WE ALL have that one mate that is always one upping us, don’t we?
When you hear that someone has cheaper insurance, the first question that should be asked is: is it apples for apples or (as is in most cases) apples for oranges?
There are many different variables an insurer takes into consideration when calculating a premium.
So when your mate tells you their premium is cheaper than yours, you need to consider some of the following:
Values and types of trucks/trailers, type of freight and quantities carried, distance travelled (radius), claims history, yard/depot security, city or country driving, driver age and experience, Trailer in Control values, excess amounts, type of premium structure
Additional benefits such as Automatic Trailer in Control, new vehicle replacement, automatic driver acceptance, liability limits, driver repatriation and personal effects, emergency accommodation, journey continuance, higher clean-up cost limits, business interruption, finance payout limits, CTP Gap cover, tool of trade extension etc.
As a broker, the terms “under insurance” and “non-disclosure” also come to mind when we are asked this question, and are more often than not the reason for a cheaper premium.
We would encourage anyone considering any type of insurance policy to make themselves aware of what you are and are not covered for within any insurance policy and also what responsibilities you have regarding the “under insurance” and “non-disclosure” clauses within your policies, as they can have serious implications for you down the track if not complied with.
The saying “you get what you pay for” is never more relevant than when it comes to insurance.
When considering a new policy or renewing an existing one, it is always best practice to firstly determine what you need to be covered for and what other benefits you would like as part of your policy while making sure you comply with your responsibilities under the policy.
It is all too easy to fall into the trap of shopping around for the cheapest premium and run the risk of losing everything you have worked for.
Remember the words “you get what you pay for” and do your homework!
To make the right decision, you should enlist the help of TBI Insurance Services. They provide expert advice after a careful risk assessment and give you tailored solutions that fit your budget.
Important: All answers and information contained within this article should be considered as GENERAL ADVICE ONLY. This advice should only be considered as general in nature and its intent is only to prompt the readers to investigate their own individual insurances.
It has been prepared without taking into account the readers own individual objectives, financial situation or needs.
Because of that, before acting on the above advice, the client or any persons should consider its appropriateness (having regard to their objectives, needs and financial situation) and seek further independent advice from their own financial advisor.