We’re very used to helping people understand their car insurance! As smash repairers we deal with insurance companies all day, every day, and we’re always happy to help our clients untangle their policies and claims.

But while we can help you understand your policy and give you the information relating to your claim, one thing we can’t do is give you professional advice on which policy to take and what else is available – that’s where an insurance broker can help.

But what is an insurance broker?

Imagine someone who knows your vehicle(s), your financial situation and your risk profile, and can access and compare dozens of the best insurance policies from any number of insurance providers to suit your exact needs. They factor in the premium, the cover, changes in the insurance market and any special considerations (for example if you’re insuring a fleet of business vehicles) to find you the absolute best policy. They make sure you understand your policy, they handle your application and they’re on hand to take care of any claims.

That’s an insurance broker. Like any broker, they act as an intermediary between their clients (you) and a service provider (insurance companies). They’re not insurers themselves so they’re always acting in your best interests to make sure your policy is a perfect fit for you and your vehicle. Better, they have strong working relationships with insurers and underwriters so they can often secure a better price for insurance products, particularly for business vehicles and more complex policies. For the same reason, claims made through a broker are generally much smoother and quicker – and like the team at Como Panel & Paint, they’re always interested in getting the absolute best repairs for their clients, not just the cheapest ones.

But what you’ll probably notice most of all is the peace of mind you get when dealing with an insurance broker. There’s no guesswork and every ‘what if?’ has been considered – even the ones you didn’t know about. So you’re not only dealing with an expert in the insurance industry who’ll get the best-fit policy for your needs, you know that if and when it comes time to make a claim, there’s somebody who can help – and they’re working for you!

For more information, or to see what else we’re up to, please follow us on Twitter or check our Facebook page.

We get asked about insurance all the time, and it’s not really surprising. Taking out a policy can be complicated and time-consuming and you can still end up not really knowing if you got the policy that’s right for you.

One of the most common things we get asked about is the difference between the market value and the agreed value of a vehicle when taking out a comprehensive car insurance policy. How are they different? Do they change over time? Is there a good reason to choose one over the other? As always, the answers to these questions depend on your circumstances and your car, but we can give you a good working guide to making the right decision.

Market value

Market value is the amount you could reasonably ask for your car on the open market in its current condition. It is not the same as its trade-in value, or the amount you might get for it from a particular buyer, like a restorer or collector. Your vehicle will generally depreciate over time, so you most likely won’t get the full value amount on your policy in the event of a total loss (a write-off) – BUT in theory you will be able to buy a car of the same age and standard, and in similar condition, with whatever you receive.

So what are the advantages of choosing to insure your car for market value?

First, market value insurance premiums are almost always cheaper than agreed value premiums, which is one of the main reasons they’re also much more common. Choosing market value will give you a reasonable premium and a reasonable return on the value of your car in the event of a total loss. It doesn’t have the certainty of a market value policy, but it will cost you less in the long term.

Agreed value

Agreed value is a fixed amount agreed on by the insurance company and the car owner. If you’re not insuring a new vehicle, this amount is worked out based on industry guidelines. For new cars, the purchase price is used as a basis for the agreed value.

In the event of a total loss, the insurance company will pay this fixed amount. Unsurprisingly, these policies present a greater risk to insurers and are generally more expensive then market value policies. So agreed value makes more sense for new cars or highly modified cars.

Simple, right?

Well yes, and no.

There are other factors you should consider when deciding what sort of policy to take out.

First, you need to consider your risk profile. What sort of driving do you do? Where do you live? Where do you park your car at night? What sort of security does it have? How long have you been driving? Had any accidents? All of these questions will factor into your premium, and your insurer will want to know all the answers.

You’ll also want to think about your financial situation and how the certainty of an agreed value policy weighs up against the higher premium it requires.

And of equal importance are any loans or car finance arrangements you have. A total loss doesn’t always erase your outstanding payments and you’ll need to consider any potential shortfall between the amount you may receive from an insurance payout and the amount you’ll need in order to pay off your loan AND replace your car.

Finally, certainty is a big consideration. Market value claims often require a lot of negotiation before agreement on a final payout amount is reached, and you can end up receiving a lot less than the figure on your policy. An agreed value policy provides a reliable payout value.

As always, if you want to know more about your car insurance, or if you don’t understand your policy, please give us a call and we’ll be happy to go through it with you!

For more information, or to see what else we’re up to, please follow us on Twitter or check our Facebook page.

We get asked this question a lot! We deal with car insurance on a daily basis and we think it’s important for everyone to understand how it works and how it applies to their circumstances, especially if they’ve been in an accident.

In legal-speak, the Compulsory Third Party (CTP) insurance which is part of every WA motor vehicle registration covers unlimited liability for personal injury caused by, through or in connection with directly driving the insured motor vehicle in incidents to which the Motor Vehicle (Third Party Insurance) Act 1943 applies.

But what does that mean? In layman’s terms, it means that anyone who is personally injured in an incident involving a WA-registered car may be able make a claim on CTP insurance. It’s intended to prevent the situation where someone is injured in a car accident, through no fault of their own, and can’t pay their medical bills.

There are limits to who can claim, and what can be claimed, however! Fault must be established and proven for a claim to succeed. If you were partly at fault in causing your injuries (e.g. not wearing a seatbelt, negligent driving, riding a bike with no helmet) then you may not be able to claim all expenses.

Very importantly, you won’t be able to make a successful claim if:

• You were the only driver at fault
• You were the driver of a single vehicle crash
• No negligence can be established against the owner or driver of another WA licensed vehicle
• The person you consider at fault was not the driver or owner of a WA licensed vehicle (e.g. the person was a pedestrian or push cyclist or was driving a motor vehicle licensed in another Australian state or territory).

And of course none of this covers damage to your car, or anybody else’s car or property!

It’s for this reason that we always, always recommend that you get proper car insurance. CTP insurance is a safeguard in the public interest, but for the majority of accidents it’s not going to help you much at all! If you want to discuss your car insurance or have questions about CTP, please give us a call, or visit the WA Government CTP information page:

http://www.icwa.wa.gov.au/mvpi/mvpi_ctp.shtml

http://www.icwa.wa.gov.au/mvpi/claims/mvpi_pi_who.shtml

For more information, or to see what else we’re up to, please follow us on Twitter or check our Facebook page.

What does the colour of your car say about you? We work with colour a lot – most accident damage involves some form of denting, scratching or chipping of your car’s paintwork, and we do a lot of custom paint jobs too. We all know that practically speaking, the colour makes no difference at all – it’s not going to help in an accident, save you money on fuel or make you go faster! But we also know that cars are more than just machines, and they mean more to us than just transport, so your choice of colour probably says more about you than you realise.

Did you know that people with red cars pay more for car insurance, for example? A red car is an attention-grabbing car, and a person who buys one is more likely to be all the things we associate with the colour itself: passionate, wild, daring and a little bit reckless. This is why ‘racing red’ is such a big part of Ferrari’s branding – and also why you don’t see too many Ferraris aimed at the suburban family market! Statistically these drivers have a greater chance of being involved in an accident, so they’re up for a little bit more on their premium.

Psychologically, car colour says something about the way we like to be perceived. Some common examples:

Black : serious, mysterious and a little bit aloof. Think Men in Black or the Batmobile.

White: wholesome, clean and generous. Greased Lightning or the Popemobile

Blue:  calm and in control. Police cars.

Silver: slick, space-age and wealthy. The Delorien and James Bond*

Yellow: fun, cheeky and little bit glamourous. Bumblebee from Transformers.

*yes we know, he has one in every colour

But it’s not just about perception – your car colour can have a serious impact on the value of your car! A conservative colour choice statistically has a much greater resale value for most cars, particularly in the current economic climate where ‘safe’ is a much more desirable option than ‘reckless’ for most people. And it’s the same at the opposite end of the market – a Ferrari that’s not red will sell for thousands less than its rosy counterpart. It’s a good thing to keep in mind before you disco-pimp your family sedan – there’s a reason the Scooby Doo kids are still driving that psychedelic van after 45 years.

For more information, or to see what else we’re up to, please follow us on Twitter or check our Facebook page.