Why you should check your amount covered at renewal time
When it comes to car insurance, something we always forget about is what to do at renewal time. Usually, it’s as simple as clicking a button to confirm that you’re happy with your current premium and want to continue your policy as is. However, it’s really important to dig a little deeper and check your policy details at renewal. It’s especially important to check your amount covered when renewing.
What is amount covered?
Your amount covered refers to the amount that your vehicle is currently insured for. It’s a set amount that is the maximum we’ll pay for loss or damage to your car, including the value of any accessories, modifications and GST. When you take out your policy, you can choose this amount from within a range. You can also change this when you renew your cover. Some insurers call this an ‘agreed value’.
What to consider when you check your amount covered
Kilometres driven
This is because the condition of your vehicle will change as it ages and you put more or less kilometres on the clock. If you’ve noticed that you’re driving more or less over the past year, it’s probably a good idea to check how this impacts your amount covered.
Accessories and modifications
Modifications (even small ones!) may change your amount covered. You may be surprised by what counts as a modification.
Window tinting, alloy wheels, and a new paint job or audio system are some things that can be classified as modifications.
Other forms of modifications can include adding higher-performance brakes or a new exhaust system. Disability modifications (such as lifts or ramps) count too.
If you’re thinking of making changes to your car (or have done so), it’s a good idea to get in touch with us.
For more information on car modifications, read this.
Learn about Comprehensive Car Insurance
What does this mean for me?
It’s important for you to be comfortable with the price that your vehicle is insured for. If your vehicle were to become seriously damaged or written off, you’d want to make sure that you’re able to replace it.
After the stress of losing your means of transport, you don’t want to be stuck unable to purchase another car. So when your renewal comes through, adjust your amount covered if necessary, even if it means your premium could be a little higher.
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Australian Pensioners Insurance Agency Pty Ltd (Apia) ABN 14 099 650 996 AR 239591 is an authorised representative of AAI Limited ABN 48 005 297 807, the product issuer. 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 or Policy Document available at www.apia.com.au before you make any decision regarding this product. The Target Market Determination is also available.
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.
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