Many people in Australia are unaware of the advantages of having car insurance. The last thing you want to discover after an accident is that your insurance does not cover everything or that it has lapsed. To prevent this from happening, consider the following car insurance add-on features.
Guaranteed Asset Protection (GAP) Insurance
Car Insurance Victoria is a necessity for all Australian drivers. However, with the proliferation of new car models and prices on the rise, it is critical to be aware of some additional benefits of having Car Insurance. Guaranteed Asset Protection (GAP) insurance provides peace of mind if the depreciation of your vehicle exceeds the amount owed on your loan.
This is an excellent coverage option. It is because if you need to replace your vehicle due to an accident or disaster and cannot afford to do so out of pocket, GAP will pay the difference between what you still owe and how much your totaled car was worth at the time of loss. It’s yet another way insurance protects you from unanticipated expenses that can wreak havoc on your finances.
Tyre and Rim Insurance
If you’re a driver who travels frequently, tyre and rim insurance are a must-have. Tyre insurance covers damage to your tyres as well as their replacement if they get stolen or punctured. If the worst happens, it could be costly if you don’t have insurance. This is especially true if you’ve rented a car and don’t have comprehensive car insurance.
Rim Insurance typically covers replacement costs if your rims get damaged beyond repair due to careless driving or vandalism. It’s also essential to check whether your vehicle requires alloy rims before purchasing this add-on; otherwise, it won’t be of much use.
Mechanical or Motor Breakdown Insurance
This is yet another handy add-on if you intend to do a lot of driving. Mechanical breakdown insurance covers the cost of repairs if your vehicle breaks down due to mechanical or electrical failure, even if the loss is not the result of a traffic accident.
It will pay for recovery, replacement transportation, and lodging if you cannot drive your car. Check out this one if you want to make sure your vehicle doesn’t break down on longer trips.
Loan Termination Insurance
Loan Termination Insurance is one insurance add-on that can help if you are still reeling from the financial fallout from purchasing your car. It pays out if your vehicle gets repossessed or written off within three years of losing your job.
It will also cover you if you need to return your car due to an injury or illness. Furthermore, it’s important to note that this isn’t standard coverage. It will only pay out if the bank repossesses your vehicle, so make sure you’re eligible for it before signing up.
Windshield Glass Insurance
Windshield glass insurance is another critical add-on benefit for car insurance. It protects your windshield and windows from damage caused by accidents.
So, you can drive away without worry, knowing that if someone leaves a stone chip in the road or if you come across an animal on the road, they will take care of it. Vandalism is also covered under this policy, but only from within the vehicle. This means that someone would have to break your window to vandalize your car from the outside, which is unusual.
Consumer Credit Insurance
If a lender finances your car, this add-on protects you against repossession. In this case, you should look into Consumer Credit Insurance.
It will pay off your debts if you lose your job or become ill and cannot work again. It works in conjunction with debt protection insurance, which is becoming increasingly important for anyone who has any debt that could spiral out of control if the wrong thing happened.
Roadside Assistance Add-ons
Roadside assistance add-ons are just one of the many benefits available with Australian car insurance. They’re intended to give you peace of mind, so you can travel without fear of becoming stranded or breaking down.
It’s not just roadside assistance; they also offer breakdown coverage, replacement keys, and even lost luggage. True, these services are usually included at no extra cost in comprehensive car insurance policies. Still, it’s rare to get more than one year of coverage for free.
Personal Effects Insurance
Personal effects cover one of the most critical car insurance add-on benefits because it covers your items in your vehicle regardless of where they came from.
So, if your bag, wallet, or the digital camera gets stolen from the glove box, you’re covered. It doesn’t just protect valuables; it also covers personal liability. Suppose a passenger in your vehicle gets involved in an accident and sues for medical expenses. In that case, this coverage will help to alleviate the financial burden.
Depending on your needs, there are several car insurance add-on benefits to consider. Mechanical breakdown cover, loan termination, windshield glass cover, or any of the other options will help to give you some extra peace of mind while driving around.