Is it Illegal to Drive Your Car Without Insurance?
No matter where you live globally, if you drive a car you need car insurance. Driving without car insurance is risky for you and other drivers on the road and depending on where you live may be illegal. There are over ten things to consider before buying car insurance anywhere including in Australia. Listed below are at least seven factors to consider.
Insurance of any kind is put into place to protect you and your assets. In some instances, if you do not carry insurance such as car and homeowners the companies that carry your loan can force an insurance policy on you and it may be higher then what you want or can pay. Forced insurance may not be the type of policy you would buy yourself. Make sure that you have the insurance policy you want and avoid lenders from forcing insurance on you.
The Factors that Set Your Insurance Costs
1. Did you know that the following issues raise your insurance costs?
- The older you become the higher your car insurance rates rise.
- A poor credit score means you pay a higher insurance cost.
- Tickets and claimed accidents raise your insurance cost.
- The more luxurious and expensive your car the higher your insurance cost.
- Children, driving age always raise insurance costs.
- Married vs single impacts insurance.
- Gender makes an impact.
- The location where you live may raise your cost.
- Car model
- Kilometres drove per year
- Car modifications
2. Know What You are Paying for In Your Insurance Policy
Never overlook reading every word within your car insurance Australia policy. Know what you are paying for and what coverages you have in the event you must use your policy. Insurance policies are confusing, however, reading your policy brings to light what it can do for you in the event you need the benefits. Are you covered for rental cars? Does your policy cover your engine, wheels, tires, windows, mirrors, lost or broken keys, lock service, roadside assistance, rental car coverage in the event your car goes into a shop, and the undercarriage?
3. Think Twice about Standard Insurance Coverage
While standard insurance coverage or the minimum coverages your lender agrees to generally cover very little and the out-of-pocket dollars are higher the idea of cheap car insurance can be enough to make up for this risk in most people’s heads it doesn’t always have to be the case. There are many things that are excluded from the standard coverage. This type of insurance gives you little to no protection as you travel on the road.
4. Towing, a Seldom Used but Vital Coverage
You may think that roadside assistance and towing is likely not to happen, so you do not want to pay for this extra pert. But, when least expected you encounter a breakdown on the road and are short on money for towing. Towing is expensive and can run upwards and well over $100.00 or more depending on how far your car needs towing.
5. Rental Car Insurance
If you are a frequent traveler and rely on rental cars you already know how determined rental agencies are in getting you to pay for added insurance coverage by buying their insurance for the duration of your rental contract. If your private insurance coverage already has your coverage for rental cars you may think that it is a waste of your hard-earned money to buy the additional insurance coverage from the rental company.
As you approach your rental counter to be wary of the salesperson trying to sell you additional insurance that is costly. Be wary of the rental company telling you that their insurance is mandatory and your insurance is not valid. This is not true. It is a good idea to speak with your agent and have this issue clarified before you rent a car.
6. Be Wary of Stand-Alone Insurance
Stand a-lone insurance policies protect you or your business for a specific risk for a specific cost. Stand-A-Lone insurance is not an insurance policy that provides broad coverage for several different risk factors and events. While stand-a-lone insurance may be sufficient for some it will not cover you in the ways that you likely need coverage.
7. Buying Car Insurance? Check All Options
You, like many other people probably think that if you buy car insurance from a well-known insurance company and one that is found globally, they will take care of you and your insurance needs. Do not be so certain. Check rates because insurance costs go up and down like the stock market. The insurance you have currently may not be covering all you need and maybe twice as costly as another company.
Always review your costs and benefits when your insurance renews. Make sure you are getting the best benefits and the best rate. Insurance companies that are good this year may be a poor choice next year. Make sure your company is regulated by reviewing the wording in your policy and the disclosure statement on your policy.
I’m a 20-something stay-at-home mother and wife. I have an amazing husband, a beautiful daughter, two loving dogs, and a lazy cat. I wouldn’t change my life for anything! I love to read, listen to music, cook and blog!
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