Car Insurance Excess

Car Insurance Excess

It is probably fair to say that when it comes to car insurance, we all have a long list of things on which we would rather spend our money. Because of this, minimising the amount of money we do have to spend when purchasing a car insurance policy is important for many Australians.

One of the quickest and seemingly easiest ways to decrease your premium in the short term is to increase the excess you will have to pay if you make a claim where you were the driver at fault. Most insurance companies offer this opportunity to save on your yearly premium, however while this approach can definitely save you money in the short term, you should be aware of the consequences of increasing your excess dramatically should you be required to pay it. A crash is unpleasant enough without a huge excess bill adding to the drama.

No one intends to have a crash, but if you think you might be one of those people who will need to pay their excess and are worried about the added cost, or even if you just don’t want the hassle of having to pay out even more should you prang your pride and joy, you may prefer a different option on your premium.

Some insurers allow you to remove your excess altogether for a fee reflected on the premium. This will, of course, cost you more in the short term and if you never make a claim, where you would have otherwise had to pay your excess you will be paying more for your insurance. However, with 1.4 million car insurance claims being made by Australians in the 2005/2006 financial year, the security of no excess might be just the peace of mind you need when you get behind the wheel.

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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.