Why car insurance should go hand in hand with your car loan
Beyond Bank offers a great range of car loans for your next automotive purchase. Whatever your financial situation, we have something that will suit your needs. Because buying a car can be a pretty big investment – and owning a car comes with its own risks – you should consider car insurance when you get a loan.
Accidents and collisions
Most people would rightly consider themselves to be safe, responsible drivers who adhere to the rules of the road and maintain a level of consideration for others. Unfortunately, not everyone follows suit and of course, accidents do happen. Maybe it was a rainy night, or perhaps someone else on the road was driving erratically.
If you’re the one deemed to be at fault and there are damages to other person’s vehicle, you could be liable for their repairs. Picture this: you’re driving to work when all of a sudden the Rolls-Royce Phantom in front of you slams on the brakes. You can’t stop in time and end up colliding, leaving some nasty dents in what you’re about to find out is a million dollar car. In this situation you could be at fault for not allowing enough space between you and the car in front.
So how much is it going to cost you to pay for the repairs to the Rolls? $1,000? $10,000? $100,000? You’re probably not wanting to think about that cost, and therein lies the reason for a car insurance policy. Even the most basic insurance policy from Beyond Bank offers third party property damage, meaning if your claim is accepted, you’ll be off the hook for the cost of repairs to the Rolls Royce.
Fauna, fire and flood
Colliding with another car isn’t the only way your vehicle can incur damages. Animal crashes account for a reported 5-6 per cent of accidents on Aussie roads, according to a paper published by Queensland’s Centre for Accident Research and Road Safety1.
Wild animals aren’t the only danger either; your car is also subject to the risks of fire, flood and vandalism. These potential events are relatively unpredictable and it’s difficult to gauge how they might affect you, but why take the risk? Beyond Bank’s comprehensive car insurance may cover these circumstances (and many others) should you be unlucky enough to experience them.
The likelihood of a theft occurring would greatly depend on where you live, but it’s important to consider the risks any time you park your car in an area accessible to the public. The National Motor Vehicle Theft Reduction Council reported that just short of 57,000 vehicles were stolen in 2016. Ray Carroll, head of the Council, stated that 70 per cent of vehicles were taken from outside of a residence. Even more unsettling, Carroll stated 31 per cent of the stolen cars are never recovered.
Thieves can be very crafty and as such your car is never 100 per cent safe left anywhere, regardless of whether you have an immobiliser or alarm system.
Beyond Bank Australia, a trading name of Community CPS Australia Ltd ABN 15 087 651 143, AFSL / Australian Credit Licence 237856 arranges this insurance as an agent for the insurer Allianz Australia Insurance Limited ABN 15 000 122 850, AFSL 234708. We do not provide any advice based on any consideration of your objectives, financial situation or needs. Terms, conditions, limits and exclusions apply. Before making a decision, please consider the Product Disclosure Statement available from the Beyond Bank Australia website. If you purchase this insurance, Beyond Bank Australia will receive a commission that is a percentage of the premium. We may also receive a profit share payment based on the profitability of our insurance portfolio. Ask us for more details before we provide you with the services.