Optional Benefits in Car Insurance: Are they worth it?
Comprehensive car insurance policies usually include the features most drivers want. However, we all have different needs when it comes to our individual car cover. This is where optional benefits come into play.
With car insurance add-ons, you have the opportunity to tailor your cover. You can pay for extras based on what your needs are.
You might be wondering whether optional benefits are worth the cost for you.
Like most things, it depends.
Here, we’ll review some optional benefits that you may be eligible for. They may be available to you at extra cost.
Hire car cover after an insured incident
Imagine what you would do if you needed to get your car repaired or replaced. Would you be able to easily find transport? Could you pay for a rental car after an accident? Your existing comprehensive car insurance policy likely includes car hire after theft or an incident where you are not-at-fault. However, outside of these two cases, cover for a hire car is an optional benefit you would need to add to your policy.
If you can cover the cost of a hire car or are willing to use other means of transport you may not need this option. On the other hand, adding the option might be worth it for those who cannot take on a large transport expense. Your product disclosure statement will specify the number of days and maximum daily value of your car hire
Excess free windscreen or window glass claim
Another common optional benefit is excess free windscreen replacement. This would apply to window glass and sunroof replacement as well. Anyone who has ever had a small chip in their windscreen knows that it can quickly turn into a huge crack. If you do find yourself with a fully cracked windscreen, you’d be happy to have opted for this additional cover. You may consider this optional benefit depending on where you spend time driving. Do you drive in locations where debris or weather is more likely to damage your windows? Excess free windscreen cover may be a good choice for you. With this optional benefit you get one excess-free windscreen repair or replacement during the period of your insurance. This means you will not have to pay out of pocket for the first windscreen or glass claim.
Factors to consider when choosing optional benefits
Optional benefits are a great way to tailor car insurance coverage. Your lifestyle and ability to cover unforeseen costs should inform your decision. We encourage you to weigh the costs and benefits as you consider what suits your individual needs.
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RACQ Operations Pty Ltd (ABN 80 009 663 414 AR 000234978) and Members Travel Group Pty Ltd (ABN 45 144 538 803 AR 000432492) are acting as an Authorised Representative of the issuer of the insurance, Tokio Marine & Nichido Fire Insurance Co., Ltd. (ABN 80 000 438 291 AFSL 246 548). Any advice set out above is general in nature only, and does not take into account your objectives, financial situation or needs. Before purchasing any travel products, please consider the RACQ Travel Insurance Product Disclosure Statement (PDS) and the Target Market Determinations (TMDs) that apply to these products. Whilst the PDS outlines the Terms and Conditions of these products, the TMDs outline the intended class of customers that comprise the target market for these travel products. This will allow you to consider which products best suit your objectives, financial situation and needs and consider the products appropriateness to your personal circumstances. TMDs also outline matters involving the distribution and the review of these products. The PDS, Supplementary PDS and TMDs for each travel product can be found here.