all about insurance
Posted: Sun Nov 02, 2008 5:41 pm
since we all seem to get into accidents, i figured i might as well write up a few things that come to mind, to clear up.
I know it's kinda long, but it's still better than reading through 60+ pages of PDSs. everything is set out in clear sections so it should be pretty easy to find what you need without having to read the whole thing... with that said i still would suggest you reading the whole thing.
Some terms to get used to:
Insured (insd) - the car that's listed on your insurance policy.
Third Party (TP) - the other car/person involved.
excess (xs) - what you have to contribute (pay) towards each claim.
Premiums - what you pay each year for your policy
Rating - this only applies to full comprehensive policies. your rating range from 7 to 1. lower the number the less you pay. (i'll explain this in more detail below.)
different policies:
Full Comprehensive - it covers dmgs to your car, whether you are deemed at fault or not.
Third Party Property Damage - it covers the dmg you cause to other ppl's cars and property (i.e. houses etc) when you are deemed at fault, but not dmg to your car no matter how caused.
Third Party Fire and Theft - it's exactly the same as Third Party Property Damage, but it also covers you for theft of your car (including dmg caused by attempted theft or dmg caused by the thieves while they have your car), as well as dmg caused by fire - fire means must have naked flame, does not include over heating etc.
Compulsory Third Party (CTP) - part of your rego, every registered car on the rd has it, it covers for personal injuries caused by that car to anyone except the driver (with the exception of some insurance companies now, which will cover the driver as well)
* with most Third Party Property Damage (and Third Party Fire and Theft) there will be an "Uninsured Motorist Extension", this will cover dmg caused to your car if you are not deemed at fault for an accident - only if the third party is known (i.e. if it's dmged while parked then tough titties), and they are deemed wholly at fault for the accident, and they are not insured (this means they don't have any property dmg insurance at all, so if their insurance company decides not to pay it because the driver was drunk as a skank, this cover will not apply). Generally speaking the at fault third party will end up paying for it eventually through SPER. keep in mind there's normally a very low limit they set for this (i.e. RACQ - upto market value or $5000, JustCar - upto market value or $3000)
Rating: (also referred to as No Claim Discount)
this only applies to full comp policies. your rating normally range from 7 to 1.
rating 7 - 0% discount, in fact they will actually charge your more than 100%, this normally means you have been very naughty (with your claim and/or traffic and/or criminal history) you should just be grateful that the insurance company is even answering you calls. It is at the discretion of the insurance company if they offer your this or not insure you at all, and what (if any) conditions to apply on your policy (normally means adding a huge xs)
rating 6 - 0% discount
rating 5 - 20% discount
rating 4 - 30% discount
rating 3 - 40% discount
rating 2 - 50% discount
rating 1 - 60% discount
rating 1 for life - you can guess right? just have to point out that if you make a crap load of claims, your insurance company probably won't take the rating 1 from you, but they will add a huge non removable or listed driver xs.
unless you have rating 1 for life. each at fault claim (inc dmg while parked when you dont have TP details, since you can't prove it) will effect your rating, generally dropping... ermm.. raising it (well the rating number goes up and your discount goes down) by 1. so storm claims and hitting an animal will not effect your rating. hitting anything (when there is TP but they are not at fault) will effect it.
Different excesses:
Standard - this always applies to any claim.
Non Removable - this is sometime added to a car because it might be a higher risk car, and/or because it's an expensive car to fix, this will also apply to any claim.
Age - if you are a listed driver and under 25, you get hit with this, different $$ amounts for each age bracket and sometimes also for different sex as well.
Unlisted Driver - if the driver is under 25 and not listed on the policy, the age xs doubles.
Inexperienced Driver - with some companies, if the driver is over 25 but have not been licensed to drive in Australia for more than 2 yrs this will apply.
Listed Driver - there may also be an extra xs for a listed driver, this is normally because you have been naughty with your claim/traffic/criminal history.
Fire/Theft xs - with "third party fire and theft" policies, there may be an extra xs for fire/theft
When and what excesses apply:
With the excesses, it is all added up.
your standard and non removable will always apply for any claim.
When age/unlisted driver/inexperienced driver/listed driver excesses apply - If it is deemed that the driver was in control of the car/situation (i.e. you can't control if it hails or a tree get blown over and lands on your car, but you if you loose traction or couldn't see in a hail storm and drove into bessy the 3 legged cow it's deemed as you are in control, you can't blame it on the storm either since you chose to drive in the first place anyway), you can only get hit for one of either the age, unlisted driver or inexperienced driver xs, but if you have a listed driver xs as well it will be added ontop if that driver was the one driving.
When your excess is waived
When you are not al fault and your insurance company can make full recovery off the TP, your xs can be waived.
What to do when you have an accident:
call the cops if there is more than $2000 worth of dmg, or if the other people involved are being agro or not providing you with the details you need. or if you think there might be a problem with proving who's at fault later on.
if there is a TP, grab their details.
the essentials: Full name, Physical Address (Not a PO box), Rego, Make and model. (if it's a company car, then the company's name, and physical address)
what else helps: phone number, who they are insured with, license number.
if possible/avalible also grab the name and contact details of any witnesses, in case there is a dispute over liability (who's at fault), this helps. it's preferred that the witness was not in any of the vehicles involved and not related or friends with anyone involved, for obvious reasons.
call your insurance company to lodge the claim as soon as it is safe to do so/possdible.
if you are not 110% sure that your car is drivable, then get it towed, your insurance company can organise this. because insurance will not cover for any dmg caused by driving the car after an accident, and also you could get fined and defected by the cops.
What you should have to lodge the claim
your policy number or your rego number.
when and where it happened.
the drivers license details (normally drivers license #, expiry date, type + class, where it was issued etc).
any TP and/or witness details.
if you had to have your car towed, where it's going, who towed it etc.
How the paper trail works:
there's 4 ways of settling liability -
all your fault - you pay your xs, your insurance company pays for the third party's whatever. and if you have full comp they will pay for your car obviously.
all TP's fault - TP or their insurance company will pay for your car. and you should have your xs waived (or refunded if you have paid it already).
Each bare own - if both parties are at fault or this is the only way to solve the sh*t fight regarding who's at fault, you and TP both have to take care of your own dmgs. so you have to pay your xs etc.
no one's really at fault - i.e. weather claims, hitting a roo on the road etc. you still have to pay your standard and non-removable xs (not no driver xs).
when settling a claim there's 2 ways -
if your car is deemed repairable - it will be repaired and any applicable xs not waived will be payable.
if your car is deemed as uneconomical to repair - you should be paid out the market/agreed value with any applicable xs that has not been waived. and depending on the company, some will charge you for the whole yr of premiums (if you pay by the month, the will take the remaining however months' worth of premiums out of the final pay out. and most companies will keep the adjustment of the rego etc.
when determining liability, it is always always ALWAYS what you can prove! actually that can be said about anything to do with insurance. it is always what can be proven that counts, in fact it's whatever that can hold up in a court of law that counts.
Exactly what part of your car is covered
everything that is factory standard for that model of your car (not including any factory options etc), and whatever is listed on your certificate of insurance (the pretty bit of paper your insurer sends you once a year)
and here's my disclaimer:
No sensitive (industry or otherwise) information have been disclosed, all information provided in the above article have been compiled from widely available sources such as but not limited to Product Disclosure Statements, general information provided from varies insurance company websites and certificate of insurances. the above article is intended to be advise only, please consult your insurance company and PDS regarding any of your insurance queries. I have taken every care to insure the information provided are current and correct but I take no responsibility for any event whatsoever resulting from the use or misuse of this information.
Edit: fixed formatting error, a couple of typos, and realised I made a mistake regarding claims involving hitting an animal, all fixed now.
I know it's kinda long, but it's still better than reading through 60+ pages of PDSs. everything is set out in clear sections so it should be pretty easy to find what you need without having to read the whole thing... with that said i still would suggest you reading the whole thing.
Some terms to get used to:
Insured (insd) - the car that's listed on your insurance policy.
Third Party (TP) - the other car/person involved.
excess (xs) - what you have to contribute (pay) towards each claim.
Premiums - what you pay each year for your policy
Rating - this only applies to full comprehensive policies. your rating range from 7 to 1. lower the number the less you pay. (i'll explain this in more detail below.)
different policies:
Full Comprehensive - it covers dmgs to your car, whether you are deemed at fault or not.
Third Party Property Damage - it covers the dmg you cause to other ppl's cars and property (i.e. houses etc) when you are deemed at fault, but not dmg to your car no matter how caused.
Third Party Fire and Theft - it's exactly the same as Third Party Property Damage, but it also covers you for theft of your car (including dmg caused by attempted theft or dmg caused by the thieves while they have your car), as well as dmg caused by fire - fire means must have naked flame, does not include over heating etc.
Compulsory Third Party (CTP) - part of your rego, every registered car on the rd has it, it covers for personal injuries caused by that car to anyone except the driver (with the exception of some insurance companies now, which will cover the driver as well)
* with most Third Party Property Damage (and Third Party Fire and Theft) there will be an "Uninsured Motorist Extension", this will cover dmg caused to your car if you are not deemed at fault for an accident - only if the third party is known (i.e. if it's dmged while parked then tough titties), and they are deemed wholly at fault for the accident, and they are not insured (this means they don't have any property dmg insurance at all, so if their insurance company decides not to pay it because the driver was drunk as a skank, this cover will not apply). Generally speaking the at fault third party will end up paying for it eventually through SPER. keep in mind there's normally a very low limit they set for this (i.e. RACQ - upto market value or $5000, JustCar - upto market value or $3000)
Rating: (also referred to as No Claim Discount)
this only applies to full comp policies. your rating normally range from 7 to 1.
rating 7 - 0% discount, in fact they will actually charge your more than 100%, this normally means you have been very naughty (with your claim and/or traffic and/or criminal history) you should just be grateful that the insurance company is even answering you calls. It is at the discretion of the insurance company if they offer your this or not insure you at all, and what (if any) conditions to apply on your policy (normally means adding a huge xs)
rating 6 - 0% discount
rating 5 - 20% discount
rating 4 - 30% discount
rating 3 - 40% discount
rating 2 - 50% discount
rating 1 - 60% discount
rating 1 for life - you can guess right? just have to point out that if you make a crap load of claims, your insurance company probably won't take the rating 1 from you, but they will add a huge non removable or listed driver xs.
unless you have rating 1 for life. each at fault claim (inc dmg while parked when you dont have TP details, since you can't prove it) will effect your rating, generally dropping... ermm.. raising it (well the rating number goes up and your discount goes down) by 1. so storm claims and hitting an animal will not effect your rating. hitting anything (when there is TP but they are not at fault) will effect it.
Different excesses:
Standard - this always applies to any claim.
Non Removable - this is sometime added to a car because it might be a higher risk car, and/or because it's an expensive car to fix, this will also apply to any claim.
Age - if you are a listed driver and under 25, you get hit with this, different $$ amounts for each age bracket and sometimes also for different sex as well.
Unlisted Driver - if the driver is under 25 and not listed on the policy, the age xs doubles.
Inexperienced Driver - with some companies, if the driver is over 25 but have not been licensed to drive in Australia for more than 2 yrs this will apply.
Listed Driver - there may also be an extra xs for a listed driver, this is normally because you have been naughty with your claim/traffic/criminal history.
Fire/Theft xs - with "third party fire and theft" policies, there may be an extra xs for fire/theft
When and what excesses apply:
With the excesses, it is all added up.
your standard and non removable will always apply for any claim.
When age/unlisted driver/inexperienced driver/listed driver excesses apply - If it is deemed that the driver was in control of the car/situation (i.e. you can't control if it hails or a tree get blown over and lands on your car, but you if you loose traction or couldn't see in a hail storm and drove into bessy the 3 legged cow it's deemed as you are in control, you can't blame it on the storm either since you chose to drive in the first place anyway), you can only get hit for one of either the age, unlisted driver or inexperienced driver xs, but if you have a listed driver xs as well it will be added ontop if that driver was the one driving.
When your excess is waived
When you are not al fault and your insurance company can make full recovery off the TP, your xs can be waived.
What to do when you have an accident:
call the cops if there is more than $2000 worth of dmg, or if the other people involved are being agro or not providing you with the details you need. or if you think there might be a problem with proving who's at fault later on.
if there is a TP, grab their details.
the essentials: Full name, Physical Address (Not a PO box), Rego, Make and model. (if it's a company car, then the company's name, and physical address)
what else helps: phone number, who they are insured with, license number.
if possible/avalible also grab the name and contact details of any witnesses, in case there is a dispute over liability (who's at fault), this helps. it's preferred that the witness was not in any of the vehicles involved and not related or friends with anyone involved, for obvious reasons.
call your insurance company to lodge the claim as soon as it is safe to do so/possdible.
if you are not 110% sure that your car is drivable, then get it towed, your insurance company can organise this. because insurance will not cover for any dmg caused by driving the car after an accident, and also you could get fined and defected by the cops.
What you should have to lodge the claim
your policy number or your rego number.
when and where it happened.
the drivers license details (normally drivers license #, expiry date, type + class, where it was issued etc).
any TP and/or witness details.
if you had to have your car towed, where it's going, who towed it etc.
How the paper trail works:
there's 4 ways of settling liability -
all your fault - you pay your xs, your insurance company pays for the third party's whatever. and if you have full comp they will pay for your car obviously.
all TP's fault - TP or their insurance company will pay for your car. and you should have your xs waived (or refunded if you have paid it already).
Each bare own - if both parties are at fault or this is the only way to solve the sh*t fight regarding who's at fault, you and TP both have to take care of your own dmgs. so you have to pay your xs etc.
no one's really at fault - i.e. weather claims, hitting a roo on the road etc. you still have to pay your standard and non-removable xs (not no driver xs).
when settling a claim there's 2 ways -
if your car is deemed repairable - it will be repaired and any applicable xs not waived will be payable.
if your car is deemed as uneconomical to repair - you should be paid out the market/agreed value with any applicable xs that has not been waived. and depending on the company, some will charge you for the whole yr of premiums (if you pay by the month, the will take the remaining however months' worth of premiums out of the final pay out. and most companies will keep the adjustment of the rego etc.
when determining liability, it is always always ALWAYS what you can prove! actually that can be said about anything to do with insurance. it is always what can be proven that counts, in fact it's whatever that can hold up in a court of law that counts.
Exactly what part of your car is covered
everything that is factory standard for that model of your car (not including any factory options etc), and whatever is listed on your certificate of insurance (the pretty bit of paper your insurer sends you once a year)
and here's my disclaimer:
No sensitive (industry or otherwise) information have been disclosed, all information provided in the above article have been compiled from widely available sources such as but not limited to Product Disclosure Statements, general information provided from varies insurance company websites and certificate of insurances. the above article is intended to be advise only, please consult your insurance company and PDS regarding any of your insurance queries. I have taken every care to insure the information provided are current and correct but I take no responsibility for any event whatsoever resulting from the use or misuse of this information.
Edit: fixed formatting error, a couple of typos, and realised I made a mistake regarding claims involving hitting an animal, all fixed now.