Policy Wording Explained
Helping You Make Smarter Choices
We've put together a brief guide of some of the more complicated aspects of our car insurance policy to help you make a smart choice when you select your insurance provider.
What Is A Product Disclosure Statement?
What is a product disclosure statement?
This Product Disclosure Statement will assist you to make an informed decision about our insurance products. It consists of two parts, which you should read before making a final decision to purchase.
Your duty of disclosure
What you must tell us
You must be honest and give us information we need in order to decide whether to insure you and on what terms. You must do this for all persons to be insured under this policy.
- Before you enter into this policy with us for the first time, you must tell us everything you know and that a reasonable person in the circumstances would tell us in answer to the questions we ask.
- Before you renew or make any change to this policy, you have a duty to tell us everything you know and that a reasonable person in the circumstances would know, is a matter that is relevant to our decision whether to insure you and, if so, on what terms. You do not have to tell us about any matter that reduces our risk, or is common knowledge, or that we should know through our business, or that we tell you we do not need to know.
Permitted use of the car
You will have no cover if the car is used for purposes which you have not declared to us. The permitted use, which you have selected from the following categories, is shown on your Insurance Certificate
Private Use or Private and Commuting Use is use for social, domestic and pleasure purposes only, and also travelling between home and a regular place of work.
Private and Occasional Business Use is the "Private and Commuting" use above, and also includes use for occasional business purposes by the regular driver or spouse only. Occasional business means the car is not registered for business use and not an essential part of earning income from such business.
Private and Business Use is the "Private and Commuting" use above, and also includes use for the business of the regular driver or spouse by any driver listed on the current Insurance Certificate.
Use that is never covered:
- carrying passengers or other people's goods for payment.
- driving tuition for payment.
- hiring the car to other people.
Use that is always covered:
- private car sharing and voluntary home or community service, provided that no profit is made from such use.
Excess on claims
This is the amount you may have to pay towards each claim.
- Basic Excess applies to all claims. It will be a standard amount, or you may also be able to choose a higher amount to obtain a lower premium.
- Additional Excesses apply as follows when the car is driven by a person who is not an excluded driver, but who:
- is under 21 years of age
- is aged 21 to 24 years inclusive
- has not held a full Australian licence for at least 2 years
- is not listed as a driver on the Insurance Certificate
Reduced window glass excess (optional)
This optional benefit applies only if indicated on the Insurance Certificate and allows you to pay an additional fee on your premiums in order to pay a lower excess if only a car's window needs to be repaired.
Policy Coverage
What is the difference between the following types of car insurance Comprehensive, Third Party Fire and Theft and Third Party Property Damage?
Comprehensive Car Insurance Cover
Our Cannex 5 Star awarded Standard Comprehensive car insurance policy covers liability by your car to other people's property, plus cover for repairs to your car up to the value you insure it for.
Third Party Property Cover
Budget Direct's Third Party Property policy covers your liability for damage caused by your car to other people's property. It also includes a limited amount of cover if your car is damaged in a no fault accident with an uninsured vehicle.
Third Party Fire & Theft Cover
Our Third Party Fire and Theft policy covers you for loss or damage to your car if it is stolen or catches fire in addition to your liability for damage caused by your car to other people's property. It also includes a limited amount of cover if your car is damaged in a no fault accident with an uninsured vehicle. It does not cover damage caused by attempted theft of the car or for items stolen from the car. This policy is only available when the insured car's total value is less than $10,000.
Please see our Product Disclosure Statement for details
What personal effects are associated with car insurance?
Personal effects are your personal belongings that are in your car at the time of an accident.
When you take out comprehensive insurance with Budget Direct we provide cover for damage to your personal effects resulting from a collision involving your car. Limits do apply (Please see our Product Disclosure Statement for details).
What is a No Claim Discount (NCD) and how does it affect car insurance premiums?
It is a discount on your car insurance premium. Your No Claim Discount is calculated on your years of driving experience and your claims record. It means as you gain more years of claim free driving experience you receive a discount from the full priced premium until it reaches a maximum discount (also known as Rating 1). This is because we believe you are less likely to make a claim than an inexperienced driver.
What is the difference between a Rating 1, No Claim Discount and No Claim Bonus?
They are different terms for a scale that insurers use to rank your driving history and risk. Rating 1, NCD and NCB, all refer to a discount that is applied to the full premium.
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