February 19, 2024

Vehicle owners looking to have their cars protected can consider purchasing vehicle insurance. Some new car owners who may not be too sure about the benefits of having a car insurance plan probably never looked at it deeply. At the same time, vehicle owners having older cars may have apprehensions about finding plans that can sufficiently cover their vehicles.

Whatever the case, many car owners in NSW can still have doubts about car insurance coverage. If you are in the same league of hesitant car owners, the best thing you can do is get in touch with your cheap car insurance provider to understand the policy benefits. Car insurance NSW is primarily available in three levels of cover – third party property damage, third party fire and theft, and comprehensive car insurance.

Assess your vehicle needs, usage, and affordability before signing up for a car insurance plan. Also, read the policy disclosure statements carefully so you don’t miss out on the fine print that can contain important information. And it would help if you knew that vehicle maintenance can play a crucial role in potentially extending your car’s life and reducing on-road risks; however, it may have little impact on your vehicle insurance premiums.

This article focuses on a few queries insurers frequently receive about the policy inclusions.

Q1: Will my policy cover mechanical issues?

Mechanical issues/breakdowns because of constant wear and tear will not be covered by vehicle insurers. So, you may need to pull out your savings to fix your damaged car in times like these.

Remember that only a comprehensive car insurance policy covers loss/damage to your car due to unanticipated events like accidents, fire, theft, vandalism, and extreme weather. Also, a third-party fire and theft policy may financially protect your vehicle in case of fire, theft, or attempted theft incidents, but not for road accidents.

Q2: Will my policy cover engine collapse?

Vehicle insurers don’t cover your car for hardware (electrical and electronic components), software, structural, and mechanical impairments. The only case when your vehicle’s mechanical failure may be covered is when the crash was due to an insured event. In which case, your car insurer may support you with the repair or replacement costs.

However, if you have opted for roadside assistance, you can summon professional help to fix your vehicle by contacting your car insurer. Or you can arrange for towing and consider getting your vehicle’s engine replaced by the manufacturer/car dealer if it malfunctioned within the warranty period.

Q3: Will my policy cover regular vehicle repairs?

The answer is – NO. Your vehicle will not be covered for scheduled maintenance services.

Q4: Will my policy cover loss/damage to my parked vehicle?

Yes, if you have comprehensive car insurance your insurer may compensate for any loss/damage to your car because of accidents, vandalism, theft, attempted theft, or extreme weather events when left unattended depending on your policy’s coverage.

Your insurer may track down the guilty party and recover your vehicle loss/damage costs from them or their insurer. Regardless, you can still file a claim with your insurer while paying the applicable excesses to manage the situation.

These are some common questions vehicle owners may have regarding the coverage of car insurance in NSW. Even with cheap car insurance, vehicle breakdowns due to mechanical flaws and car maintenance bills are not covered. Have a brief chat with your vehicle insurer to understand how and when the benefits apply.

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