It’s one of those questions which often takes you by surprise when completing the paperwork for new car finance – “Do you want to add tyre and rim insurance to that?” We tend to answer on instinct, and if you’re a cautious person you might naturally opt for the insurance, if you tend to react to problems as they occur you might leave the insurance out of the car financing contract. However, there’s a lot more to be considered than just instinct when setting up your car finance Melbourne, so today we take you through some of the reasons for and against taking out tyre and rim insurance as part of your contract!
Are You Covered Under Another Insurance Contract?
Your standard comprehensive insurance may cover you for tyre and rim damage, or you may be able to add it as an optional clause. This may be cheaper than taking out a stand-alone policy for tyre and rim insurance.
Do Your Tyres and Rims Need to be Insured?
If you have chosen a high-end sets of rims, have opted for a very high quality tyre, or if you drive a 4WD which requires light truck tyres or off-road tyres, the tyre and rim insurance may be a good deal for you. However, you should carefully examine the cost and the potential benefit of tyre and rim insurance if your wheel and tyres are standard equipment.
Will Insurance Cover the Entire Amount?
One popular policy sold with car financing allows for only $1100 in claims for rims per year. If your rims cost more than this, your net benefit in the event of a claim may be quite small.
Can You Get it Cheaper by Buying Directly?
Some car financing offers (especially those offered in house at a car dealer) rely on the increased profit margins from added extras like tyre and rim insurance to make low car financing interest rates viable. Unfortunately this means you might lose out! Get the best deal you can by speaking to a Melbourne car finance broker, and then looking at your options for tyre and rim insurance throughout the entire market.