The Best insurance company is ??? Insurance When you buy insurance it is an intangible, you are basically buying a promise. Its in writing and legally binding so make sure you understand the promise Brendon When you buy insurance it is an intangible, you are basically buying a promise. Its in writing and legally binding so make sure you understand the promise.
Sorry to dissapoint but there is no best insurance company or policy. There are of course products that will suit your needs better than others. If you are purchasing a new scooter your insurance needs are different than if you are purchasing second hand one. Also premium rates differ from city to city so a company that is competetive on the Gold Coast may not be competitive in Sydney.
We have listed some tips on Insurance and what key points or policy features you should evaluate before purchasing.
Basis of Settlement - This is how much you get if the scoot is a total loss (write off), there are basically three options
1) Replacement - If you are purchasing a new scooter and are arranging insurance at purchase time some insurance companies will buy you a brand new scooter including onroad costs if it is a total loss (write off or stolen) for a certain period of time, this is typically 1,2,3 or even 4 years. Its a handy benefit to know that you'll get a brand new one even if they have become more expensive.
2) Agreed value - exactly that, the insurance company and you agree to the value of the scoot when you take out the policy. If its a total loss you know exactly what you are going to get.
3) Market Value - In the event of a total loss the insurance company will pay you the market value of the scooter immediately prior to the loss. They will take into account the age, condition and kilometres. Basically you will be negotiating a value for a scooter that is either a wrecked mess or stolen while you are without wheels. This is not a strong negotiating position.
Generally speaking if you are purchasing a new scooter it is good to know that if the scoot is a total loss they will buy you a brand new one with rego. If you have a second hand scooter it is nice to know exaclty what you will get if its totalled and thats the security provided by an agreed value. The market value option provides very little certainty.
Excess - How much you have to contribute in the event of a claim
Your policy will have a basic excess which generally range from $100 to $500 dollars, this can vary with your postcode and the type of scooter. In addition to the basic excess there will be and age excess for riders under 25 and an inexperienced drivers excess for those over 25 that have not held an Australian licence (in that class) for two years. Check out what your total excess is. In some circumstances such as theft these additional excesses will not apply.
Additional benefits such as rating protection, accessories cover, choice of repairer etc should also be taken into consideration. It is also advisable to have a read of the PDS from your prospective insurer to make sure any of your other needs are met.
Which One to Go For?
We have given you some tips on what to look out for. If you have a new scoot and its $50 more expensive to get a policy with a two year new scooter replacement benefit than one that offers market value its obvious that you would spend the extra $50 to get the better replacement terms provided the excess and other benefits are similar. Same with a used scoot, if its only a few dollars more to get an agreed value over market value then spend the extra. The lower the excess, the better.
With all the choice available you will need to filter out the policies that don't suit. When you contact your insurer ask them the more important questions first. Is it an agreed value Yes / No, if they say no and you want agreed value there is no point in wasting any more time, move onto the next insurer.
Eventually you will have a few quotes that meet your criteria. All you need to do is to choose the one that best suits your needs whilst remaining affordable.
published 2/04/2007 |