Questions to ask to find the best insurance
The Bureau of Statistics says that as at January 31 this year there were 19.8 million registered vehicles in Australia. And according to researcher IBISWorld, the insurance market is worth more than $21.5 billion in 2020 (measured by revenue).
Given that car insurance can be a costly bill every month, quarter or year, you want to be clear on what’s under the hood of your policy and know the finer details about what you’re covered for.
It’s a case of knowing the differences between compulsory third party (CTP), third party property and comprehensive – what each will cost and cover. If you’re unsure about a particular circumstance or event and how your policy will help, ask the insurer to explain it before you sign.
Other features to weigh up on your policy include:
• How your car is valued – you have the choice between an agreed value and the car’s market value with comprehensive cover.
• The premium – can you get a cheaper policy with another insurer for the same type of cover?
• The excess – do you have the option to lower premiums by adjusting your excess?
• Exclusions – watch for circumstances that aren’t covered.
• No-claim bonus – if you don’t claim for a certain period, your insurer may discount your premium.
• Break-ins – not all insurance policies cover items that you’ve left in the car.
• Roadside assistance – check whether there’s free roadside assistance if you break down.
• After-accident care – check whether there’s free towing and whether the insurer will cover your transport/ accommodation/car hire should your car have to be towed.
In its 2019 analysis of quotes, researcher Mozo found the year-onyear variance between comparable policies was, on average, $1047. So not only is it important to shop around, it’s also important to ask your current provider for a better deal.
Mozo also found on average that baby boomers were paying 14% more for car insurance than they were in 2018. “Your gender, age, postcode and the age of your car drive your insurance premiums,” says Mozo director Kirsty Lamont.
The average car insurance quotes for motorists in NSW, ACT and WA have jumped 5% since 2018, but Victorians ($1466) still have the highest average prices and Tasmanians ($846) the lowest.
The research found under-20s are paying the highest average annual premiums ($2061). On average men are quoted $135 more than women – $1192 compared with $1057 respectively. This gap has decreased year on year.