Terms in a Car insurance Policy?

So you have recently bought your dream car and can’t wait to get the behind the wheels and yap its engine? But before you hit the road, are you sure you are comprehensively covered against any mishap? You may have heard the terms premium and excess, but do you truly understand what a good car insurance policy looks like, and how to choose the best policy?

Let’s looks at the some of the key terms you will see when taking out a car insurance policy, which will make the daunting task of buying car insurance easier.

Windscreen cover

A good policy will cover the repair or replacement of your windscreen, windows and sunroof up to the market value.

Personal Belongings

In case of accident, fire or theft, your personal belongings worth $200 or should be must be covered for loss.

Loss or Theft of Keys

If the keys to your car, alarm, immobilizer, ignition, steering lock or garage door opener are stolen or lost, a good car insurance policy will pay for the cost of replacement.

Car Rescue Cover 

In case of an accident that leaves your car immobilized, the policy will cover the cost of moving the car from the accident scene to the nearest repair shop.

Courtesy Car

If your car needs repairs after an accident, you should be provided with an alternative vehicle as per the car insurance policy.

Repairs Guaranteed

The insurance policy will cover any repair work needed, carried out by their approved repairers.

 New Car Replacement

In case of theft or damage after an accident or fire, your car insurance may replace your car with a brand new vehicle of the same model (if the repair cost is above a specific percentage of the manufacturer’s suggested retail price).

Stereo and Satellite Navigation

The car insurance policy should cover for damage or loss to your stereo or satellite navigation tools, up to the market value.

Accident Transport

In case of an accident that leaves your car immobilized, the policy should arrange for you and your passengers (up to seven) to travel from the accident scene.

Hotel Expenses

If you cannot continue your journey after an accident, the car insurance will  pay usually $250 or more for the cost of staying in a hotel for you and your passengers.

Total Loss Courtesy Car

If the damage to your car is beyond repair, the insurance will you with a courtesy car for a limited time whilst your claim is being settled.

Breakdown Cover

It is the assistance in the event of car breakdown where it needs repair.

Child Car Seat

The child car seat will be replaced, in case of accident, theft or fire.


 What to Watch Out For….

The Excess

It is the amount you will pay in the event of a claim for damage. Typically the lower the excess – the higher the policy costs.

Windscreen Replacement Excess

It is the amount of money you have to pay for a claim to replace your windscreen.

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About the Author: Andrew