eric Insurance Explains the Top Considerations When Looking for Car Insurance

GlobeNewswire

MELBOURNE, Australia, May 20, 2022 (GLOBE NEWSWIRE) -- According to leading car and motorbike insurance specialist eric Insurance, the top consideration when looking at car insurance options is how much it will cost to replace the car. Replacing a new or valuable car can be quite expensive, which is why vehicle owners should be looking at Comprehensive Car Insurance.

eric Insurance also explains that the cost to replace an older car may be less than an annual comprehensive premium, so vehicle owners may get better value out of a Third Party Fire and Theft or a Third Party Property Only insurance policy.

Once owners have an idea of their vehicle's replacement cost, they will be better placed to determine what level of cover is right for them. Compulsory Third Party insurance (CTP) is the most basic level of car insurance required to legally drive in Australia. Then there's Third Party Car Insurance and Comprehensive Car Insurance, which offer various levels of cover.

When searching for car insurance, vehicle owners will come across the terms "agreed value" and "market value." The exact definitions of these terms will vary depending on the insurer, but eric Insurance explains that the agreed value is the amount the vehicle is worth, as agreed by the insurer and the customer, when taking out the policy and market value is the price the car might be sold for if it were on the market for sale at the time of making a claim.

Additional considerations for car owners include whether they want Roadside Assistance, which is often offered as an optional extra on top of insurance policies. eric Insurance mentions that the use of the car is also very important, as it may affect the cost of the insurance premium. When working out the premium, insurance companies will also want to know who will be driving the car, including their age, gender and driving history.

Once drivers have a better understanding of these factors, they can start comparing policies to find the best car insurance for their circumstances.

To obtain a quote for car insurance online, visit the eric Insurance website.

Disclaimer: This article may contain general financial product advice that does not take into account your personal financial circumstance. Make sure you read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making any decisions about your insurance. For more information, call 1800 999 977.