Comprehensive Car Insurance
Comprehensive cover does vary from the different insurance companies in Australia, so it is definitely worth doing a car insurance comparison between several by getting car insurance quotes and reading the insurer’s PDS (product disclosure statement which spells out the terms, conditions and limits that apply for the insurance cover).
The information below is general information only and you should not assume that all insurance companies offer the following in their ‘comprehensive insurance policy’. We will limit the discussion to motor cars; although comprehensive insurance can also be purchased to cover boats, motorbikes, caravans etc.
What is Comprehensive Insurance?
If your car is accidentally damaged, stolen or burnt in Australia, the insurer will at their option either:
- repair your car, or
- pay you the cost of repairing your car, or
- pay you the ‘agreed value’ or ‘market value’ of your car.
With comprehensive insurance cover, there are normally ‘additional benefits’ that the insurance company will also pay for. This varies from insurer to insurer, so getting quotes is a good idea.
Some ‘typical’ benefits are:
- Emergency repairs
If your car is accidentally damaged or stolen more than a certain distance from your home and the insurance company agrees to pay your claim, the insurer may pay an amount for emergency repairs necessary to enable you to drive your car home or to the nearest place of repair. - Emergency expenses
If your car is accidentally damaged, stolen or burnt more than a certain distance from your home and the insurance company agrees to pay your claim, they may reimburse you an amount for emergency accommodation, travelling expenses or rental car expenses paid by you for you and your passengers to return home or to complete your journey. - Faultless no claim bonus
If your car is involved in an accident, your no claim bonus rating will not be affected if, in the insurance companies opinion, you or any other person using your car with your permission were not to blame for the accident occurring. You will have to supply the insurance company the name and current address of the person who caused the accident, and the registration numbers of any other vehicles involved in the accident. - New car replacement
If your car is a total loss and your car is- is still covered by the original new car warranty, and
- is less than 2 years old, and
- has travelled less than 40,000 kilometres
- Personal items
If the insurance company agrees to pay your claim after your car is accidentally damaged, stolen or burnt, the comprehensive insurance policy may cover you for an amount of money to cover the loss of personal items belonging to you or a family member. This generally does not cover mobile phones, cash or property used to generate income. - Trailer
If a trailer is accidentally damaged, stolen or burnt while it is attached to your car, the insurance company may pay for the cost of repair or an amount of money. - Windscreen or Window cover
If a windscreen or widow is accidentally damaged, the insurer may:- repair the windscreen or window, or
- replace the windscreen or window, or
- pay you the cost of repairing or replacing the window or windscreen
The insurance company may only do this once in a period of cover (12 months) and also will cap the limit.
- Hire Car reimbursement following your car being stolen
The insurance company may reimburse you the cost of hiring a similar car to your car if the car is stolen. There will be limits to the period, and you will have to pay for the fuel and running costs of the hire car. - Keys and locks
If there is reason to believe that your keys have been stolen, or burnt comprehensive insurance may cover the replacement of the keys and locks. - Towing and clean up costs
If your car is accidentally damaged, stolen or burnt, the insurance company under a comprehensive insurance policy may pay for the cost of having your car towed to a repairer and the cost of removing debris from the accident site, or where your car was burnt.
the insurance company may replace your car with a new Replacement car provided that one is locally available. There could be further conditions such as the car needing to be covered by the policy since first registration as new, or second registration provided it had travelled less than 5,000 kilometres and was less than 6 months old.
If your car has been super seeded by a new model, the insurance company under comprehensive insurance may replace your car with the new model if it is locally available.
Many comprehensive car insurance companies will also have some options that are not covered under the policy, but which you can select and pay an additional amount for.
These can include:
- No claim bonus rating one protection
- Restricted driver
- Nominated driver
As stated before, the inclusions and exclusions, terms and conditions, not to forget limits will vary with the different insurance companies for comprehensive insurance.
