When your car is covered but your paint job isn’t

Part of the fun of buying a new car is being able to choose the bells and whistles that best suit you.

Want roof-racks for your ski gear? Sure! How about metallic paint to jazz it up a bit? Don’t mind if I do!

These extras can add significant value to your car. But have you thought about what they might mean for your insurance?

Different insurers can have different rules about what is and isn’t covered under Comprehensive Car Insurance. In the case of optional extras, some insurers will only pay you for the market value of your car without those extras.

What about depreciation?

Another key difference among Car Insurance policies vary is whether they will replace a lost or stolen vehicle with a brand new one, or pay you an ‘agreed’ or ‘market’ value.

The benefit of receiving a brand new vehicle rather than the agreed/market value can be significant when you factor in the amount of depreciation on a new car.

If you’re not sure what your car insurance covers you for, check your policy schedule and Product Disclosure Statement. It’s always good to know where you stand so there are no nasty surprises at claim time.