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Amanda Causby

Account Executive

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Kalum Wickramasinghe

Account Executive

According to the Australian Bureau of Statistics recent census, there are approximately 19 million registered vehicles in Australia with over 100 Australian Prudential Regulation Authority (APRA) registered insurers, most competing for your motor business.

 

It can get a little confusing finding the best possible coverage.

 

There are 4 common types of insurance covers in Australia.

 

1. Compulsory Third Party (CTP)

CTP insurance provides compensation for people injured or killed when your vehicle is involved in an accident.

CTP insurance is compulsory in all states of Australia. You cannot register your vehicle without having a policy in place. In most states, your CTP is included with your registration, however, in NSW you must purchase it as a separate step prior to renewing your registration.

 

2. Comprehensive Insurance

Comprehensive Insurance covers damage to your vehicle including theft, collision, malicious damage, weather related damage as well as third party property damage.

 

If you have elected to insure your motor vehicle for comprehensive cover, the insurer will give you the option of market or agreed value.

 

Market value means the cost to replace your vehicle with a vehicle of the same make, model, age and condition immediately prior to the loss or damage, but excluding costs and charges for vehicle registration, compulsory third party insurance, stamp duty transfer, dealer warranty costs or transfer fees.

 

Agreed value means the amount which the insurer has agreed to insure your vehicle for and is printed in your current insurance schedule.

 

Agreed value policies may cost a little more than market value but provide you with a certainty of what amount you are insured for.

 

3. Fire, Theft and Third Party Property Damage

Fire, Theft and Third Party Property Damage is a limited form of insurance that only covers fire damage to, and theft of, a vehicle. It does not cover collision damage to a vehicle. Third party property damage is also covered.

 

4. Third Party Property Only

As the name implies, Third Party Property only covers damage caused by the policyholder’s vehicle. It does not provide cover for the policyholder’s own vehicle. This product is generally only taken out by consumers with a low value vehicle, protecting themselves against damage to other motorists.

 

Prestige Motor Vehicle Insurance

Some insurers specialise in prestige brand vehicles such as BMW, Mercedes Benz, Jaguar, Porsche and other top of the range vehicles. The covers offered are similar to personal motor insurance policies but may include additional benefits that are broader such as a brand new replacement car for vehicles up to 2-3 years old.

 

Other specific benefits under this type of cover may include:

  • Delivery of your vehicle to you after repairs
  • Comprehensive limited kilometres cover for those vehicles driven on weekends only in return for a premium reduction
  • Automatic temporary hire of a replacement vehicle following an accident

 

Our office has access to a range of prestige insurers and can advise you accordingly.

 

Motor Fleet Insurance

Medium to larger businesses that have a fleet of vehicles may prefer one policy to group all their vehicles together. This option makes sense from an administration and financial perspective.

 

These types of policies will offer a range of additional benefits as opposed to insuring the vehicles individually on a Commercial Motor Policy.

 

Some of the benefits may include:

  • Total loss of encumbered vehicles
  • Removal and delivery expenses if your vehicle suffers loss or damage
  • Retrieval costs if your vehicle unintentionally becomes immobilised
  • Expediting expenses such as immediate repair costs
  • Employee’s personal property
  • Automatic additions of vehicles
  • No fault excess
  • Automatic additions and deletions of vehicles during the insurance period

 

From a negative perspective, several claims during the year could result in a premium increase on the whole policy. Your broker can best ascertain how to handle your fleet to maximise coverage and premium.

What can go wrong?

A sales staff member working for a company with a fleet of vehicles was involved in an accident whilst driving his Toyota Camry. The police arrived and although the staff member had an alcohol reading of 0.12%, well above the acceptable alcohol limit, as the owner of the business has a strict driver policy and the vehicle was financed, the insurer paid the claim in full.

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