Experienced car owners can be well versed with the terminology used by vehicle insurers because of the purchase or renewal cycles they confront year after year. However, new vehicle owners can find understanding the terms challenging due to the number of conditions involved. In times of confusion, a vehicle insurance holder can always reach out to their insurer to get their doubts clarified.
If you don’t have a vehicle insurance policy already and are considering purchasing the best car insurance, quickly search online to find popular car insurers in NSW. Most insurers commonly provide third-party property damage, third-party fire and theft, and comprehensive car insurance policies. The comprehensive policy is considered the best for many people because of the broader-ranging coverage it offers a vehicle.
While you reflect on purchasing vehicle insurance, read this article to know the answers to some common queries relating to car insurance.
Q1: What do you mean by an “at-fault” claim?
A: An “at-fault” claim is a claim where your vehicle insurer can’t recover the compensation for your vehicle loss/damage from another party, either in part or whole. This can be due to:
- A road accident where the driver of your insured vehicle is partially or entirely at fault, and there is sufficient evidence to prove their/your contribution to the accident.
- A road accident, where you can’t prove that the opposite party was at-fault and your insurer is unable to gather evidence against the other party’s involvement or details (full name, residential address, car registration number, etc.) of the guilty party.
- Your vehicle is damaged due to fire or accidents that involve animals.
- Your vehicle is damaged or lost due to theft, attempted theft, or vandalism.
- Your vehicle is damaged due to harsh weather events like floods, winds, and hail storms.
Remember that when you raise an at-fault claim you must pay the applicable excess/es and face the removal of your no-claims discount during the next renewal period. However, a no-claims discount may not be affected when you make a claim because of extreme weather events, fire or theft – though this does depend on the insurer.
Q2: Will I be given my spouse’s driver rating if I am buying car insurance for the first time?
A: Yes, it is possible. A vehicle insurer may give you your partner’s driver rating when you are taking out a policy for the first time. However, if your insurer does allow this, you must have been a joint holder or regular driver on your spouse’s policy over the previous corresponding period to be entitled to this benefit.
Q3: Are the no claims discount and loyalty discount one and the same?
A: The no claims discount is the concession you can get on premiums during policy renewal if you haven’t made an at-fault claim over the previous insured year. The discount increases every year you don’t claim until it hits a specific limit. The more years you don’t raise a claim, the more your no claims discount will be.
In contrast, a loyalty discount is a concession a vehicle insurer can offer their policyholders for faithfully sticking to them. The number of items you insure with your insurer and the years you have been associated with them will determine the amount of discount (until a specific limit) you can avail of.
These are some of the regular queries that insurers receive on a daily basis. You can contact the insurer for clarification if you have other questions relating to a vehicle insurance policy’s terminology. If you want to buy the best car insurance, you will need to shop around a little bit. Also, know that comprehensive car insurance can provide your vehicle with wider cover even if it means you have to spend a little more. So, consider your vehicle insurance options before hitting on the sign-up button.