Cheaper premiums aren't always the best option. What looks like a great car insurance deal on paper can leave you on the hook for unexpected expenses, should an incident occur.
We're here to help provide information to you on the different levels of cover so you can make an informed decision on what car insurance is best for you and your lifestyle. You will need to refer to the PDS for full details, including the exclusions, but here’s basically what you need to know:
Types of car insurance
One of the first decisions you’ll have to make when looking for car insurance is the level of cover you require. Understandably, the depth of your cover plays a role in determining its costs.
At Youi, we offer the standard three levels of cover for those who are seeking more coverage than provided under Compulsory Third-Party (CTP) insurance:
Comprehensive Car Insurance
This cover is the real deal. The big kahuna. Youi’s comprehensive car insurance doesn’t just protect you against certain accidental damage or your legal liability to others, it may also cover:
- Youi roadside assistance.
- Damage to the car caused intentionally by others.
- Accidental damage to the car caused by a storm or flood.
- Damage to the car caused by fire.
- Theft, or damage to the car caused by attempted theft of the car.
- Damage to the car caused by earthquake.
- If you can’t safely drive your car after an insured event, reimbursement for emergency accommodation, transport and repairs to the car if you are more than 100kms from home, of up to $1,000 per claim.
- Hire car benefits for up to 14 days following a theft, or a not at fault accident.
- Replacement or recoding of locks and keys of up to $1,000 after excess if your car keys are stolen.
- Loss or damage to contents inside the car as a result of an insured event of up to $150 per item and $750 per claim.
- The cost of towing and storage of a car at the nearest suitable place after an insured event.
- Replacement of baby seat(s), personalised registration plates, towbar and window tinting where they are damaged as a result of an insured event.
- Reimbursement of out of pocket costs for counselling services resulting from an incident where a claim has been accepted, of up to $1,500 per person for policy holders, listed drivers and household members.
- Damage to a registered unbraked trailer for market value up to $1,500 if it is being towed, parked overnight at home or it is being used without being unattended for less than 24 hours.
Exclusions apply. Refer to the Youi Car Insurance PDS for full details, exclusions, terms and conditions.
Depending on your needs, you may also elect optional cover for hire cars for other insured events and business items, though doing so may add to the cost of your policy.
Third Party Fire and Theft Insurance
We call our Third Party Fire and Theft Insurance “the sweet spot.” While it isn’t as wide-reaching in its cover as our comprehensive policies, it offers more peace of mind than CTP and Third Party Only.
Specifically, this type of premium covers:
- Legal liability regarding third party property damage up to $20,000,000.
- Damage to the car caused by fire.
- Theft, or damage to the car caused by attempted theft of the car.
- The cost of towing and storage of a car at the nearest suitable place after an insured event.
- Loss or damage to contents inside the car as a result of an insured event of up to $150 per item and $750 per claim.
- Reimbursement of out of pocket costs for counselling services resulting from an incident where a claim has been accepted, of up to $1,500 per person for policy holders, listed drivers and household members.
- Replacement or recoding of locks and keys of up to $1,000 after excess if your car keys are stolen
- Hire car benefits for up to 14 days following a theft or attempted theft of your car.
- Replacement of baby seat(s), personalised registration plates, towbar and window tinting where they are damaged as a result of an insured event.
- Temporary replacement cover of a replacement car for 14 days if you sell or give away your insured car at the same level of coverage as your existing car, at market value if you have an agreed value of cover.
- Damage to a registered unbraked trailer for market value up to $1,500 if it is being towed, parked overnight at home or it is being used without being unattended for less than 24 hours.
- If you can’t safely drive your car after an insured event, reimbursement for emergency accommodation, transport and repairs to the car if you are more than 100kms from home, of up to $1,000 per claim.
Exclusions apply. Refer to the Youi Car Insurance PDS for full details, exclusions, terms and conditions.
Third Party Property Only
As you might expect, our Third Party Property Only policies strip coverage down even further, leaving just the essentials. But make no mistake, it’s a hardworking policy that’ll be there for you, should you need to call on it. It covers:
- Legal liability regarding third party property damage up to $20,000,000.
- Temporary replacement cover of a replacement car for 14 days if you sell or give away your insured car at the same level of coverage as your existing car, at market value if you have an agreed value of cover
- Reimbursement of out of pocket costs for counselling services resulting from an incident where a claim has been accepted, of up to $1,500 per person for policy holders, listed drivers and household members.
Exclusions apply. Refer to the Youi Car Insurance PDS for full details, exclusions, terms and conditions.
None of these three policy types are required by any state in Australia. Compulsory Third Party Insurance (CTP insurance, or “Green Slip” insurance in NSW), on the other hand, is mandatory.
Understanding car insurance policy costs
To help you understand car insurance policy costs, an article on the Australian Securities and Investment Commission (ASIC)’s MoneySmart website, gives the following scenario:
“Nathan decided not to get any insurance because his car is very old. A few months later, he hit a brand-new sports car, which needed $20,000 worth of repairs. Because he's not insured for damage to other cars, Nathan has to take out a personal loan for $20,000 and work extra hours to pay off the debt over five years.”
Can you afford to cover costs like these? Would damage to your vehicle prevent you from getting to your job in order to earn the funds needed to cover repairs in the first place?
A cheap policy may save you money in the short-term, but if you’re in the increasingly large number of Australians involved in a car insurance claim, going without appropriate cover can be a costly mistake.
Policy customisation
Differences in policy costs exist between different levels of cover, and they also vary from driver to driver.
On a basic level, your car insurance quote may take the following factors into consideration:
- Your age.
- The kind of car you drive.
- Your driving history.
- Your history of making insurance claims.
- What you use your car for.
- How often you drive.
- Where you live.
- Whether you own your car outright or hold financing on it.
Insurance companies typically use complicated formulas that take these variables into consideration in order to determine how likely it is you’ll lodge a claim in the future. The more risky a driver they consider you to be, the more likely it is that your quoted car insurance premiums will be higher.
That’s why our approach to underwriting and pricing rewards drivers for engaging in safe behaviours with lower premiums. In addition to the factors listed above, we may take all of the following elements into consideration when quoting premiums, among others:
- Your willingness to pay premiums annually versus monthly.
- Driving less than 10km to work.
- Being retired.
- Parking securely, in a private and locked garage at night.
- Using your car in trips to work 2 days or less.
- Ignoring your phone while driving.
- Having obtained your licence before turning 19.
- Having a light-coloured car.
Qualifying for lower premiums on your Youi car insurance policy through considerations like these could help you save money in the long-term.
Selecting your provider
Insurers are not created equal. Just because one company quotes you a premium that’s cheaper doesn’t mean there aren’t hidden fees involved, or costly hoops to jump through.
It’s important you understand the specifics of your quoted policy so you can weigh up any potential costs you could be liable for.
Take the time to find an insurance provider you trust. Ultimately, whether you elect an inexpensive policy or a more expensive comprehensive option, the most important thing is to make sure you have the cover that covers you for exactly what you need, as an individual.
Information provided in this article is general advice only and has been prepared without taking into account any person’s objectives, financial situation or needs. Youi Car Insurance is subject to limitations and exclusions. For full policy inclusions and exclusions, please consider the product disclosure statement at www.youi.com.au to decide if the product is appropriate for you.
