Car Insurance Bill

Car Insurance Bill

It is important that you pay your car insurance bill on time and before the due date because if it isn&#39t the consequences can be drastic.

The way it usually works is if you don’t pay, you aren’t covered and your policy could be cancelled. For instance, if you were involved in a collision where you were at fault and you made a claim, there is a chance that your car insurance provider will deny your claim and you may have to pay for any repairs out of your own pocket.

However each car insurance company is different and how they deal with a situation like this will depend on what they state in their policies.

For instance, the below policies on paying your car insurance bill were current at December 2010:

  • NRMA: If any installment stays unpaid for 14 days or more after the due date, they may refuse your claim for incidents that take place 14 days or more after the due date. If you haven’t paid your installment for one month after it’s due, they may cancel your policy automatically without letting you know.
  • AAMI: Their policy states that if a debit attempt is unsuccessful, they send you one or more notices. They will try and debit your account again during the four weeks after the first attempt. If an installment payment remains unpaid for 14 days or more from the original due date they won&#39t accept any claims. They may also cancel your policy without warning if you haven’t paid for one month or more from the original due date.

Meeting your payments and ensuring they are up-to-date and paid on time is your responsibility. Make sure your car insurance bills are paid or risk not being covered which could ultimately cost you more in the long run.

Here are some tips to ensure you are covered all the time:

  • Sometimes it is better to be safe than sorry, so if you are unable to meet an installment, call your insurance provider to notify them. They may be able to organise alternative arrangements or to let you catch up next time.
  • If your insurer withdraws your installments directly from your bank account, make sure you have enough money in there. Speak to your insurer to find out when your payments are scheduled.
  • If you are having trouble meeting your installments perhaps you are paying too much. compare car insurance online to see if you can find another policy for less.

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Learn more about car insurance

Can you insure your car for 6 months?

Most Australian insurers won’t offer you a 6-month car insurance policy, so you may need to buy a policy that covers your car for damages and cancel it after six months. You will need to purchase comprehensive car insurance to protect your car from accidental damage, theft, vandalism, or natural disasters.. 

Consider checking whether your 6-month comprehensive car insurance will cost more if you pay monthly or six-monthly premiums instead of a one-time annual premium. Another question to ask the insurer is whether you’ll need to pay administration or cancellation fees when you cancel the policy.

Alternatively, you can look for a suitable ‘pay as you drive’ car insurance policy, which usually offers you the coverage of a comprehensive car insurance policy but only requires you to pay for the distance driven. Such a policy may not be the ideal 6-month car insurance plan as it is based on how much you drive rather than for how long. If you need to drive a lot, you may end up paying more than you’d pay for regular car insurance. 

Does insurance cover a stolen car if keys were in the car?

A car insurance policy that covers the theft of your car, such as third party fire and theft insurance, usually covers a stolen car, even if the keys were in the car’s ignition.

However, your insurer may deny the claim if you live in an area where there have been several car robberies reported recently. They will see you leaving the keys in the car as a case of negligence. In such cases, your insurance provider may even expect you to have installed anti-theft security measures in your car. 

You may need to confirm whether or not you left your keys in your car, and if they had been stolen or misplaced, before filing your car insurance claim. The loss or theft of your car keys may be covered by a comprehensive car insurance policy, but usually as an optional item.

If you can confirm that your car keys were stolen, mention this in your claim as this will help establish that your car was not stolen as a result of your negligence.

Can I drive a new car without insurance?

It is illegal to drive a car in Australia without insurance. Most states require that you get your insurance in place before you drive the car off the dealership’s plot. So, the answer to whether driving a new car without insurance is no, it is not allowed.

The only time you can possibly legally drive an uninsured car is when you have to get the vehicle registered. You should drive straight to an inspection station or your state's vehicle registry. You must also make sure that you take the most direct or convenient route possible.

It is important to note that your compulsory third party insurance (CTP or green slip) isn’t valid until your car is registered.

Driving an unregistered or uninsured vehicle can have severe legal repercussions. If you are involved in an accident, and are driving an unregistered and uninsured vehicle, you will be personally liable to pay compensation to anyone hurt, as well as for damages. If you are caught driving a vehicle without insurance, you may be fined or even have your vehicle seized.