Optional Benefits in Car Insurance: Are they worth it?
Comprehensive car insurance policies usually include the features most drivers want. However, we all have different needs when it comes to our individual car cover. This is where optional benefits come into play.
With car insurance, you have the opportunity to tailor your cover. You can pay for extras based on what your needs are.
You might be wondering whether optional benefits are worth the cost for you.
Like most things, it depends.
Here, we’ll review some optional benefits that you may be eligible for. They may be available to you at extra cost.
Hire car cover after an insured incident
Imagine what you would do if you needed to get your car repaired or replaced. Would you be able to easily find transport? Could you pay for a rental car after an accident? Your existing comprehensive car insurance policy likely includes car hire after theft or an incident where you are not-at-fault. However, outside of these two cases, cover for a hire car is an optional benefit you would need to add to your policy.
If you can cover the cost of a hire car, or are willing to use other means of transport, you may not need this option. On the other hand, adding the option might be worth it for those who cannot take on a large transport expense. Your product disclosure statement will specify the number of days and maximum daily value of your car hire.
Excess-free glass repair
Another common optional benefit is excess-free glass repair. This would apply to window glass and sunroof repair or replacement as well, but not other glass that forms part of your vehicle such as a fixed glass roof panel. Anyone who has ever had a small chip in their windscreen knows that it can quickly turn into a huge crack. If you do find yourself with a fully cracked windscreen that extends through the entire thickness of the glass, you’d be happy to have opted for this additional cover. You may consider this optional benefit depending on where you spend time driving. Do you drive in locations where debris or weather is more likely to damage your windows? Excess-free glass repair cover may be a good choice for you. With this optional benefit, you get one excess-free glass repair or replacement during the period of your insurance, but only where the damage extends through the entire thickness of the windscreen, window glass or sunroof glass. This means the first time you make a claim that is accepted during the period of insurance for damage to your windscreen, window glass or sunroof glass, you won’t need to pay an excess.
Factors to consider when choosing optional benefits
Optional benefits are a great way to tailor car insurance coverage. Your lifestyle and ability to cover unforeseen costs should inform your decision. We encourage you to weigh the costs and benefits as you consider what suits your individual needs.
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Things to note
The information in this article has been prepared for general information purposes only and is not intended as legal advice or specific advice to any particular person. Any advice contained in the document is general advice, not intended as legal advice or professional advice and does not take into account any person’s particular circumstances. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives and needs.
Insurance Products (excluding Travel Insurance) are issued by RACQ Insurance Limited ABN 50 009 704 152 (RACQI) and arranged by RACQ Distribution Services Pty Ltd (RDS) ABN 35 116 361 650, AFSL 567130 and RDS' authorised representatives (including RACQ Operations Pty Ltd ABN 80 009 663 414, AR No. 234978 (RACQO)). Conditions, limits and exclusions apply.
Any advice provided by RDS and RACQO is general advice only and does not take into account your personal objectives, financial situation or needs and you will need to consider whether the advice is appropriate for you. Read the Product Disclosure Statement (PDS) before making a purchase decision on the product. You can also access our Target Market Determinations on this website.
RDS receives a commission from RACQI for the policies it arranges. RACQO receives fees paid for services it provides to RDS. Further details about remuneration are available on request prior to purchasing.
Banking and loan products issued by Members Banking Group Limited ABN 83 087 651 054 AFSL/Australian credit licence 241195 trading as RACQ Bank. Terms, conditions, fees, charges and lending policies apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the disclosure documents for your selected product or service, including the Financial Services Guide and the Terms and Conditions, and consider if appropriate for you before deciding.
Except for RACQ Bank, any RACQ entity referred to on this page is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth). That entity’s obligations do not represent deposits or other liabilities of RACQ Bank. RACQ Bank does not guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise.
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RACQ Operations Pty Ltd (ABN 80 009 663 414, AR No. 234978) and Members Travel Group Pty Ltd (ABN 45 144 538 803, AR No.432492) (RACQ) are authorised representatives of the RACQ Travel Insurance insurer Tokio Marine & Nichido Fire Insurance Co., Ltd. (ABN 80 000 438 291 AFSL 246 548) (Tokio Marine). Tokio Marine Management (Australasia) Pty Ltd (ABN 69 001 488 455, AR No. 1313066) is an authorised representative of Tokio Marine, and administers RACQ Travel Insurance as the managing agent on behalf of Tokio Marine. Terms, conditions (including eligibility criteria), exclusions, limits and sub-limits apply. Any advice is general advice only, and does not take into account your specific objectives, financial situation or needs. Before you purchase, please consider the Combined Product Disclosure Statement (PDS) / Financial Services Guide (FSG) and Target Market Determinations (TMDs) available at racq.com or on request from RACQ.
Any advice provided by RDS and RACQO is general advice only and does not take into account your personal objectives, financial situation or needs and you will need to consider whether the advice is appropriate for you. Read the Product Disclosure Statement (PDS) before making a purchase decision on the product. You can also access our Target Market Determinations on this website.
RDS receives a commission from RACQI for the policies it arranges. RACQO receives fees paid for services it provides to RDS. Further details about remuneration are available on request prior to purchasing.