Helping You Make Smarter Choices

We've put together a brief guide explaining our Car Insurance policy to help you make a smarter choice when selecting an insurance provider.

What Is A Product Disclosure Statement?

A Product Disclosure Statement (PDS) will help you make an informed decision about our insurance products. Our Product Disclosure Statements come in two parts: one (Part A) covering the general terms and conditions of all our policies, and a second (Part B) that contains details about a specific product. You should read both before you decide to purchase insurance.

What Are Our Underwriting Criteria?

Our underwriting criteria are the set of guidelines we use to calculate risk. We use customer details, vehicle and driving history to determine what level of insurance cover we can offer to a customer, and at what price.

Your Duty Not To Make A Misrepresentation

What you need to tell us

We will ask you questions:

  • when you apply for insurance
  • before we agree to renew, extend, vary or reinstate your policy.

Your answers will help us decide whether to insure you, and on what terms. Each question we ask you is important. Please answer each one fully, accurately and honestly.

Your duty to us

You have a legal duty under the Insurance Contracts Act to take reasonable care not to make a misrepresentation to us. This duty first arises when you enter into an insurance contract with us.

Before we agree to renew, extend, vary or reinstate your policy, we may remind you of your previous answers to our questions. Your duty extends to telling us whether any of this information has changed.

Failing in your duty can seriously affect your cover

If you fail in your duty, we may, where permitted by law, do either or both of these:

  • cancel your policy
  • reduce the amount we pay you if you make a claim.

If your failure is fraudulent, we may refuse to pay a claim and treat the policy as if it never existed.

Permitted Use Of The Car

If you insured your car with us, you won’t be covered if it’s used for any purpose you haven’t declared to us. What you can use your car for is shown on your Insurance Certificate, and will be one of the following:

  • Private and/or Commuting
    Car is used for social, domestic and pleasure purposes, as well as travelling between home and a regular place of work only. Does NOT include ridesharing for payment, e.g. UberX.

  • Private and Occasional Business
    Car is used for social, domestic and pleasure purposes, as well as travelling between home and a regular place of work. It also includes occasional business use by the regular driver or their spouse only. Occasional business means the car is not registered for business use and is not an essential part of earning income from such business.

  • Private and Business
    Car is used for social, domestic and pleasure purposes, as well as travelling between home and a regular place of work. It also includes use for the business of the regular driver or their spouse and only provides cover for drivers listed on the policy.

  • Business Only
    Car is used for the business of the regular driver or their spouse and only provides cover for drivers listed on the policy. It also includes use for social, domestic and pleasure purposes, as well as travelling between home and a regular place of work.

Uses that are never covered

  • Carrying passengers for payment (including taxis and/or ridesharing, e.g. UberX)
  • Making deliveries or carrying other people's goods for payment (whether as a contractor or otherwise)
  • Driving tuition for payment
  • Hiring the car out to other people, including under peer to peer car sharing arrangements

Use that’s always covered

Whatever policy you choose, you will be covered for private car sharing and voluntary home or community service (providing you’re not profiting from it).

Excess On Claims

An excess is the amount you have to pay towards each claim.

A basic excess applies to all claims. It will be a standard amount, unless you’re paying a higher excess to get a lower premium.

Additional excesses apply when the car is driven by someone who is not an excluded driver, but who:

  • is under 21 years of age ($600)
  • is aged 21 to 24 years inclusive ($500)
  • has not held a full or open Australian licence for 2 or more years ($500)
  • is not listed as a driver on the Insurance Certificate ($600)

Drivers

Any household members who might drive the car during the insurance term (including Learner, Provisional and occasional drivers) need to be listed on the policy to be covered while driving the vehicle.

Any non-household members who might drive the car during the insurance term will be automatically covered if they’re not listed on the policy, subject to any restrictions on the policy. However, they will incur an additional excess as previously mentioned.

Additional Benefits (Optional)

For an additional premium, optional ‘Accident Hire Car’ provides you with a hire car for up to 14 days if we accept your claim (or a compact hire car, if you’re making a claim on a motorcycle). Your policy already covers a Hire Car Following Theft. 

Reduced Window Glass Excess is another optional benefit that lets you pay an additional fee on your premium to pay a lower excess if it’s only your car’s window glass that needs repairing. This benefit is also available for motorcycles, under “Reduced Windshield Excess”.

You can reduce this excess only within 21 days of buying your policy or renewing it.

Note: You only receive these benefits if they appear on your Insurance Certificate.

Policy Coverage

What’s the difference between Comprehensive, Third Party Property, Fire and Theft and Third Party Property Only Car Insurance policies?

 

Your Vehicle

Third Party's Property

Liability

Comprehensive

Yes

Yes

Yes

Third Party Property, Fire & Theft

No

Yes

Yes

Third Party Property Only

No

Yes

Yes

Comprehensive Car Insurance covers you for the damage your car does to other people's property, as well as repairs to your car up to the amount it is insured for.

Third Party Property Only covers you for the damage your car does to other people's property. It also includes limited cover if your car is damaged in a No Fault Accident with an uninsured vehicle.

Third Party Property, Fire and Theft covers you for loss or damage to your car if it’s stolen or catches fire, as well as any damage it does to other people's property. It also includes limited cover if your car is damaged in a No Fault Accident with an uninsured vehicle.

It does not cover damage caused when someone tries to steal your car, or for any items stolen from the car.

Note: This policy is only available when the insured car's total value is less than $20,000.

For more details, read our Product Disclosure Statements

Insurance We Do Not Offer

Compulsory Third Party (NSW CTP), often referred to as the ‘Green Slip’, covers you for personal or fatal injury caused to another person as a result of a vehicle accident.

Note: If you need a NSW CTP policy, please visit the CTP page on our website.

What personal effects are associated with car insurance?

Personal effects are any personal belongings in your car at the time of an accident. When you take out Comprehensive Insurance with Budget Direct we cover any personal effects damaged by a collision involving your car. If you hold a Gold Comprehensive Insurance policy you will also be covered if your personal effects are stolen from your car.

Note: Limits apply. For more details, read our Product Disclosure Statement.

What is a No Claim Discount (NCD) and how does it affect Car Insurance premiums?

A No Claim Discount reduces your Comprehensive Car Insurance premium, and is based on your driving experience and claims record.

For each year you drive without making a claim you receive a discount from the full-priced premium until it reaches a maximum discount (known as Rating 1).

What’s the difference between Rating 1, No Claim Discount (NCD) and No Claim Bonus (NCB)?

Rating 1, NCD and NCB are different terms insurers use to rank your driving history and risk. They all refer to a discount applied to the full premium, which may appear as either a percentage or a rating on your Insurance Certificate.

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