Underwriters

Underwriters

Underwriters are the decision makers behind all types of insurance companies and essentially are the ones that decide whether a claim is approved or not. They basically control the behind the scenes of an insurance company and will determine (based on a risk assessment) all the factors and features of a policy such as who the company will insure, the price of the premiums and what is included in a car insurance policy.

 

When it comes to car insurance, if a customer makes a claim, the underwriters will assess the situation and determine whether the claim is approved or denied. If something looks suspicious or if the person at fault is claiming it wasn’t their fault, the underwriters may investigate the incident further and speak to the police if required to better determine who they can make the claim against. It is then up to the car insurance company to notify the customer of the situation and organise for repairs, payment or adjustment to the claim.

 

The majority of car insurance policies are held with companies that are underwritten by the same players. These underwriters are big name companies that have a huge financial base and have been around for years. For instance Bingle is underwritten by AAMI which is underwritten by Suncorp Metway, GIO is by Suncorp Metway, and AON is by GGU which are also the underwriters for Bendigo Bank as well as other financial institutions.

 

So if you are unsure of a smaller less known car insurance company, find out who their underwriter is as you may be surprised and it may give you the confidence you require to go ahead with the quote.

 

Some car insurance companiesalso have the facilities and the capabilities to do their own underwriting. For instance, Allianz do their own underwriting as well as for other companies like the National Australia Bank. Youi also does all of their underwriting themselves.

 

Is your current comprehensive car insurance near renewal or are you interested in seeing how much you can save on your premium?

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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. 

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.