TRAPS TO AVOID

Compare excess plus price

Online quotes don’t always provide an apples-for-apples comparison because excesses can vary significantly. “Make sure you review the excess the insurer is applying when they give you your quote," says Budget Direct’s Jonathan Kerr. "We have seen some examples where the provider has started out with a very high excess in order to produce a relatively competitive quote. It’s worth taking a minute extra and seeing what the quote price looks like when you apply the same excess to all quotes.”

Don’t assume your windscreen is automatically covered

“Windscreen repairs are not covered as the cost of the repair is typically less than the basic excess,” says Kerr. “However, windscreen replacements are covered and the excess is the same as the policyholder’s basic excess.” Some insurers, such as Budget Direct, allow drivers to reduce their window glass excess to as little as $40 for just a small rise in premium.

When you are unexpectedly at fault If your car is stolen and the thief can’t be found, your insurer will treat your claim as though you are at fault. In other words, you’ll pay the excess. In this situation, Kerr says, “the policyholder is required to pay the applicable excess and their no-claim discount (NCD) is reduced on renewal by two years”. Some insurers offer NCD Protection, which allows drivers to make one claim per year and two claims in a three-year period without affecting their discount – even if the driver was at fault for any of the claims.