LIFESTYLE
When it comes to car insurance, the differences between low-cost policies and more premium coverage are not always obvious. We’ve put together this guide to help you make a more informed decision, whether you’re purchasing a new vehicle or evaluating your existing insurance policy.
One of the most important factors to consider is the excess, or the amount you'll have to pay out of pocket in the event of a claim. Most policies allow you to vary the standard excess, with a higher excess resulting in a lower premium. A higher excess means that in the event of an accident, you’ll have to pay more before your insurance kicks in.
It's also worth noting that some policies have additional excesses that must be paid on top of the standard excess in certain circumstances. For instance, the excess for young drivers is often higher than for more experienced drivers. Be sure to carefully review the excess amount and compare it to your specific needs.
Market value policies pay out based on the current worth of your vehicle at the time of a claim. In contrast, with agreed value policies, the agreed amount will stay the same over the annual policy period even if your car is stolen, damaged or the market changes. This offers greater certainty regarding your vehicle's value and peace of mind in the event of a claim.
If your car is damaged beyond repair, having a 'new for old replacement' cover means your damaged vehicle can be replaced with a brand-new equivalent model. If your car is eligible, this benefit can relieve the financial stress of having to replace your vehicle unexpectedly. It also means you won’t have to pay more for a new car once you receive your insurance pay out. It's important to note that some insurers only offer this feature on vehicles up to two years old, although Toyota Insurance offers new for old replacement for Toyota vehicles up to three years old.
When it comes to car repairs, using quality parts is important to ensure long-lasting performance. If you're looking for peace of mind in your car insurance policy, consider one that offers use of genuine parts. Toyota Insurance comes with the Toyota Genuine Parts^ promise, so you can trust that only top-quality parts will be used. Plus, with our lifetime guarantee on all repairs that we authorise, you can feel confident that your car will be running like new again, and perform like it should in the event of an accident.
Some policies offer optional benefits such as excess-free glass protection or rental car coverage.
For example, if you are someone who frequently drives on unsealed roads, adding extra glass cover to your policy can be a good option. Some insurers just cover the windscreen, whereas Toyota Insurance covers ALL GLASS on the vehicle for damage or replacement, subject to policy limits. Similarly, if you need a rental car after an accident, having rental car coverage can save you money.
Optional benefits like these are subject to limitation, so be sure to check your policy in detail for further information.
Before settling on any insurance policy, take the time to review its exclusions. Some low-cost policies may not provide coverage for drivers under 25, delivery or ridesharing usage or off-road driving.
Some policies may also have limitations for certain benefits, such as baby capsules, trailers, caravans and personal items. Make sure to check the policy's fine print to ensure that the cover is appropriate for your needs.
On the surface, budget or low-cost insurance may seem like the more attractive option due to the lower premiums. However, it's important to take a closer look at what value you’re really getting for your money.
Low-cost insurance policies may provide less coverage in case of a claim. They may also come with challenges, such as longer wait times, outsourced customer service and less personalised support during the repair of your vehicle.
On the other hand, premium insurance, like Toyota Insurance, offers more comprehensive coverage along with a high level of care and efficiency in the event of a claim.
When choosing insurance, it’s important to consider the coverage you need and the level of support you prefer before making a decision.
Toyota Genuine Insurance offers a range of benefits, such as Toyota Genuine Parts^, new for old replacement, flexible policy options, extensive additional benefits and competitive pricing.
Ready to review your existing car insurance and learn more about Toyota Genuine Insurance? Contact your local Toyota dealership or get a quote online at
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Disclaimer
^Toyota Genuine Parts/Accessories purchased at & fitted by a Toyota dealer to a Toyota vehicle which was purchased on or after 01/01/2019, are warranted for the remainder of that vehicle’s Toyota Warranty Advantage period, or 2yrs from installation (whichever is greater). Genuine Parts/Accessories purchased from, but not fitted by, a Toyota dealer are warranted for 2yrs from date of purchase. See toyota.com.au for T&Cs. This warranty does not limit & may not necessarily exceed your rights under the Australian Consumer Law.
Terms and conditions apply. This advice is general in nature and does not take into account your objectives, financial situation or needs. Before making a decision to purchase any of the insurance products you should consider the appropriateness of the advice taking into account your own objectives, financial situation and needs and refer to the current PDS and Target Market Determination for the relevant product available from participating Dealers, via our website at toyotainsurance.com.au or by calling 137 200. Toyota Comprehensive Motor Vehicle Insurance purchased in a dealership or via the Toyota Insurance National Customer Solutions Centre is facilitated by Toyota Finance Australia Limited ABN 48 002 435 181, AFSL and Australian Credit Licence 392536 as agent for, and on behalf of, the insurer. The insurer of Toyota Comprehensive Motor Vehicle Insurance is Aioi Nissay Dowa Insurance Company Australia Pty Ltd ABN 11 132 524 282, AFSL 443540 (Adica). If Toyota Comprehensive Motor Vehicle Insurance is purchased online, the issuer and insurer is Adica.
The information provided on this website by Toyota Finance Australia Limited ABN 48 002 435 181, AFSL and Australian Credit Licence 392536 is of a general nature and for information only. Nothing on this website constitutes or should be considered to constitute legal, taxation or financial advice. Before making a decision about any of the products and services featured on this website, you should consult with your own independent legal, taxation and financial advisors, who can advise you about your personal circumstances. Toyota Extra Care Roadside Assist is administered by Toyota Finance, a division of Toyota Finance Australia Limited ABN 48 002 435 181, AFSL and Australian Credit Licence 392536.
