• Comprehensive Car insurance Tips and Traps (Part Two)

    Posted on 05 March, 2018

    In part one of our Car Insurance Tips and Traps series, we looked at total loss claims, new for old car replacement and loan interest gaps. This month, we’re delving into everything from passenger liability for injury to car insurance claim penalties.

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    Passenger Liability for Injury

    In many comprehensive car insurance policies, injury to others caused by a passenger opening a car door when unsafe to do so is not covered. But, Compulsory Third Party Liability (CTP) insurance for injury caused in an accident also excludes this risk in some states. So, it’s best to check whether you have this cover, so you can protect your passengers in the event of this type of accident.

    Loan Car Cover

    What happens if you are loaned a car by a repairer while your car is being fixed or when your car is being serviced and you have an at-fault accident in that car? Your comprehensive car policy will cover your liability for damage as a substitute car if yours is not being used at the same time, but not damage to the loaned vehicle.

    You will need to sign a document when taking delivery of the loan car which probably makes you responsible for accident damage either for the owner’s policy excess payable for a claim or maybe even the full damage cost or their loss of no claim bonus.

    So, it’s best to read any loan car agreement to check your damage responsibility and whether you have this cover in your comprehensive car policy in the event of this type of accident.

    Car Insurance Claim Penalties

    Having a car accident and dealing with the stress that comes with it is bad enough, especially when you have to arrange repairs and pay your claim excess. When you receive your renewal notice and your premium has skyrocketed due to your at fault accident penalty, it almost feels like too much to handle.

    Most policies don’t penalise your renewal premium in the following circumstances:

    • Your car is damaged while parked and you can identify the person at fault;
    • Whilst travelling your car is hit from behind by another driver’s car and you can identify the driver.

    This is because your insurer can recover your damage costs in these instances from the person at fault, including your excess payable for your claim.

    Most other types of accident involve some fault by the parties involved. Many insurance policies will apply an excess to your claim and penalise your renewal premium if you are at fault. So it’s best to have a policy that clearly defines what degree of fault will penalise you in an accident, e.g. greater than 50 per cent fault.

    The best way to avoid a hefty increase in your renewal premium in the event of an at-fault accident like a collision is to buy a Protected No Claim Bonus policy option, which is available from many insurers but it would pay you to check if you have this extra cover now or not.

    Donnelly Insurance Brokers can look after you in all the above-mentioned circumstances to ensure you get the right cover at the right premium for the best value coverage and assist you with claims for better insurance. Contact us today for more information!

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