• Car Insurance “Fine Print” Trips and Traps! (Part 4)

    Posted on 27 June, 2018

    This month, the Donnellys team delve deeper into our Car Insurance series, and detailing in greater detail exactly what may lie in the fine print of your car insurance policy.

     

    Car left unlocked

    When you fill your car up with petrol, do you ever leave your car unlocked or keys left in it while you go to pay the bill? What happens if someone steals your car while you are paying the bill. You would expect your Comprehensive Car policy would cover that eventuality – most do. However one high profile insurance agency has a special exclusion in their little red car branded policy to avoid claims like this.

     

    Incorrect Fuel

    Several high profile insurers or agencies have a special exclusion to avoid claims in case you accidentally use the wrong fuel at a petrol station so you need to be very careful as it is an expensive repair job to fix this mistake.

     

    At Fault policy definition

    Most Car policy insurers will not penalise your renewal premium for a claim made when you are not “at fault” and you can identify the other party involved in an accident so that they can recover your claims costs from them.

    However, most policies do not define not “at fault “so therefore it is up to the insurer to decide whether they will penalise your premium or not. Usually the only time you are “not at fault” in a road accident is if another driver collides with the rear of your car. Intersection accidents are usually considered 75/25% blame between the parties so in that situation you would have some fault at least so your renewal premium may be penalised according to the policy wording.

    A few insurers do define not “at fault” which means as long as you are not mainly to blame in an accident your renewal premium will not be penalised for that type of claim.

     

    Passenger Liability cover

    Bodily injury caused to another person through the use of a registered vehicle is covered by individual states’ compulsory third party injury legislation. However the legislation in some states excludes injury caused by a passenger alighting from a vehicle when unsafe to do so.

    Some comprehensive car insurance policies have been extended to cover this gap in cover while others still exclude any bodily injury cover from any cause. It’s best to check your state’s legislation in this regard and your comprehensive policy conditions to ensure your passenger’s liability for injury to passers-by when opening a car door is covered one way or another.

     

    Fine Print Exclusions

    So it’s 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.

     

    If you would like more information about any of the above articles, Donnellys would welcome your enquiry on (08) 8236 7789.

    Note:   This information is provided as general advice only to readers as a guide to Australian insurance policies. You should not rely solely on this information for your own situation and need to read the policy and PDS for any insurance that you are considering buying to ensure it suits your circumstances.

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