Have you got the right car insurance?

CONSUMERS are being bombarded with advertisements for cheap car insurance, with one company even offering to give you cash if they can’t give you the cheapest price – but short-term savings may prove costly for some

“Price is obviously important for people but we strongly recommend that people look at a range of features alongside price and don’t make their decision on price alone,” RateCity chief executive Damian Smith says.

Smith says the cheapest insurance products tend to suit drivers deemed to be in the lowest risk categories.

“The low-cost policies are more appealing to those with lower-value cars who probably aren’t driving as much and for whom the car is less critical,” he says.

Consumers could save between $ 200 and $ 300 by switching to the cheapest deals available, but some features may be missing, Smith says.
This includes things such as the option of a replacement car if yours is damaged which, for those who rely on their car daily for work or other responsibilities, is vital.

Smith says eliminating the option of a hire car in a policy can reduce the premiums by as much as $ 100 a year.

Smith says among the cheapest insurers are Budget Direct, Youi, Real Insurance and Progressive Direct.

“For some kinds of drivers in some situations, each of those four will probably have lower prices,” he says.

“But what you need to do is compare those features and make sure that the whole of the policy is right for you.”

RateCity’s website allows consumers to compare car insurance quotes but the two major insurers, IAG and Suncorp, refuse to allow their data to be used on comparison sites. Quotes are usually available from their own websites.

AAMI, which is owned by Suncorp, says people should take great care when buying any insurance product and question the details of the policy.

A spokesman for AAMI says people should ask what the size of the excess is, because a larger excess usually means a cheaper overall price.

He says people should also check if the policy includes windscreen cover, how much cover you have if people break into your car and steal valuables, do their repairers use only genuine parts, and will emergency costs be covered if you break down in a remote location.

“Perhaps most importantly, accidents can be stressful experiences, so it’s really important to reduce the stress of those situations by managing the process for our customers and keeping them informed at all times.”

Source: news.com.au