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Why you may not be as covered by your insurance as you think…

Posted on: August 31, 2015 by renegade

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Here at Platinum Direct Finance we’ve helped thousands of people buy the car of their dreams, so we really understand the true value of your family car. For many people, a car represents a lifestyle choice rather than just a monetary investment, and having problems or an accident in your car could affect much more than just your wallet.

But while you can’t take insurance out on the emotional value of your car, you can cover the money side of things to help get you back on the road as soon as possible. It definitely helps people feel secure when they drive around in their 2nd most expensive possession to know that if someone
crashes into them they know they are fully covered.

But are they? Unless you’ve read the fine print on your insurance policy, you’ll be surprised by these 4 facts about just how covered most of us actually are.

1 in 10 vehicles on Victorian roads are uninsured

So if you are about to crash into the tenth car in a queue of cars, you’d be better off swerving into the ninth. Also, about 20% of road users only have third-party property coverage, which insures you against injuries or damages you may cause to others and their belongings, but doesn’t cover you for your own vehicle. Even worse is, in Victoria only third-party personal insurance is mandatory. That means many drivers aren’t even insured to cover other people’s property, only to cover the other drivers. Some companies may offer you some damages towards repairing your car if the accident was not your fault, and you can prove the other driver had no insurance.

Car insurance doesn’t cover you if you break the law

This one is a lot more understandable, if not widely known. If you are (provably) driving a couple of kilometers over the speed limit, or are over 0.05 alcohol limit even by the tiniest amount, you will not be covered by your insurance. Even if the accident was obviously not your fault, if you stray outside the strict parameters of the law you will not be covered.

This also applies if your car is not roadworthy. If you crash on the way to the garage to get your bald tires changed, you will likely not be covered for damages, even if your insurance usually does so. Even as little as a blown brake bulb could lose you your entire payout.

In many parts of Australia, it is only compulsory to take roadworthy checks when you are selling your car, so could be very easy for you to have voided your insurance contract without realising.

60% if car insurance complaints are from people being less covered than they thought

Many people rubber stamp their insurance policies every year, but just because you didn’t read the fine print again this year doesn’t mean it hasn’t changed. Make sure you read your policy in full so you don’t get caught out if the worst comes to the worst.

Your insurance doesn’t carry over

Say you park your car in the wrong neighbourhood, or get side-swiped at a T junction, the day after you renew your policy – you could be in big trouble. Your insurance premium doesn’t carry over when you write off or otherwise lose use of your old car. You could lose the balance of your premium on your old car and have to pay a full premium for your new car.

If you do write off your old car, make sure you use Platinum Direct Finance to finance your replacement!

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