Comprehensive Car Insurance

Comprehensive car insurance is required by law whenever the car loan is a secured personal loan, or to say it another way, the item you are financing is taken as security. If the item, and we will use a car as an example is involved in an accident, comprehensive car insurance will pay for the cost of repairs. If the car is written off in an accident or stolen, comprehensive insurance will cover the amount the policy holder is insured for in the policy, regardless of whether the accident is their fault or not.

It is important to undestand that every insurance company has different "inclusions" and "exclusions", or to put it another way, what is covered and to what extent, and what is not covered. They have different underwriting criteria also.

Some insurance companies for example increase the premium, or put on a "load" factor for v8 engine, or cars they call "performance", or "luxury". Some put a loading on based on the insured's age; i.e. under 18, or under 25.

Comparing "apples with apples" is very difficult, even for professionals.

Changes to insurance laws about disclosure have meant that every insurance company, or broker has to allow you to read something called a "PDS", or product disclosure statement, that essetially gives you the significant benefits, as well as the limitations of their product, so you can make an 'informed' decision as to whether their product and price is best for you, before you commit to it.

Comprehensive car insurance can be, and often is included into the finance, but remember that your covered for the first year of comprehensive insurance only, and that you are paying for that first year in the finance for the term of the loan; including interest.

This is why many people choose to use an Insurance Broker, who are familiar with many insurance companies comprehensive car insurance policies, and can explain the benefits and limitations to you for each one.

Many comprehensive insurance companies also specialise with comprehensive insurance for different goods. Some offer great comprehensive insurance products for marine vessels, such as a boat, but don't have a comprehensive insurance product for motorbikes, and their comprehensive insurance premiums for cars are higher than the rest of the insurance companies in the market, although the coverage may also be a lot more comprehensive; i.e. cover more items, and for greater amounts.


Take the time to listen to the advice from a professional, or from a good broker, and read the information in the pds's, so you are more knowledgable, and can better make an informed decision.

You can also compare car insurance online, where you can not only compare car insurance companies, but also compare your current comprehensive car insurance, policy because chances are, you are paying too much.