The price you pay for not having car insurance

The price you pay for not having car insurance

September 8, 2010

RateCity’s car insurance myth-buster series reveals the truth about a range of common myths associated around car insurance. This time we look into the old adage of why fix something if it ain’t broken?

Myth No.1: I have never had a car accident or my car has never been stolen so therefore I don’t need car insurance.

Answer: False. If we had a crystal ball and could see what the future had in store for us then yes perhaps we could say you may never need car insurance. But unfortunately we can’t see the future and while some of us think we are invincible and nothing could possibly happen, the truth is that it could.

There are some drivers out there who may have had a lucky streak and never had a need for car insurance, but the question is, are you willing to take a risk every time you step into the car or park it somewhere?

What if you were involved in an accident or your car was stolen and you didn’t have the right level of car insurance? Not only could you be at risk of losing everything, but you could be paying for your decision for years to come. And what if you don’t have any savings behind you or you aren’t in any financial position to cover mishaps? One tiny little accident doesn’t come cheap and could put a real dent in your pocket, it could also affect any future plans you may have.

And what if you are at fault and another party is involved. Well, if you have third-party insurance this should cover them but not your car. The good news is comprehensive car insurance can protect you when you need it most. If your car is stolen or you are involved in a collision where you are at fault this level of car insurance should cover you for the cost of repairs or pay you an agreed lump sum if the car is written off or stolen and never found.

How much you pay for your premium will depend on a number of factors such as your age, what type of car you drive, where you live, where you park your car overnight and if anyone else drives the car. Also, if you do have a clean driving history with no accidents, you may receive a discount.

To get a good deal, one of the most cost-effective ways of shopping for car insurance is by comparing car insurance quotes online. By doing so, you can see what other car insurers charge, what is included in your policy and compare the features and options available so you can choose one that is not only cheaper but suits you well.

Comprehensive car insurance should be seen as an investment rather than a burden. The price you pay for comprehensive car insurance and peace of mind far outweighs the price you could pay by not being insured. Compare car insurance online today.


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Learn more about 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 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.