Things to consider before buying car insurance in Melbourne

buying car insurance in Melbourne

Before you even start to consider buying car insurance, the most important thing to consider is why car insurance is important?

Why should you buy car insurance?

One thing that the Covid Pandemic has taught us that you can never be prepared enough. You can never know what curveball will life throw at you the next minute. But, having something you can depend on in the hour of need is a blessing. Car insurances are the same. Buying car insurance will help you manage any uninvited circumstances you may have to deal with. However it’s important that you do your research first and then buy the best suited insurance for your car. Here are the 10 things you must consider before you buy a car, taxi, rideshare or Uber insurance in Melbourne.

10 things to consider before buying car insurance in Melbourne:

  1. State guidelines

In Australia (Melbourne) it is compulsory to get a CTP insurance for your vehicle before you even start driving. There are certain additional guidelines along with the general guidelines of CTP, which differ in different states. This factor should be taken into consideration before you buy a car insurance policy. 

  1. Coverage

Different insurances cover for different kinds of losses. It is very important for you to understand that the insurance you are choosing covers for things you consider are important. You will have a wide range of insurances to choose from which may cover the expenses caused due to a theft or a fire. (change)

  1. Premium amount

It is very important to understand the needs and probability of risks on the road well in advance. This will help you in the process of finding the right premium amount. Comparing the quotes of various car insurances online will help you in making the right choice as per the needs and affordability. 

  1. How your car is valued in the market

The car’s current market value calculated by eliminating the depreciation amount is termed as Insured Declared Value (IDV). It is important to consider it, as it is critical in deciding the compensation amount in case of a mishap.

  1. No claim bonus

No claim bonus means the relaxation you get on the premium amount if you don’t make a claim for a certain amount of time. You should consider reading the insurance policies thoroughly before making the purchase. No claim bonus can only be availed at the time of renewal of the new policy and is a percentage that is offered for every claim-free year with certain limits.

  1. Reputation of the company

Some companies have a lot to offer but none to deliver. So, another important factor is to check the market image from whom you are planning to buy the insurance plan. This research will help you in understanding the reliability of the company and acquaint you with the company’s claim settlement background.

  1. Add ons

Some car dealers offer add-on insurance when you buy a new or used car. These products are often not good value for money and just ways to extract some extra money from your pocket. Whereas some insurances genuinely offer some great added benefits that come with buying a particular plan. So read the offer document clearly before investing. 

  1. Exclusion

Exclusions are specific factors or situations that are not covered under insurance plans. It is important to go through the policy documents well in advance before buying. This will help you to avoid any unpleasant surprise during the claim process.

  1. Zero depreciation cover

Zero depreciation cover comes with additional cost of your car insurance. If you have this cover, then upon a claim you will get the full coverage for the parts replaced without any deduction for depreciation. Although your premium will be on a higher side but you will reap the benefit as you will get complete reimbursement in case of an accident.

  1. Network garage

The whole purpose of a car insurance policy is protecting you from any financial emergency in case of any damage your vehicle suffers. And one of the best ways to avoid such circumstances is by getting a cashless service. However, car insurance companies offer such services only if your vehicle was repaired in a network garage. Therefore, look for companies with maximum network garages available in their list. It would be best to look for a workshop close to the place you live. This will not only help you get immediate assistance but will also cover you for the losses.

Melbourne Rideshare Club is a group of experienced individuals working in the field of ridesharing for years. Melbourne Rideshare club is a non profit organization committed to help the members of the club. MRC focuses on providing you all the help needed so you can get your vehicle on the road in time.

To make a claim you have to report the accident within the first 48 hours of the accident. You can simply go to the website and make a claim by filling up a form or simply report the incident.

The forms are of two types:

  1. Accident Claim Form
  2. Report only form

Or you can visit the nearest MRC office and take help of the executives in filling up the form and making a claim.