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Exclusions
Excess
Premium
No Claim Bonus
Accessories
Modifications

Exclusions - When you are not Insured

Most policies incorporate a separate section detailing those circumstances under which the company will not pay a claim. Common exclusions include:

The car being driven by an unlicensed driver.

The driver having a blood alcohol level higher than that allowed by law.

The car being "modified" - for example, illegal modifications, or modifications made without the insurance company's knowledge.

The car being unroadworthy at the time of the accident.

Excess

Most car insurance policies have excesses attached to them. The excess is the amount you would have to pay, in the event of any claim. For example, in the case of a $600 claim, when the policy includes an excess of $350, the insurance company would pay out only $250.

Often a standard excess attached to a policy can be removed by paying a slightly higher premium.

Most companies have a sliding scale of excesses with drivers aged from 17 to about 21-25 paying more of each claim than older more experienced drivers. This may seem unfair, but statistics prove that younger drivers are more likely to be involved in an accident than older, more experienced drivers. An excess that applies to the age of the driver normally cannot be removed.

Some insurance companies may not require you to pay an excess when you have a claim and it's not your fault.

Premium

Premiums vary depending on the make and model of the car. Generally, "popular" cars cost less to insure than unusual cars because replacement parts for the more "popular" models can be cheaper and more readily available.

No Claim Bonus

Most insurance companies offer a no-claim bonus in recognition of a claim-free insurance period. The scale ranges between about 20-60 percent discount off the cost of the basic premium, depending upon the number of claim-free years.

Accessories

The cost of standard accessories, as included in the manufacturer's usual specifications for the car, are included in the car's "market value" when it's insured.

If you want to fit additional accessories - for example, an expensive stereo system or CB radio, check with your insurance company. Then they can usually arrange to include cover for these items at an extra cost.

Modifications

Modifications are changes made to a vehicle such the exhaust, engine, tyres or additions to a vehicle such as a spoiler or body kit.
Although many modifications are OK, some changes are not allowed, so you should always check with Queensland Transport before making any changes or purchasing a vehicle with modifications.
Some modifications are considered minor and can be done without approval, but others are considered complex or specific and may require approval through the Approved Persons Scheme or require a written submission to the Vehicle Safety and Operations Section of Queensland Transport.
Be aware that approval from an Approved Person may incur a fee and that not obtaining approval before commencing modifications could result in your vehicle insurance becoming void and you may be liable for prosecution.
It is also advisable to check with your insurance company because even if Queensland Transport approves the change, some companies will exclude vehicles or charge an additional fee or excess for particular modifications.
It is important to advise your insurance company of all modifications.

Yours for the Asking

RACQ is able to assist you with your insurance requirements. Just ask at any RACQ office or telephone 13 1905.

Request a quote online.