Excess or Deductible
These things mean the same thing. In the event of a claim you will be asked to pay a pre-determined amount either to the repairer or the insurer. The standard excess may be increased on your policy due to your age (eg. under 25 years old) or the driver being fully licensed less than two years. If the claim was not your fault and you can satisfy the insurer’s requirements of identifying the third party responsible, the insurer may waive your contribution or refund it to you once they make a recovery of damages from the other party.
No claim bonus rating
A feature of comprehensive insurance polices, you are rewarded on an ascending scale for each successive year without a claim (up to a maximum of 6 years). If you do claim, your bonus rating is reduced, although if the claim was not your fault most insurers will leave your bonus rating the same. Once you’ve reached the best rating (rating 1), some insurers will allow you the option of paying an extra premium to ‘protect’ your rating for one at fault claim. A rating can only start to commence when you are noted on an insurance policy as a driver or take out a policy in your own name. Therefore the minimum age for any driver to obtain a rating 1 is 22 years old.
Extended third party property damage
This option is not provided on all policies and is generally limited to a few thousand dollars. It covers you in the event of an accident that’s not your fault, where the other person who caused the accident has no insurance cover. This is quite handy, as you would generally be seeking the other party’s insurer to pay for your damages.
Market value or Agreed value
Most policies provide settlement of a total loss claim (vehicle write off) on a ‘market value’ basis. This means you are entitled to an amount representing the cost of a vehicle of similar make, model, age and condition. Or, if the vehicle is less than one or two years old, many insurers will replace it with a new vehicle of the same make and model that you lost. An ‘agreed value’ cover agrees the value of the vehicle with you at the commencement of the policy term, then if the vehicle is a total loss that agreed value will be paid to you. This type of cover is especially useful for vintage, classic and above average condition vehicles. The premium payable will generally be more than for the same vehicle covered for market value.
Agreed value is especially useful for vintage, classic or specialist and high quality vehicles
Excess free windscreen cover
This option is generally available on comprehensive policies and allows the policy holder to pay an extra premium to allow for one windscreen claim that does not affect their no claim bonus or cost them an excess.
Hire car cover
This option is generally available on comprehensive policies and allows the policy holder to pay an extra premium that will allow them to obtain a hire vehicle (up to a pre determined cost and number of days) in the event that their vehicle is stolen or damaged.
Restricted driver options
Some policies will give the option for a premium reduction if you elect to specify one or two drivers, who will then be the only drivers allowed to drive the vehicle. Another option generally available is if you elect to restrict the age of the drivers to those only over 30 years old. Premium rating is based on such factors as the type of vehicle, age of the driver, driving experience, occupation, location and intended use of the vehicle. Modifications and accessories of the vehicle must be disclosed, as well as any driver, fines, penalties or convictions.