Car Insurance Tips and Traps (Part Three)
Posted on 02 April, 2018
In the final instalment of our ‘Car Insurance Tips and Traps’ series, we’re going to take a look at the fine print exclusions that could apply to your car insurance policy. We’ll also look at what happens when you use your car as an Uber vehicle, or if you need a rental vehicle after an accident.
Rental Car Cover After an Accident
Most Comprehensive Car insurance policies will cover you for the cost of hiring a substitute car for up to 14 days usually if yours is stolen but not if you are involved in an At Fault accident while your car is being repaired.
You may be able to find a repairer which can provide you with a loan car but you need to check your position regarding your liability for damage to the loaned car.
For convenience to attend to your normal routines using your car, it is best to arrange optional cover with many insurers for a rental car while your car is off the road.
Uber-Style Use of Your Car
A standard Comprehensive Car insurance policy allows you to share your car use with passengers providing it is not for reward. Therefore Uber-style use of your vehicle charging passengers for transporting them will technically invalidate your policy. Some insurers have reacted to this new society sharing economy development for Car insurance by providing cover for this activity but limited to a nominated maximum number of hours use per week for this purpose.
If this affects you, it is best to check with your insurer whether they provide this extra cover and what are the limitations of cover. However, don’t assume you have the cover without notifying your insurer in writing to gain their acceptance of this activity as you are responsible to inform them of any risk change to your previously disclosed circumstances.
Fine Print Exclusions
It is good to read the cover features of a policy but equally important is the need to be aware of cover exclusions or features missing when comparing policies so you know if you have the right policy for your circumstances.
Check the table below, which compares certain features of prominent direct insurers’, policies to see why you need a broker to find the right policy for you.
The above coverage comparisons were compiled by Donnellys from the Product Disclosure Statements (PDS) / Policy Documents viewed on the individual insurance providers’ website as at January 2017. This information is provided as General Advice only and a Guide to the right policy for you. You should check the full details of coverage, cover limitations and exclusions before making a buying decision.
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