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The Reason Why Bingle Insurance Is So Cheap

A price comparison table found on Bingle’s website

Slowly as Australians look for new ways to save money, the insurance sector is also struggling with their traditional business sales. New innovative ways had to be introduced to keep up with technology as well as the cost customers are willing to pay.

Many people have wondered why Bingle is such a cheap insurer and the reason to why they are so popular. First of all, they are owned by Suncorp. For those that have a bit of knowledge behind Suncorp, you would know that they are one of the biggest financial companies in Australia. Being able to take on them for your insurance needs can definitely give a peace of mind knowing that they will have good back up. No doubt this is one factor that has contributed to their popularity.

But the further step that Suncorp had taken is by letting Bingle be a pure online insurer. This means overhead expenses like branches, buildings, some documents and utilities can be wiped from their expenditures, leading to lower quotes to the customer. And because there is an internet website for customers to manage their own policies, there is no need to have staff process a majority of forms.

Doing a bit of research it is stated on their website that a quote starts at only $1.55 a day. This gave a price that was almost half price compared to other insurers like Coles, NRMA, Allianz and Budget Direct.

Other than that, another bonus that Bingle offers is rewarding claim-free drivers. This means for those that have not made any claims will be able to enjoy further discounts on their premiums.

For more information about Bingle, please check out our Bingle Insurance review where you can read further information about the types of policies they offer.

How To Check You Have the Right Insurance Cover

If you’re a safe driver with a good, no claims history, then paying for car insurance can seem like a complete waste of money. After all, you’re not actually getting anything in return for all your hard earned cash are you?

However, as anyone who has ever been involved in a car accident will tell you, the importance of having the right insurance policy with a good insurance provider should not be underestimated. If and when you do need them, knowing you will be well looked after and protected provides peace of mind and can help turn a terrible situation into something more positive and bearable. In that case, a good policy is priceless.

But how do you know what cover you need and what other information should you be aware of to make sure you are getting the very best deal?  Car insurance from Captain Compare, or another online car insurance comparison site helps to take some of the legwork out of searching for good deals, but you need to know what you’re looking for in the first place.

Here is our guide to the various different types of car insurance that should help you make the right choice:

Compulsory Third Party Insurance (CTP)

Compulsory Third Party Insurance (or Greenslip as it’s better known as in NSW) is the very minimum insurance cover you can legally have and it applies to all states in Australia. It protects vehicle owners and drivers who are legally liable for personal injuries caused to:

  • Your passengers
  • Other road users such as; drivers, pedestrians, cyclists and motorcyclists

It also covers you for injury caused through the use of a trailer.

In most states CTP is included when you register your vehicle.  However, in QLD and NSW you have the option of choosing your insurance provider.

CTP does NOT cover you for any damage to your vehicle or anyone else’s vehicle.  Damage to property is also excluded from this type of policy.

Third Party Property Damage

Typically, this will be the most inexpensive type of cover you can buy, and is the minimum non-compulsory policy after CTP.

It will cover you in the event of damage caused by your vehicle to other people’s vehicle or property.

Third Party Fire and Theft

In addition to all the cover provided by Third Party Property Damage, this type of policy also covers you against theft or fire damage to your car. A maximum level of cover will usually apply, so check the small print for details.

Comprehensive Car Insurance

This is an insurance providers highest level of cover, and will offer you the most features and benefits of any policy.  Comprehensive cover covers the cost of repairing damage to both your vehicle and others, in addition to protecting you against theft or loss.

Additional benefits usually include a hire vehicle, towing after an accident, emergency repairs, and much more.  Carefully check what each insurer is offering you, and decide what would be of most benefit if the worst were to happen. Although it is important to find a good deal, it’s more important to choose the policy with the best cover for your money. Cheap isn’t always cheerful!

Put on Your Thinking GAP: A Guide to GAP Insurance

gap-insuranceThat said, GAP insurance is incredibly useful, regardless of whether or not you find it interesting. In fact, the decision to purchase GAP insurance might be one of the smartest decisions to make when purchasing a new car.

After all, accidents are somewhat inevitable—especially if you’re raising teenagers. Experience has taught me that it’s better to be prepared than it is to trust your luck (or the dealer from whom you’re purchasing your vehicle) and hope everything works out.

Now, for those of you who have been operating under the assumption that GAP insurance is part of your dental payment plan, allow me to explain: GAP insurance (also known as Guaranteed Auto Protection or Guaranteed Asset Protection) is a policy that covers the difference between the actual cash value of the vehicle and the balance you still owe. This comes in handy if you (or those rambunctious teenagers you’re trying to raise) happen to crash that brand new car you just bought.

Here’s an example—say you purchase a car for $15,000 (with a down-payment of $2,000). You’re leaving the dealer’s lot when you’re gripped by a sudden and ferocious fit of sneezing that causes you to lose control of your car and crash headfirst into a minivan packed with teenagers.

Now, normally, you’d be in pretty hot water. After all, the value of a vehicle depreciates the minute you drive it off the lot—sometimes by as much as 25-30%. This means that, even in a world where your new car isn’t a mangled piece of garbage, you still wouldn’t be able to sell it for much more than $12,000.

Let’s say, for the purposes of this example, that the minivan does $5,000 worth of damage to your new car. Your “brand-new vehicle” is now worth $7,000. This is a huge problem, since you still owe the dealer $13,000. Where are you supposed to get that extra $6,000?

Luckily, you’re an intelligent, forward-thinking individual who researches automobile insurance so, naturally, you chose to pay a little bit extra to purchase GAP insurance. While it’s pretty unfortunate that you functionally paid someone $2,000 to crash a car, the situation could have been worse. If you hadn’t purchased GAP insurance, you’d be out $8,000 (as opposed to $2,000).

As you’ve probably already realized, GAP insurance is more of a debt cancellation agreement than an actual insurance policy. That said, it’s worth investing in—especially if you just bought a new car. It’s easy to find, relatively cheap and it can save you major headaches in the long run.

So prove you don’t have a gap where your brain should be! Purchase GAP insurance!

Erin Patrick is a car enthusiast and has been associated with the automobile finance industry for nearly 10 years. She enjoys writing on the subject and helping consumers and businesses alike find the best car financing available.