5 questions to ask before buying car insurance


Shopping for car insurance? Whether you’re a first time buyer or an experienced shopper, it’s important to do your research. But with so many options out there and so much jargon to wrap your head around, knowing what questions to ask to get the best out of your insurance can be confusing.

Luckily, we’ve put together some questions you should ask yourself and your potential insurer before buying.

What level of cover do I need?

If you’re shopping around for car insurance, Comprehensive, Third Party and Third Party Fire and Theft cover are the main items on the menu (if you’re unsure of the differences, this article has a pretty good breakdown). At the very least you’re legally obligated to get Green Slip if you’re in NSW, CTP if you’re in SA, or MAI if you live in the ACT.  

Knowing which one could be right for you is a broad question, and the answer depends on a few factors:

  • What do you use your car for? If you use your car every day, say to get to work and uni, think about how you’ll be able to get around if someone damages your car. If you can’t live without it, consider comprehensive cover (like AAMI’s!) with hire car cover.
  • What kind of car do you have? For new cars or vehicles, repairs could burn a large hole in your pocket, so comprehensive cover may be more suitable. For more info on what is and isn’t covered be sure to read the PDS.
  • Where do you park your car at night? If your car is usually tucked away safe in a garage or secure carpark, you may have to worry less about car theft. If not, you may want to check if theft is covered by your policy.
  • Is your car financed? If so, the finance company may require you to take out comprehensive cover.

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Is there a way I can reduce my premium?

When shopping for a policy, price is often one of the most important factors. With that in mind, AAMI offers flexiPremiums® which can help you save. You can choose a higher excess to reduce your premium now or choose a lower excess and pay less at claim time.­

There are some other quick fixes you can make to potentially lower your premium, like changing your payment frequency and amount covered. For more info, read this handy article on getting the most out of your car insurance premium.

Who is covered by my policy?

Different insurers have different costs, excesses and inclusions for who can be listed on your policy. So, for example, if someone regularly drives your car (even just once or twice), like a partner or a sibling, finding a policy that accommodates additional drivers may be important. That way, if anything were to happen while they were driving your car, they’ll be covered by your policy*. AAMI car insurance can also cover unlisted drivers. But, if an unlisted driver has an accident in your car, they may be subject to higher fees and excesses.

For more information on excesses, read the Car Insurance Additional Information Guide.

What’s the repairs process like?

If you’ve had a bingle, you probably want to get back on the road as quickly and as safely as possible. Here at AAMI, we ensure the highest standard of repairs with our Lifetime Guarantee on all our authorised repairs for our comprehensive customers. If you’re in a not at fault accident, you may also be able to get a hire car for a certain number of days while your car is being repaired. Terms and conditions apply, so be sure to read the PDS.

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How easy it is to make a claim?

We take the hassle out of making a claim with the option to claim online or with the AAMI App for some policies, as well as over the phone by calling 13 22 44.

Click below to learn more about the claims process. 

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*Limits, conditions and exclusions apply. Read the PDS for full details of what is and isn’t covered.

Insurance is issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) trading as AAMI. 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 before you make any decision regarding this product. The Target Market Determination is also available.