3 Common Car Insurance FAQ (Answered by Experts)

Car insurance can help with the unexpected cost of an accident, theft or other covered damage. Understanding the price, the cover and the claims process makes the paperwork easier to navigate. Here are three common questions Australian drivers ask.

1. How are car insurance premiums calculated?

Your premium is the price you pay for insurance. Insurers consider factors such as your vehicle, who drives it, where it is kept and how it is used. The level of cover, optional benefits and excess can also affect the price.

There is no single formula used by every insurer. Claims costs, repair costs, taxes and other business costs also influence premiums. Choosing a higher excess may lower the premium, but increases your contribution if that excess applies to a claim. Read an insurer’s explanation of premium factors.

2. What does my car insurance cover?

In Queensland, compulsory third party (CTP) insurance comes with vehicle registration. It covers injury liability, not damage to cars or property. MAIC explains how Queensland CTP works.

• Third party property damage: covers damage you cause to other people’s vehicles or property. It generally does not cover your own car.
• Third party fire and theft: adds cover for your car being stolen or damaged by fire.
• Comprehensive: provides broader cover for your own car and damage to others, subject to the policy’s limits and exclusions.

Check whether your car is insured for an agreed value or market value. An agreed value is a figure set with the insurer; market value reflects what the car was worth before the incident. Read the Product Disclosure Statement and your policy documents for the actual cover. Compare the cover types with Moneysmart.

3. What should I know before making a claim?

Choice of repairer: when claiming under your own policy, check whether you can choose your repairer or whether the insurer uses its repair network.

Excess: being not at fault does not automatically remove your policy excess. Waiver conditions vary, so confirm them with your insurer. Keep the other driver’s details, accident photos and any claim number handy. Moneysmart explains the claims process.

No insurance: if another driver caused the accident, you may be able to recover repair costs from them. Their insurer may handle the matter, but responsibility and the amount claimed still need to be established.

How Flow can help: for eligible not-at-fault claims, we can coordinate your claim and repair, from first call to handover. Share your accident or claim details and we’ll explain the next steps. Explore our repair services or call (07) 3354 3711.