Car Insurance Options for Your Peace of Mind

After you’ve made the large investment in a vehicle for your personal or business use, you must take precautions and measures to protect what you have. It isn’t pleasant to think about what can happen to your car either in an accident or if a thief attacks your property but with insurance you’ll have a plan in place to restore our vehicle to its original condition at a minimal cost. Consider these points as you choose an insurance policy to protect your investment.

car insurance

1. Which options for cover interest you and what types do you need? You can usually choose from comprehensive, third party, fire, and theft cover for your vehicle so that it will be safe no matter what happens to it.

2. What types of other benefits interest you? If you travel on remote roads, you may want to explore emergency accommodation and costs, recovery costs, medical expenses that you can incur in an accident, and trauma treatment in case of a major accident. Another feature that you might want to investigate is cover for your personal belongings while they are located in your car.

3. Do you have a 4×4 vehicle that needs cover for its winching equipment or other unique features that it has? Be sure to discuss special vehicles and their value with your insurance specialist so that you can contract for the appropriate cover.

4. Be sure to ask about SOS services that may interest you for your additional cover. This can include:

• Road assistance

• Home drive assistance

• Route assistance

• Medical assistance

• Legal advice

In order to get all of the cover above, you should know the value of your vehicle so that you can find the right policy for you. You don’t want to be under-insured but you don’t want more insurance than you need either. Researching reputable companies online should provide you with a means to input your personal information into a car calculator system that helps you to determine the value of your car and thus the amount of insurance that is appropriate for the year, make, model, and mileage that is on your car. A good website will take you through a series of steps after which you can speak with an insurance specialist to determine the right policy.

Ask your specialist about good driver records and behavior, what some of the most common claims are, and discover red flags that indicate your current insurance isn’t suitable.

To have peace of mind as you drive to and from work and to your social engagements you must have the correct type of car insurance to protect both you and your investment adequately.

Which Insurances Should You Have?

Insurance isn’t one of those things that makes it to the top of your priority list. However, a large portion of your money is devoted to insurance each month. With this being said it is important to know what types of insurance are worth buying into and which are wastes of money. Not having a solid insurance plan can mean financial disaster for both you and your family. Having a reputable agent or insurance company such as CIA Insurance Ltd is a good place to start when searching for insurance. Working with an insurance company that is not reputable can mean the same thing as not holding insurance at all.

One type of insurance that is a good idea to avoid is divorce insurance. Sure it is true that more than 50 percent of marriages will end up failing but this does not necessarily mean that you need divorce insurance. One such reason is that it is said entering into a marriage when your partner knows you have divorce insurance is a bit of a bad start and can possibly cause problems in your marriage immediately.

Car insurance on the other hand is in many cases illegal not to have. Additionally, a car is an asset that is extremely likely to need insurance coverage at least once in its life time. Not having adequate coverage can mean a huge financial strain on your pocketbook.

At the end of the day, insurance is meant to provide peace of mind for you and your family. Worrying about an asset or your health or not being able to cover a misfortune can mean financial ruin and many nights of lost sleep for you.  If you are unsure how much coverage you should have from a particular type of insurance, it is always advised to seek the guidance of an experienced professional in the field.

Protect Your Main Asset – You Ability to Earn

Everyone knows the importance of protection and being protected financially.  Most people have some sort of insurance whether it’s life insurance or disability insurance.  One great option that is starting to get more popular is income protection insurance. The beauty of income protection is that it provides you with 75% of your income and unlike a traditional disability protection there is no list of events for which you would be paid out in the event of a claim.  This means that virtually anything that prevents you from working can be claimed, which will ensure financial stability for you and your family.  When life throws challenges in your face the most well prepared people are usually the ones who come out unscathed.

I’ve worked with a number of dentists in my day and they can provide a great example of why income protection is a smart decision.  One of my friends, Eugene, owns his own high volume oral surgery practice in addition to performing contract services several times a week in other offices.  A wayward shot on the golf course left him with 2 broken knuckles and a broken bone in his hand rendering him incapable of performing surgery for 3 months.  Luckily, because of his network he was able to get some colleagues in to his main practice and perform surgery, which kept the practice solvent.  The contract work would have been a different story but fortunately for him and the 2 daughters he was putting through college, he had income protection insurance, which covered 75% of that income.

I like this example because people often say; “I don’t work in manual labor so income protection is an unnecessary expense.”  But, you would be hard-pressed to think of an occupation that doesn’t use their hands in some capacity.  What happens to the long haul trucker that breaks his foot or tears his ACL?  The lifeguard who suddenly finds herself battling a serious illness?  In all of these cases worrying about finances is an added stress that, if anything, makes it more difficult to rest, heal up and get back to work.  The peace of mind that knowing you have 75% of your income coming in during this time means you and your loved ones have one less thing to worry about.

Now each situation is a little different and there are several variables that go in to what your monthly premiums will be for this type of protection.  A policy that covers you for 2 years of not being able to work with no waiting period after a claim is filed for a smoker in a manual labor field will cost more than one with 6 months of coverage and a 1 month waiting period for an office worker with no risk factors.  There are several experts out there, bottom line, go find one who can help you decide which options are best for you.

Do I need separate insurance for my car, boat and bicycle?

An increasing number of Australian households own more than one vehicle, whether it be a car, boat or bicycle. Having adequate insurance is vital to protect yourself and your family in the event of fire, theft or an accident. However the insurance market can seem like a confusing bundle of products to the untrained eye. I’ve tried to get to the bottom of the problem to see if one combined policy can cover everything, or whether or its best to opt for individual policies instead.

Initially it’s useful to take a closer look at what standard car, boat and bicycle insurance will cover. After all, do you even need it in the first place?

Car insurance

As you’d expect car insurance is compulsory in Australia. It covers you and your passengers in the event of an accident and is a legal requirement for all drivers.

Different levels of car insurance are available. Comprehensive insurance is the most thorough and will cover damage to your vehicle along with any damage you cause to a third party. If you’ve taken out a car loan you’ll be required to opt for comprehensive cover to protect the interests of your lender. However if you own the car yourself you can opt for lower levels of cover such as third party insurance, which is generally lower in price. Unlike comprehensive cover if you’re deemed to be at fault in any accident you won’t receive any help with the costs of repairing your vehicle.

Boat insurance

While boat insurance isn’t compulsory in Australian waters, many harbours and marinas won’t allow you to use their facilities unless you can demonstrate evidence of at least third party cover. The excessive cost of boat repairs and potential compensation claims following an accident should be worrying enough to ensure any responsible boat owner takes out appropriate cover for their craft.

Specialist boat insurers often include useful additional benefits such as 24 hour emergency assistance and cover for the discharge of any fuel.

Bicycle insurance

There’s no requirement for compulsory bicycle insurance in Australia, which applies even for power assisted electric bicycles that are becoming increasingly popular. However today bicycles are becoming more technological and expensive than ever, making them an costly item to replace following a theft. Even when proper security measures are taken, there’s an extremely high incidence of bicycle theft in Australian cities, making insurance an essential product for any conscientious cyclist.

Bicycle insurance can be taken out on it’s own or added to your home and contents insurance. It usually covers theft, accidental damage and protects you in the instance of a claim for liability following an accident.

Should I take out cover together or separately?

If you’ve decided to take out car, boat and bicycle insurance you become a highly attractive customer for insurance companies. You could benefit from cheaper premiums if you choose to go with the same company. Some customers reported their premiums were lowered by 20% when they took out multiple policies with the same insurer.

However remember to shop around as specialised boating insurers will often include benefits you won’t get elsewhere, such as emergency assistance. The cheapest deal may save you money, but it’s not always the best option. Be sure to read your policy details thoroughly before signing on the dotted line, and if you’re struggling enlist the help of a broke to find you a deal that best suits your needs.

Your Circumstances Will Change for Better or Worse: Protect Yourself with Insurance

As humans, we think, perhaps subconsciously, that whatever we are experiencing now we will continue to experience. That is why when people work overtime for a long enough period of time, they quit being careful with that extra money and instead allow income creep to take place. They go out to eat more frequently, they buy themselves more clothes and some treats such as a comfortable recliner chair. When the overtime ends and they go back to their old salary, suddenly they can no longer make ends meet.

Mortgage Insurance Offers Protection

This is also why people do not take out insurance that may help protect them. If you are planning to become a homeowner or are one now, do you have mortgage insurance?

While life may be fine right now, and you have enough money to make ends meet plus put money away, what if your circumstances change? What if you lost your job or got sick with a serious disease such as cancer? How quickly would you run through your savings? What if you are injured and are no longer able to perform your job?

Your situation can change in less than a minute. Dawn, a Genworth employee who assists those with mortgage insurance who are experiencing difficulties paying their mortgage, explains how she can help people stay in their homes.

When your life changes drastically, the last thing you want to worry about is losing your home, uprooting your family and having to move.

Other Types of Insurance to Protect Yourself

The Huffington Post also mentions several other important types of insurance that you should have, especially if you are the head of household or your family relies solely on your income.

Disability Insurance–If you are a full-time employee, this insurance is likely one of your benefits. However, more and more people are self-employed and own their own business or freelance. For instance, if you are a writer, what if you sustain a head injury and are unable to work for several months? You will have no money coming in unless you had the foresight to take out disability insurance.

Long-Term Care Insurance–Again, if you are injured and need someone to come to your house to care for you, that care can be very expensive. Long-term care can help you pay these expenses while getting the quality care you deserve.

The old saying is prepare for the worst, hope for the best. If you are diligent about taking out the appropriate insurance for your situation as well as having an emergency fund, you should be able to handle most difficult financial situations that come your way.