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Must-Have Add-ons for Luxury Car Insurance
Must-Have Add-ons for Luxury Car Insurance

Posted on December 04, 2020 | by Alex | Posted in Insurance

If there’s one thing you need to purchase for your high-end vehicle, then it’s absolutely luxury car insurance. Luxury cars are very costly to maintain and one of the main issues with owning one is the expensive repairs. Even minor damages can set you back thousands of dollars which is why securing luxury car insurance should be one of your top priorities.

One thing to keep in mind when buying luxury car insurance is selecting the appropriate add-ons. Add-ons provide extra coverage for an additional premium, thus securing your vehicle from a wide range of possible scenarios and incidents.

Having a comprehensive cover with all the important features is most often recommended by experts. But don’t be tempted to splurge on all the heavily-promoted add-ons or else you’ll end up paying more for what you don’t need. With that in mind, here are the must-have add-ons that you should get for your luxury car insurance.

Engine protection cover

The engine protection cover is bought as an additional coverage along with the comprehensive car insurance policy. This provides extended coverage towards damages or losses to your luxury car. The add-on compensates you for the replacement of the vehicle’s engine and/or its parts. This includes lubricant oil leakage, damage to the pistons or gearbox, water ingress, and hydrostatic lock.

With a standard comprehensive policy, these parts are usually not covered and hence you’ll have to fork out money from your pocket if you don’t have engine protection cover. Generally, the cost of this add-on is around 2% of the luxury car’s current market value. The model of the vehicle also affects the add-on price as well.

By having your car’s engine under the additional coverage, you’ll be able to save a lot of money by not having to bear the engine repair bills with your own money.

Depreciation reimbursement

Car depreciation is inevitable. Over time, the parts and components wear out as you drive your luxury car. Owing to this, the value of the parts go down as well. This depreciation is directly linked to the vehicle’s age. Typically, the insurer calculates the value of your vehicle’s parts after factoring in the depreciation and from there, you get the settlement amount.

Depreciation reimbursement helps protect your luxury car against all physical damages without factoring in depreciation. Although standard car insurance covers you against damages or losses when you file for a claim settlement, a depreciation deduction is calculated before you receive the compensation.

With depreciation reimbursement, the entire claim amount is paid by the insurance company. While you will have to pay more for your premium, you do benefit from the additional coverage since it eliminates the possibility of any out-of-pocket expenses.

Roadside assistance

Luxury cars are complex vehicles and typically, roadside garages don’t come with the necessary experience or expertise to handle repairs. Servicing a high-performance car requires a certain skill set which is typically available only with company-authorised service centres. The last thing you want is to suffer a mechanical failure and you can’t get your luxury car repaired.

With roadside assistance, you can rest assured that in the event your vehicle breaks down, you can phone the insurance company and help will be on the way. Roadside assistance includes the following benefits like emergency towing, fuel delivery, tire changes, and more.

Considering that a luxury car is of immense value, you don’t want to entrust it to a private towing service which doesn’t provide the same level of care and assistance that an insurance company offers.

Consumables cover

Consumables are items that need to be replaced regularly due to wear and tear. There are many items in a car that fit this description and these are the engine oil, brake oil, lubricants, screws, nuts, and bolts.

In a standard car insurance policy, these small consumable expenses are usually not covered. This means you will have to shell out your own money to if you need to replace any of these parts. With a consumables cover, however, your insurer will make a payout for the value of the items you’ve consumed.

As the cost of consumables is much higher in luxury cars, having a consumables cover will help keep the costs down in maintaining your high-end vehicle.

No-claims bonus protection

In car insurance, a no-claims bonus (NCB), or no-claims discount pertains to the number of years that you haven’t claimed on your car insurance policy. The amount of the bonus varies depending on the insurer, but an NCB of more than 3-5 years is likely to give you a huge discount on your premium.

If you make a claim on your policy where your insurer pays out, expect to lose some (if not all) of your no-claims bonus. To avoid this, you’ll need no-claims bonus protection. What this does allow you to have a certain number of “at fault” accidents without affecting the bonus you’ve accumulated. So if you were to get caught in an accident, the NCB remains intact even if your insurer can’t claim their costs back


Posted on December 04, 2020 | by Alex | Posted in Insurance

Are you underinsuring your business to save money?  

It’s not worth the risk! 

When times are tough, it’s common look at where we can cut costs in our lives. 

Unfortunately for some people with small businesses, one of the first areas they will  look at for cost-cutting will be their insurance. 

Do I really need insurance? Do I need so much insurance? How likely is it that  something bad will happen and I will need to make a claim? 

These are some rationalisations that business owners may ask themselves when  looking at ways of saving money during tough times. But while reducing your  insurance policies may save you money in the short term, it may cost you everything  in the long run. 

Being underinsured leaves businesses vulnerable. Nobody knows what may happen  tomorrow, next week or next month; and if you don’t have the right insurance cover,  it can be a disaster if something terrible happens to your business. 

Are you sufficiently covered? 

One in 10 Australian businesses have no insurance cover, and many more have  insufficient cover, meaning many businesses are being left vulnerable. If you are  questioning whether you are paying for cover that you could go without, ask  yourself if you are covered in the following circumstances: 

• Natural disaster: Anyone in Australia knows just how easy a natural disaster can  happen, and the dire impacts it can have on businesses. Catastrophic bushfires  followed by a global pandemic should be enough proof that some things are  out of our control, and that it’s a good idea to be covered against them. 

• Legal action: If a customer decides to take legal action against you, are you  sufficiently covered? If a customer, staff member or member of the public feels  they have a reasonable claim, and if your public liability insurance and public  indemnity insurance isn’t up to date, you could lose everything.  

• Damage to premises or stock: A simple break in at your premises could turn out  to be costly without sufficient insurance. A good business insurance package  includes business interruption cover, which is important during down-time while  your business closes to make repairs. Business insurance will cover you for  products that are damaged or stolen. 

• Staffing: If you have staff, you need adequate insurance for them also, including  Workers’ Compensation Insurance.

Time for an insurance check! 

If you think your business may be uninsured, the best thing to do is speak to a  professional broker. Likewise, if your business is going through a tough time and you  do need to save money, speak to your broker before you cancel any policies. They  can advise on ways you can save money while still having adequate cover, and will  look for the best insurance policy to suit your budget. 

Don’t risk it any longer, speak to Matrix Insurance today, the leading insurance broker in Perth.

What Makes Luxury Car Insurance Different from Regular Car Insurance
What Makes Luxury Car Insurance Different from Regular Car Insurance

Posted on November 17, 2020 | by Alex | Posted in Insurance

Luxury cars are often associated with the utmost comfort, performance, and drivability. If not these, then they certainly score high on the style factor. For some, owning a luxury car is a dream fulfilled while for others, it’s a perk of being born with a silver spoon. Either way, a luxury car is a status symbol. These cars are costly, and even the slightest of damage can lead to massive repair costs.

This is where having the best luxury car insurance comes in. As the name suggests, luxury car insurance offers adequate coverage for high-performance vehicles that regular car insurance cannot provide. Being aware of your car’s insurance needs is a must to ensure it’s protected from unforeseen damages or incidents. Read on to find out what makes luxury car insurance different from regular car insurance.

Why is luxury car insurance important?

There’s a reason why luxury cars are called ‘luxurious’. Because they are made of inherently expensive parts, the repairs can be expensive as well. An insurance policy for a luxury car usually has a higher premium and more add-ons than standard car insurance to cover for costly repairs and allow for greater coverage claim in the event of an accident/theft.

What are the insurance needs of a luxury car?

Luxury cars have a higher value than most other cars, which means they’re going to cost more to insure. However, these vehicles have additional insurance needs that are unique to cars of their category. First and foremost is the engine. If you have a luxury car with a powerful engine, your coverage needs are going to be higher. This is because sportier cars are likely to increase your risk of an accident.

Insurance rates for foreign luxury cars can also be higher since the replacement parts can be hard to come by in case your vehicle needs a covered repair. Theft coverage is also another thing worth considering as exotic cars are more likely to get stolen or vandalised than regular cars.

Many insurance carriers obtain theft rate statistics for each make and model of luxury car so they can base the insurance premium off of the numbers. The higher the risk of theft or vandalism, the higher the premium will be.

How a captive insurance company may not be a good fit

With all these unique insurance needs in mind, you may want to think twice before going with a captive insurance company (captives). Captives are set up by its owners mainly to insure against its own risks, allowing them to better manage risks and insurance allocations. That said, captives may not be the best fit for insuring your luxury vehicle.

In general, captive insurance agents tend to focus on getting the lowest price for their policyholders instead of ensuring luxury car owners with the coverage they truly need. Since they don’t deal with luxury vehicles very often, they may not have enough experience to meet the insurance needs of your exotic car.

As a result, this can create gaps in coverage which will come back to bite you in case your luxury car breaks down or gets into an accident. In addition to that, the insurance agent may find it difficult to answer any specific questions you may have regarding luxury car coverage since they specialise more on traditional cars.

Choosing a high-net-worth insurance company

Instead of rolling the dice with captive insurance, you may be better off choosing a high-net-worth insurance company (HNW). An HNW insurance company caters to policyholders with prestige cars, high-value homes, expensive jewellery collections, and the like.

Their specialised agents have sufficient experience and expertise when it comes to insuring luxury cars, giving you peace of mind knowing that you have adequate coverage for your vehicle. They will take into consideration not only based on your car’s make and model but your driving habits and other unique factors as well.

Should a situation arise where you need to file a claim, you can feel confident that the claim will be processed in a professional and timely manner. This is because the agents deal with exotic vehicles on a regular basis, which is something that cannot be said of your average insurance company. These are just some of the main benefits of working with a high-net-worth insurance company and it truly makes a difference when insuring your luxury car.

If you’re looking for the best luxury car insurance, your go-to option would be to work with a high-net-worth insurance company.

Buying from Insurance Brokers vs. Going Direct: What’s the Difference?
Buying from Insurance Brokers vs. Going Direct: What’s the Difference?

Posted on September 24, 2020 | by Jullian | Posted in Insurance

In this day and age of DIY culture, more and more consumers are buying insurance policies directly from an insurance company. And why not? It’s convenient, it saves money, and it’s less time-consuming compared to other options out there. If you know exactly what your needs are, then going direct is the way to go. But not everyone is keen on direct-buy insurance, especially those who are new to dealing with these sorts of arrangements.

This is where an insurance broker comes in. Everyone’s insurance needs will vary, and the job of insurance brokers is to secure the best policies for their clients. They offer professional and unbiased advice to help their clients make an informed insurance purchase. If you find yourself choosing between these two options, then don’t worry.

In this article, we’ll be taking a look at the benefits of using an insurance broker in Perth vs. buying directly from an insurance company to see which option is most suited for you.

Why use an insurance broker?

An insurance broker acts as a middle-man between their clients and insurance companies. Basically, they do the cross-comparison shopping to secure ample coverage for their clients based on their needs. Insurance brokers may specialise on a specific type of insurance (.e.g. life insurance or health insurance) or have extensive knowledge about insurance products across various industries. Brokers are licensed and governed by state regulations.

Insurance brokers earn money through sales commissions by selling a policy from the insurance carrier (which amounts to a percentage of their client’s premium). This costs the insurance company more to sell you insurance through a broker, which can affect the price they charge.

Benefits of using an insurance broker

Insurance brokers work for you by carefully analysing your options and help you acquire the most optimal insurance in a timely and stress-free manner. Their expertise ensures you are matched with the ideal policy to meet your specific needs. Most brokers are familiar with the policies of more than one company and they bring this expertise to use to filter out the right terms, coverage, and conditions.

Insurance can be pretty complex, especially to those who are unfamiliar with the jargon used in the industry. Most consumers end up buying policies they don’t need simply because they don’t have enough knowledge about insurance (which leads to more expensive premiums). There’ no substitute for genuine expertise and years of experience in the insurance field and brokers are well-versed in that regard.

What to consider before using an insurance broker

Insurance brokers get paid by the insurance company for selling you a policy. This means the final cost of an insurance policy can be much higher than a direct-buy policy. If the insurance is the same rate year after year, your policy requires payment of the commission repeatedly — and if the price goes up, the commission may go up, as well. Some brokers don’t handle claims. For that, you’d still need to go through the insurance company’s claims team. Make sure to discuss this with your broker for full disclosure.

What Is Direct-buy Insurance?

As the name suggests, direct-buy insurance is the act of buying a policy directly from an insurance company.o directly to the company’s website to buy a policy. There’s no middle-man to negotiate the purchase as it’s just between you and the insurance company itself. You’ll form a relationship with the insurance company which is a big deal to people who care about brands and reputation. This relationship starts when you apply for the policy and can continue throughout the policy’s lifespan and beyond.

Some direct-buy insurance companies are aiming for a more tech-savvy approach to cater to the new generations. Along with the standard live customer service teams and claims groups, you might encounter features like live chat, instant (same-day) downloadable policies, custom dashboards, and more. Insurance brokers might also have online platforms for you to buy insurance, but they are not the insurance company paying your claims.

Benefits of direct-buy insurance

One of the main benefits of going direct is that you’ll find lower prices on your premiums. This can be attributed to the insurance company not having to pay an insurance broker a sales commission. You also avoid some of the fees that brokers charge when they represent you. Since you’re the one buying the policy, you won’t have to deal with sales pressure and you can comfortably make choices all on your own.

Buying directly from an insurance company is usually fast and easy. Depending on the company, you may even be able to get last-minute coverage.

What to Consider About Direct-Buy Insurance

Direct-buy insurance is recommended for those who understand their needs and know which policies to purchase. When shopping around, try to obtain quotes from various insurance companies to compare prices. Buyers who have more complex insurance requirements may need to have a policy customized, and it may take time and experience to explore those options on your own.

Thermal Imaging: How to Use it to Protect Your Business from Electrical Faults
Thermal Imaging: How to Use it to Protect Your Business from Electrical Faults

Posted on September 15, 2020 | by | Posted in Insurance

We’ve all heard that old adage, “prevention is better than cure”. And when it comes to protecting your business from electrical faults, it’s surely an adage worth paying attention to. Faulty electrical equipment is one of the leading causes of workplace fires in Australia and it can have a devastating impact on your business. From being unable to operate to potentially losing specialised equipment, minimising electrical faults is crucial to protecting your business from huge financial losses.

This is where thermal imaging comes in. In this article, we’ll discuss what thermal imaging is all about and how you can use it to prevent electrical faults inside your establishment.

Why use thermal imaging

Thermal imaging is one of the most cost-effective ways of managing electrical faults. It ensures there are no hidden faults underneath a switchboard, distribution board or any heat-emitting device for that matter. It could save a company from a whole lot of trouble, not to mention a whole lot of money as well. Over the years, the cost of thermal imaging has decreased significantly, making it even more accessible to businesses of all sizes.  This can prove to be a huge difference-maker in terms of spotting an issue in advance or overlooking a serious problem that could come with catastrophic consequences.

By using thermal imaging in your switchboards and other pieces of electrical equipment, you can detect anomalies in the hot spots early on address them immediately before they turn into a major issue. When a piece of equipment fails, you face significant downtime along with the additional repair/replacement costs. If there are dangerous conditions within the switchboard, it could catch fire or induce or induce an electric shock to employees in close proximity, and that could otherwise be fatal.

How does thermal imaging work

Thermal imaging is conducted by an infra-red camera that scans electrical equipment and captures different levels of infrared light. This then tracks the heat emitted by the scanned equipment and detects its surface temperature. 

A thermal imaging scan of the equipment is produced. These can identify areas of the equipment that are working properly, those that require careful monitoring, and those that require immediate maintenance.

The imaging scans can then be used as part of an agreed maintenance schedule. By identifying equipment and infrastructure that are at risk of electrical faults, it’s much easier to implement an improvement plan that’s safe, accurate, and timely.

Not only does thermal imaging mitigate business interruptions, but it also circumnavigates a whole host of other problems that could prove financially devastating if left unaddressed.

How often should you conduct thermal imaging?

How often a specific business needs thermal imaging depends on a number of factors such as the type of equipment used and the amount of load the system is under. Since each business is unique, there are no set of standards regarding the frequency of thermal imaging.

For example, in a regular office building, we suggest conducting thermal imaging scans every one to three years, taking into account the size of the building and the nature of the business. A manufacturing site, on the other hand, has much high power drain on the electrical systems, which makes thermal imaging necessary at least annually. If it’s a mining site, potentially every week if possible.

Ideally, you should be balancing the load you’re putting onto the system. It helps to know the equipment you’re using as well to limit the risk of something going completely haywire. This is especially important if you’re renting your business. For businesses that rent their premises, it’s a good idea to know where the responsibility for system maintenance and thermal imaging falls. While the building’s electrical system is usually the building owner’s responsibility, the load that’s placed on it (along with the equipment used) is mostly down to the tenant. If you’re unsure about this, make sure to clarify with your landlord.

In such an instance, it’s safe not to assume. If there’s not an agreement in place, there needs to be a conversation. Sometimes the tenant pays, sometimes the building owner, sometimes it’s split between the two.

Using thermal imaging for your business

Using thermal imaging requires experience and expertise. It’s wise to leave this to professionals that are well-versed in using a thermographic camera. These individuals know how to conduct, scan analysis and can recommend the ideal corrective action to limit potential electrical faults.

Commercial electrical contractors sometimes offer thermal imaging as an additional service – and if not, they should be able to recommend an accredited professional to their clients. Once you’ve found the right people to hire, the first thing you should do is acquire a baseline assessment. What this does is identify immediate problems and be a point of reference to compare future scans with. It can also provide significant comfort to you, as a business owner, that you’ve got full visibility on the electrical risk of your business.

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