Motor insurance at a glance
What is motor insurance?
Motor insurance can cover your motor vehicle against accidental damage and theft. It can also protect you from the financial costs of repairing or replacing another person’s vehicle caused by an accident where you’re at fault. With a motor insurance policy, you can choose to insure your car for an agreed amount, or for the market value of your vehicle- up to $150,000. Above $150,000 will be considered on referral.
Who should consider it?
If your car is damaged in an accident or stolen, comprehensive motor insurance pays for repairs to your vehicle – or replacement costs if your car is written off. Third party property damage (TPPD) insurance – covers the costs you may be liable to pay if you are at fault and damage someone else’s car. Third Party Property Damage insurance can be purchased as part of a comprehensive cover or as a standalone policy. However, if you only have standalone cover, there’s no cover for any damage to your own car.
“While 99% of Australians claim to be safe road users, 71% admit to breaking road laws”.
(Australian Road Safety Foundation, 2022)
Did you know?
47,803
47,803 motor vehicles were stolen in the 2020/21 financial year.
((Theft Watch, 12 months to June 2021, National Motor Vehicle Theft Reduction Council)
Collisions, windscreen damage and storm/hail damage are the most common reasons for car insurance claims.
(QBE Personal Lines claims for car insurance, 1 January to 31 October 2021)
22,001
22,001 domestic motor claims were lodged following the floods in South-East Qld and NSW in early 2022.
(Insurance Council of Australia, Historical Catastrophe Data, April 2022)
What can it cover?
Motor insurance provides you with extensive protection if your vehicle suffers loss or damage. The exact cover you can receive depends on the policy that you take out. But to give you an idea, here are some of the benefits a motor insurance policy may include:
Cover to repair or replace your vehicle if it’s damaged or stolen.
Cover for the cost of a rental car for up to 14 days, if your car is stolen.
Cover to pay for damage you cause to another person’s vehicle.
For financed cars, cover for 50% of the difference of the finance gap between the insured value and the vehicle’s contract residual value following a total loss.
A replacement of the same make and model if your new vehicle is written off within three years and has less than the specified number of kilometeres.
An automatic 21 days cover on replacement vehicles.
Choice of your own repairer or one from our preferred repairer panel.
Up to $30 million of legal liability cover.
Repair guarantee for materials and workmanship on authorised repairs.
The option to include one excess free windscreen claim per year.
Re-keying and re-coding of vehicle keys if they are stolen.
The option to include hire car cover following an accident. No additional excess except for young or inexperienced drivers if they are named.
Business interruption
Covers the costs of operating your business, like paying staff and covering bills while you recover and rebuild.
Workers Compensation
Covers the cost of your employees’ wages, rehabilitation and medication if they become injured or sick through their work.
What usually isn't covered?
Each policy is different, but generally you won’t be covered if the vehicle is:
- Being driven by an unlicensed driver unless you did not know that the driver was unlicencsed.
- Being driven by you or any other person while under the influence of an drug or alcohol unless you did not know that the driver was affected.
- Being used in any motor sport or time trial.
Exclusions, the excess you need to pay, and limits of liability can vary greatly depending on the nature of the product you are purchasing, the associated risk and the insurer.
Case Study
On her way home from work, Sylvia was involved in a minor accident with a SUV. The accident was her fault. While the other car had minor damage, Sylvia’s car had some serious damage.
After pulling over, Sylvia contacted her insurance broker who took some details and arranged for her car to be towed and assessed. Because her policy also contained a rental car inclusion, they helped Sylvia arrange a hire car so that she could get to work while her car was off the road.
An assessor contacted her the next day, letting her know that her car could be fixed and that her insurance would cover the cost. They arranged to have it repaired at the insurer’s repairer of choice. While she was waiting for her car to be repaired, Sylvia had access to the rental car – with the cost also covered by her policy.