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What does comprehensive car insurance cover? Insurance exclusions …
What does comprehensive car insurance cover?
What does comprehensive car insurance cover? This post takes a look at examples of what comprehensive car insurance covers and what it may not cover. It follows on from the previous post about types of car insurance which explains what they are.
When you buy full comprehensive car insurance you are covering repairs to your car and another person’s property.
What does comprehensive car insurance cover? Here are some examples of what the cover usually buys.
- accidental damage (e.g. in supermarket car parks),
- collision or crash,
- engine damage,
- theft or damage from attempted theft,
- vandalism or other malicious act,
- hire car cover if your car is stolen,
- windscreen, sunroof, glass cover,
- liability cover up to $20 million,
- some insurers offer Accidental Death Cover (with strings attached),
- some insurers offer safe driver discount for eligible drivers.
It is important when researching what comprehensive car insurance covers to look at what specifics some of the above do and do not cover. What type of explosion for example? A nearby shop blowing up and engulfing your car? A gas tank in the boot blowing up? Maybe the insurance covers both of these types and more? But they usually refuse claims in relation to terrorism unless the federal government specifically calls an incident such (like we saw with the Sydney Siege in 2014).
Where engine damage is concerned, this is another example of what to check for coverage of in policies that are out there. If you think you are in a Dukes of Hazzard TV episode and try to jump the creek in your car and end up head first in it then there is obviously very little chance your insurance claim will succeed 🙂 However, if the engine catches on fire suddenly or is damaged in an accident then you are normally covered. Damage caused by not changing the timing belt, filling up the oil and other regular maintenance is not covered if you fail to do these in the first place. It is like with the brakes which must be done or a claim for damage as a result will fail.
Regular comprehensive car insurance usually does not cover taxi vehicles. So using a very recent example, if you drive for Uber in your personal car and accept a payment to drop someone off not far away, and you have an accident along the way, then the insurer may refuse your claim if it is found that you were doing a job for Uber.
These are just a few examples of what you need to find out more information about when choosing comprehensive car insurance. You also need to ask, or read about in the product disclosure document, what else is offered in the insurance cover as well as exclusions. And always ask for a discount in your second and successive years or threaten to go elsewhere. They always keep increasing premiums so ask for a lower one than what they quote. As with all of this you “don’t get if you don’t ask”!
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