Private Motor Vehicle Insurance

• What it is: The amount you agree to pay out of pocket if you make a claim.
• How you control it: You can select a higher or lower excess amount when setting up your policy.
• Impact:
  • Higher excess: Lowers your premium but increases your out-of-pocket expenses in the event of a claim.
  • Lower excess: Reduces your upfront cost at claim time but increases your premium.

Tip: Choose an excess amount that fits your budget and risk tolerance.

• What it is: Decide how often you pay your premium – annually, monthly, or quarterly.
• How you control it: Select a payment plan that aligns with your cash flow.
• Impact:
  • Annual payment: Often offers discounts or reduced fees compared to monthly payments.
  • Monthly or quarterly payments: Easier to manage for those preferring smaller, more frequent payments.

Tip: Review your financial situation to select the payment option that minimises costs without adding pressure.

• What it is: The number of kilometres you drive annually can influence your premium.
• How you control it: Provide an accurate estimate of your yearly driving habits.
• Impact:
  • Lower kilometres: Some insurers may offer reduced premiums for drivers with limited mileage.
  • Higher kilometres: Might result in higher premiums as more time on the road increases risk.

Tip: Keep your insurer updated on changes to your driving habits, especially if you’re driving less than expected.

• What it is: Optional covers provide additional benefits beyond standard coverage.
• How you control it: Select or remove optional covers based on your individual needs.
• Common Optional Covers:
  • Windscreen and glass replacement
  • Hire car coverage
  • Roadside assistance
• Impact: Optional covers can enhance your protection but may increase your premium.

Tip: Regularly review and adjust your optional covers to ensure you’re not paying for services you don’t need.

• What it is: If your vehicle is financed or leased, the lender may have specific insurance requirements.
• How you control it: Ensure your policy complies with any financing terms, such as mandatory comprehensive coverage.
• Impact: Having the right insurance protects both you and the lender’s interest in the vehicle.

Tip: Consider policy features that align with your financial plan, such as agreed value options or loan gap cover, to avoid surprises in the event of a total loss.