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What is and isn’t covered by your car insurance can depend on the type you have. For instance, comprehensive car insurance can cover repairs to your car after an accident, while third party property insurance won’t. 

There are also just some things you’re unlikely to ever get cover for. This can include illegal actions, like crashing your car into a fence while driving drunk. Even if you have third-party property insurance that would normally cover this kind of damage, if you were driving under the influence, your claim is likely to be rejected. The same goes for if you’re driving an unregistered car or driving with an expired licence.  

Damage to your car caused by general wear and tear, like your engine finally giving up the ghost, is also unlikely to be claimable. 

Reading the product disclosure statement (PDS) will give you a better idea of what is and isn’t covered by a policy. 

Youth has plenty of pluses, but young drivers – those aged between 18 and 25 years old – are also the age group most likely to be involved in crashes.³Transport Accident Commission – Road Safety Monitor 2021 Report, p78 As a result, they can have higher premiums.

On the flipside, restricting your insurance to drivers over a certain age could lower your premium. It’s all about reducing your likelihood of making a claim.

When you sign up for car insurance, you’re often asked whether you want to insure your car for an agreed value or for market value. This is the monetary figure you’ll receive from your insurer if your car’s written off or stolen.

Market value takes into consideration depreciation, and wear and tear, making it an accurate representation of the amount you would have received if you’d sold your car. 

Agreed value is an amount you and the insurer have agreed upon at the start of your policy for the period of insurance.  

There can be pros and cons to either approach that you might want to weigh up. For instance, setting an agreed value might mean you get a higher write-off figure, but it could come with a higher premium.

An unlisted driver is anyone who isn’t specifically mentioned on your car insurance policy. Whether unlisted drivers are covered ultimately depends upon your individual policy.

If they are covered and an unlisted driver has an accident, you could have an increased excess to pay.  

You might also want to be aware that family members might be treated as unlisted drivers, even if they’re going to be regularly driving your car. You might need to have them expressly listed to avoid that higher excess.

When considering unlisted drivers, it might be worthwhile double checking if your policy has any age restrictions. For instance, drivers under 25 might also attract a higher excess

If you want to know who counts as an unlisted driver on your policy, you could check the product disclosure statement (PDS).

Just like some other forms of insurance, such as travel or health insurance, when you make a car insurance claim, you can be charged an excess payment. It’s the charge you pay after making a claim in order to receive the benefits that your policy entitles you to (such as repair or replacement of your vehicle)

You usually only pay an excess charge if you’re at fault or are unable to identify another party at fault.

If you’re able to identify a third party who is at fault, your insurance provider will then go to the third party – or their insurance provider – to recover the costs.

Your product disclosure statement (PDS) may list what your excess is, so you know what to expect if you ever need to make a claim.

Each insurer’s claim process can be different. For example, you might have options to make a claim over the phone or online.

You’ll likely need to be able to provide the following to get that claim moving:

• when and where the incident happened
• what damage has been done, including photos if possible
• the details of any other party or parties involved, including name, address, vehicle registration and their insurance details, if they have any.
• a police report number, if applicable
• the names and contact details of any witnesses
• details of the tow truck company you used, if applicable.

No, insurers don’t typically provide cover for mechanical costs and maintenance costs. General wear and tear just aren’t the kinds of things that car insurance tends to cover. Instead, you might want to take your car in for regular servicing, as well as get into some good car maintenance habits.

Legally, your insurer needs to get back to you within 10 business days. They’ll either let you know if your claim has been approved or rejected or ask you for more information.

Of course, it might take a bit longer for everything to be sorted after you know whether your claim is going ahead or not. For instance, repairing your car could take some time.

Your driving and claim histories can play a role in your premium, along with those of anyone else listed to drive your car. For instance, making a claim could mean your no-claim discount is affected. Needing to make a claim could also suggest to your insurer that you’re a riskier driver.

But this might not be the case for all types of claims. For instance, making a claim because of weather damage might not mean your premium goes up.

If you stick with an insurer for a good few years, they might offer you a loyalty discount. This could mean your premiums are lower.

But bear in mind that setting and forgetting your car insurance – or simply just sticking with the same insurer – could mean you end up paying more than you could otherwise. Regularly comparing policies and insurers could help you find a deal that offers you better value.