Can I get a refund on car insurance?
Have you decided to cancel your car insurance policy? Maybe you’ve sold your car, or you found a better rate elsewhere. Perhaps you’re just not driving it anymore. So what happens to the unused amount of your car insurance? Can you get a refund on unused car insurance in such a scenario?
It often depends on who cancelled the policy: you or your insurance provider. If you initiated the process of cancellation, then you may be able to get most, if not all, of your unused amount. There might be some cancellation fees involved.
However, if the policy has been cancelled by your provider, because you defaulted on a payment, then you will not receive any refunds. Keep in mind, sale of your vehicle, or traffic violations such as receiving too many speeding tickets, or being charged with reckless driving, are not reasons to withhold refunds.
If you pay your insurance monthly, your future payments will simply stop. However, many insurance policies are paid upfront for the year, as some companies offer discounts. If this is the case, get in touch with your insurer about getting a refund for the unused amount.
How to choose car insurance?
With so many types of car insurance out there, it can be a challenge to choose the right one for you. Factors to consider when choosing car insurance include the cost, the inclusions, and the benefits of each, which may vary from provider to provider. When choosing a car insurance company, spend some time comparing what is, and what isn’t, covered by the policies.
Compulsory third party (CTP) insurance is part of your car registration cost. However, CTP does not protect you against damage to your car if it’s written off after an accident or if it gets stolen. Moreover, you might have to pay for damages to someone else's property in case of an accident.
Other covers you may wish to consider are third party property insurance, third party property, fire and theft insurance, and comprehensive insurance. While you might want to get additional insurance, not everyone requires the highest cover, and it depends entirely on several factors, such as the make and age of the car or the area where you live.
You can compare car insurance providers to get a policy that suits your needs.
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 car insurance cover contents?
Thousands of vehicles are stolen each year, but insurance can protect you from financial loss.
A common question you may have is what does my car insurance cover? This depends on the type of insurance and there are four basic types of car insurance, and each offers different cover.
Types of car insurance
Compulsory third-party (CTP) insurance indemnifies you against liabilities arising due to personal injuries to another party. A third-party fire and theft insurance policy covers loss to your car or third-party property in an accident. It also covers expenses if your vehicle is damaged in a fire or stolen. Third-party property insurance covers any liability resulting from damage to third-party property but any damage to your property is not covered under this policy. Comprehensive policy covers most costs arising in case of an accident to either your car or third-party property.
Does car insurance cover stolen contents?
Does car insurance cover contents lost in case of a theft? Generally, any valuables stolen from the vehicle, such as your phone, are not covered under car insurance. However, some insurers offer vehicle contents insurance that does cover the loss of valuables from your car.
Consider reading your policy’s product disclosure statement (PDS) to find out if it covers contents, or contact your insurer directly.
Remember, there are several ways in which you can prevent theft of both your car and contents. Being a little more cautious can make a huge difference.
Can you have a car without insurance?
Can you have a car without insurance? The simple answer is ‘no’ and driving without insurance is illegal. Every vehicle in Australia is required to have at minimum a Compulsory Third Party (CTP) insurance policy to be registered to drive.
Having car insurance beyond CTP is entirely up to you as the driver and owner of the vehicle. You may want to keep in mind, however, that being in a car accident can be traumatic, especially if it results in vehicular damage or injuries.
Dealing with any expenses that arise in an accident when you are at fault can cause additional stress. This is especially true if you don’t have insurance coverage that will assist in paying for these damages.
Compulsory third-party insurance
In multiple states and territories, the cost of CTP insurance is included in the registration expenses. For the states or territories where it’s not included, CTP insurance needs to be confirmed before you’re able to pay for registration. CTP insurance protects you against claims arising due to accidental injuries or death when you are involved in an at-fault car accident.
Why is CTP inadequate?
CTP does not cover damage to third-party property or any of the vehicles involved in the accident. The driver who is responsible for the accident is liable to cover all the expenses. Therefore, if you only have CTP insurance, you’ll have to pay for other expenses, such as car and property repairs, towing, and potentially car rental. If you want a policy that covers these costs, you need a comprehensive or third-party property damage insurance policy.
If you’re asking, is it illegal to have a car without insurance, the answer isn’t simple. Specifically, it is illegal to not have a CTP policy at the very least, but any insurance beyond that is a choice. If you’re caught driving an unregistered vehicle -- if you don’t have a CTP insurance policy, that is -- you may receive infringement notices that include fines and a loss of demerit points.
Can I have two insurance policies on one car?
Everyone who drives a car in Australia must have insurance. If you were found driving without insurance, you’d likely have to pay a big fine go and may even have to go to court.
Having said that, there’s no need to have two car insurance policies at the same time if both cover the same thing.
You may get different policies for comprehensive or third party damage and compulsory third party, but usually there’s no need to have different policies for different drivers. Insurers should cover multiple drivers for the same car.
There are some instances where you may accidentally have two of the same car insurance policies. For example, if one policy has automatically renewed, but you sought insurance elsewhere without realising. If the question is, can a car have two insurance policies legally? The answer may technically be yes, but again, having two separate insurance policies for the same vehicle is not recommended.
If you do have two policies and are involved in a car accident, you cannot file claims with both insurance companies to get a financial windfall.
Can you get same-day car insurance?
While you can buy car insurance the same day you purchase a vehicle, coverage may not take effect immediately, and you need to make sure you aren’t driving around without an active car insurance policy. This can happen if the insurer insists that your vehicle needs to be inspected before they approve the policy. When purchasing a new or used car, you will need compulsory third-party (CTP) coverage before you can drive it. Usually, CTP coverage is included with your car registration. However, in some states, you can choose to buy it from an insurer licensed by the state or territory to offer CTP coverage. Consider checking whether you should buy this policy before registering the car.
Given that you can buy a car insurance policy online, getting the policy may only take an hour or two if you’ve done your research. You may want to ask the insurer about any waiting periods they may place on coverage. For instance, if you’re buying third-party fire and theft insurance just before the bushfire season, the insurer may not allow you to file a fire damage insurance claim anytime soon. Many insurance providers will let you decide the date on which your coverage becomes active. This may be useful if you’re about to buy a car and want to match the date the insurance coverage becomes active with the day you plan to register your car.
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.