Insuring your car
Why you should check your car insurance amount covered at renewal time
When it comes to car insurance, something we always forget about is what to do at renewal time. Most of the time, it’s as simple as the click of a button to confirm that you’re happy with your current premium and want to continue your policy as is. However, it's important to dig a little deeper and check your details on your policy at renewal. It’s especially important to check your amount covered (among other things).
What is your car insurance amount covered?
Amount covered refers to the set amount that your vehicle is currently insured for. This means that if you were to make a claim, the amount covered amount is the maximum that an insurer will pay for your vehicle. This includes if it is a total loss, or if the cost to repair the vehicle is more than the amount covered.
Amount covered vs market value
When you insure your vehicle with GIO Comprehensive Car Insurance, you have the option to select your Amount Covered or Market Value.
What is market value?
Market value is a variable amount based on our assessment of how much your car would cost at the time of the incident.
This includes factors like the car’s:
- age,
- make and model,
- kilometres travelled, and
- general condition.
When assessing Market Value, we don’t include:
- stamp duty,
- transfer fees,
- dealer warranty or
- delivery costs.
To work out your car’s market value, we may use recognised industry guides and publications that track how much cars actually sell for.
It’s important to remember that the market value depends on the car’s conditions and what it would sell for based on comparable sales. This may not be the highest ever sale price. Read the PDS for more info, including any deductions that may apply.
Explore Comprehensive Car Insurance
Why it’s important to check your amount covered
It’s important for you to make sure that you are comfortable with the amount that your vehicle is insured for. If something were to happen to your vehicle, and it becomes seriously damaged or written off, it’s good to know that you’ll be able to replace it.
The last thing you’d need on your plate after having lost your means for transport, is not being able to purchase another car. We recommend that when your renewal comes through, you consult with your insurer to check, and if necessary, adjust the amount covered of your vehicle, even if it means your premium could be a little higher.
Find out more about your car insurance amount covered here.
Read more:
- What to check when renewing your car insurance?
- What is the future of electric cars in Australia?
- How to do a car insurance health check
AAI Limited Trading as GIO. Insured issued by AAI Limited ABN 48 005 297 807 trading as GIO. Registered office, Level 23, 80 Ann Street, Brisbane QLD 4000. Any advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available. Information outlines current environment factors as at December 2021, and may not be indicative of future market influences.
The information is intended to be of general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Please make your own enquiries.
The information is intended to be of general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Please make your own enquiries.
