Is Comprehensive Car Insurance for me?

Is Comprehensive Car Insurance for me?

When shopping around for car insurance, the first question you need to ask is, "Do I need Comprehensive Car Insurance or is Third Party Property Damage Insurance sufficient?"

Comprehensive Car Insurance provides covers you for accidental damage to your vehicle or theft of your vehicle as well as damage to other people's vehicle or property where you are at fault. Additional benefits include:

• Car hire (up to $100 per day) if your car is stolen
• Towing after an accident
• New replacement vehicle if your new car which was purchased brand new or as a demonstrator model (is a total loss) and is less than 2 years old
• Accidental loss or damage to a trailer and Emergency repairs where we have accepted a claim for accidental loss or damage to the insured vehicle
• Emergency accommodation* (Terms, conditions, limits and exclusions’ apply)

In deciding whether to take out Comprehensive Car Insurance you should weigh up the financial cost to yourself if your car is written off compared to the insurance premium you are paying.

If your car is financed, Comprehensive cover may be a requirement of the finance company. If your vehicle is not financed, the decision to go for a Comprehensive Car Insurance policy comes down to the value of the vehicle, what it would cost you to repair it, and whether you could pay for the repairs yourself.

As your car ages and its market value decreases, a Third Party Property Damage policy may make more sense. Third Party Property Damage Insurance covers you for any damage you cause to another person’s vehicle or property.

Alternatively, Third Party Property Damage Fire and Theft may be the ideal middle ground for you. You are covered not only for damage caused to other people’s property but also if your car is stolen or damaged by fire, up to a specified amount. However, it is worth bearing in mind that with online discounts available and ways of reducing your premium, comprehensive insurance may represent better value depending on your circumstances.