New Cars

List of Car Insurance Traps to Avoid


LPurchasing an insurance cover for your vehicle is mandatory according to rules set in various states. However, some have been known to get into car insurance traps that have put them in trouble with the insurance companies and the authorities.

The case of car insurance traps can create a big problem in Australia especially for restricted drivers. Purchasing a third party fire and theft car insurance gives you an extra cover against the uncertainties of life. However, if you misuse that cover, it becomes unethical.

Some of the insurance traps you should avoid are under- or over-insuring. Ensure that the level of cover you choose is enough for your car. For instance, you may not have to pay for the protection if you are driving a rickety car or spend so much on the insurance if you are driving an expensive car.

In the case whereby you need to make any modifications to your car after you have bought the cover, let your insurer be aware of that. This is because if a theft case or fire incidence takes place and you make a claim, it may be rejected by the insurer.

It is often that people forget to include names of all the drivers using their cars. Ensure that you list all the drivers of your vehicle in the policy. Usually, the car stops being insured if the person behind the wheel is not listed in the policy.

Also, you should not be pressured to get an unsuitable or expensive policy simply someone says so. Take time to shop for a car insurance that will be helpful during a car theft or fire incidence. If you also notice your car insurance renewal notice is rather expensive, start looking for better providers in Australia who offer better value for money.