Boomers more accident prone than Gen Y

Boomers more accident prone than Gen Y

If you believe the pundits, young drivers – aged between 18 and 24 years – are the least likely cohort to claim on their motor vehicle insurance.

A survey has revealed that the “at-risk” generation Y group filed fewer than 10 percent of all claims in the past three years. By comparison, baby boomers accounted for almost 40 percent of all claims made in the same period.

The survey results also put to bed the age-old battle of the sexes, determining which group is better behind the wheel – or at least, the group least likely to make a claim against their car insurance policy.

According to the survey, 51 percent of insurance claims are being made by females and 49 percent are being made by males.

The survey asked 4071 motorists whether they had made a car insurance claim in the last three years, and those who answered ‘yes’ (1131) were asked about their overall claims experience, specifically around the ease of making a claim, speed of response and quality and timeliness of repairs made.

Of those surveyed, 76 percent of drivers reported being either satisfied or very satisfied with their overall claims experience. Fewer than 10 percent of respondents were prompted to switch insurers as a result of their experience.

So which motorists were the happiest claimants? Those insured with QBE, according to the survey, in part due to generous claim limits in areas such as baby capsules, trailers, emergency repairs, emergency accommodation, accident clean up and towing charges.

When it comes to comparing comprehensive car insurance policies, it’s important to consider more than simply the upfront costs. Use a comparison site like RateCity, which allows drivers to compare details including basic excess and other policy features – such as whether the insurer allows the claimant their own choice of repairer, or if the policy offers roadside assistance as an option – as well as price.  

In the best scenario you’ll never have to make a claim against your policy. But should you have an accident, or need to make a claim for whatever reason, it’s vital that you have all the features you need in a policy and be covered to suit your car and circumstances.

So look beyond simply the price when taking out insurance, and always read the product disclosure statement before buying any insurance product.

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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.