Insuring your car is vital. Not only are you protecting your important asset it is a must when financing a car. With all driving on the roads, you want to make sure that you are covered and insured at all times. Regardless, if you have a loan/mortgage on the car or you own it outright; any accident/incident can potentially leave you out of pocket. Needless to say, for most Australians, it can impact their daily work schedule as well.
That’s where car insurance is helpful and recommended to every car owner. Did you know that you can get yourself covered in 2 ways when selecting a comprehensive insurance?
Agreed Value – Agreed compensation amount is fixed between the insurer and the insured. Should anything happen to your car, you will get the sum as agreed on the policy. We help our clients in making the right decisions in getting their car insured. If any customer has purchased a car for $40k and paid $5k as a deposit, then the client shouldn’t be insuring the car for the acquisition price of $35k as it will mean that client will be out of pocket for $5k. The client would be better off in looking for more options.
There are a few companies those who allow you to insure your car for more than what it would sell on the market. But this comes at the cost of the extra premiums every month.
Market Value – As the name suggests, you get insured for the amount as to what your car would sell in the market. Compensation amount in any event of accident/incident will depend on various factors such as the length of the policy running. The main thing to remember is that depreciation will kick in as soon as you own the car as this will affect the amount you get paid by the company.
On the positive note, this insurance can be little less expensive (case by case scenario) compared to the agreed value insurance.