Car insurance is simple to understand – you pay your premium every month, and if your car is damaged or stolen you make a claim and wait for the money to come.
Except, sometimes it’s not as straightforward as it seems.
What exactly are you covered for?
Did you know that it’s possible to pay a lot less in monthly insurance premiums? Many insurers are advertising policies with super-low monthly prices at the moment – but before you sign, make sure you understand exactly what kind of cover you’re getting.
Low cost may mean low cover
Some low-cost insurance policies only cover your vehicle at a lower value than it would cost to replace the vehicle. In other words, if your car were stolen or written off, you wouldn’t be able to replace it with the insurance payout you’d receive.
You can think of this type of policy as a ‘part payment insurance’ – it will pay out some cash that may help you buy another vehicle, but it won’t cover the full cost of replacement.
It’s a good option for disciplined savers
If you are disciplined with your money and you are confident that you will bank the money you save on premiums every month, you may want to consider a lower premium policy. If you want a policy that covers the full cost of replacing your vehicle – stick to the more comprehensive options.
What’s a fair replacement value for my vehicle?
If you’d like to know how much to insure your vehicle for, we have a solution ready and waiting for you.
Visit our vehicle valuation page, enter some basic details about your car, and you’ll get a fast, accurate estimate that you can use for insurance purposes.