Simplify the insurance conversation

Last updated on October 21, 2021

So, a customer has visited your dealership and is making all the right noises about purchasing their next vehicle from you. They’ve asked about their insurance options (or you’ve floated the idea of insurance with them). What next?

As an organisation that provides insurance, it can be challenging to know where to start when giving information about a product. The onus is on you to give your customer as much detailed information as you can – and highlight policy inclusions and benefits.

This may seem daunting at first. But your customer will thank you if you can enlighten them about the policy inclusions should they have to submit an insurance claim.

Not all insurance policies are created equal, so let’s look at the standard inclusions Allianz has in its comprehensive vehicle insurance policies.

Australian consumer law requires car parts to be fit for purpose, but that doesn’t mean that they need to be ‘genuine’ parts.

Genuine (or Original Equipment) parts are those parts that manufacturers use at the factory when they make one of their vehicles. OEM (or Original Equipment Manufacturer) parts are produced by companies that are contracted to provide components to car manufacturers. They are identical to genuine parts but generally offer a cost saving to vehicle service centres when they are used.1

Allianz’s Premier Motor Insurance policy uses genuine and OEM replacement parts2 when a customer’s vehicle undergoes an accident repair. Genuine parts come with plenty of benefits and peace of mind – if your customer is investing a new car they might want to consider how they want it taken care of in the future.

Customers may not make an easy distinction between ‘Choice of Repairer’ and ‘Insurer Preferred Repairer’, but the wording can make all the difference if they want to choose where to get their car repaired.

When ‘insurer preferred’ is specified in a policy, it can mean customers having to take their vehicle to a repairer outside of their local area and potentially longer waiting times due to their vehicle not being a priority. The repairer will be on an agreed panel for the insurance provider, but they might not have anyone that meets the customer’s preference.

Choice of Repairer is all about giving the customer the flexibility to choose what suits them at the time they need it most. Does the customer have a preferred repairer they already have a great relationship with? Are they keen to make sure the location is close to home, or work? Perhaps they’re looking for a specialist in their vehicle, someone who understands the brand and model needs of their car?

If they are, then finding a policy that offers Choice of Repairer might be a key consideration to add to their list.

The drawback for having a ‘choice of repairer’? The inclusion can sometimes mean a higher premium for the customer.

Both Premier Motor Insurance and Allianz Motor Insurance (for pre-owned vehicles) offer this great benefit as standard.

Most customers wouldn’t be able to afford to buy a new vehicle if they wrote theirs off. New-for-old replacement means they don’t have to worry about that happening.3

Most comprehensive insurers include new-for-old replacement cover in their policies, but some are better than others when it comes to validity periods. Allianz provides generous terms by offering a new vehicle replacement if a customer’s car is written off within three years of registration and was purchased new (or as a demonstrator) from your dealership for Premier Motor insurance, and two years for Allianz Motor Insurance.3

If a new replacement vehicle isn’t available, Allianz will provide its customer either the market value or agreed value of the vehicle, whichever is applicable.

Sifting through the fine print in an insurance policy can be a bore, particularly if you’re having to draw comparisons between one insurer’s policy and another. But by focusing on the policy inclusions to your customers – and talking them through the options available – you can help demystify seemingly complex concepts and light the insurance path ahead.

  1. Australian Automobile Aftermarket Association, Choice of Repairer Code of Practice, April 2015 (PDF, 62KB)
  2. If we accept a claim but are unable to fix a damaged part, where available in Australia at time of repair, we will use a new genuine manufacturer part, if new genuine is not available we will use genuine reconditioned or recycled manufacturer parts or Australian Design Rules certified new, recycled or reconditioned parts.
  3. If your vehicle was purchased new or as a demonstrator model by you, and becomes a total loss within three years (for Premier Comprehensive Insurance) or two years (for Allianz Motor Insurance) of the starting date of the original registration, we will replace your vehicle with a new vehicle of the same make, model engine size, features and paint type including any modifications, options and accessories, if such a vehicle is available in Australia.

Premier Motor Insurance, Motor Insurance, Extended Warranty Insurance and Compulsory Third Party (CTP) Insurance are provided by Allianz Australia Insurance Limited (Allianz) ABN 15 000 122 850, AFS Licence No. 234708. Any advice here does not take into account your objectives, financial situation or needs. Terms, conditions, limits and exclusions apply. Before making a decision please consider the relevant Product Disclosure Statement (PDS)/Policy Wording, Supplementary PDS (where applicable) and PDS update (privacy notice). These, together with the relevant Target Market Determination, are available on the Allianz Dealership Insurance website.

This article has been prepared by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL234708 (“Allianz”). Information contained in this article is accurate as at 30 August 2021 and may be subject to change. In some cases, information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way.

Any opinions expressed constitute our views at the time of issue and are subject to change. Neither Allianz, nor its employees or directors give any warranty of accuracy or accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in this article.

Allianz acknowledges Aboriginal and Torres Strait Islander peoples as the Traditional Custodians of the lands on which we live and work across Australia. We pay our respect to First Nations Elders past and present.

Any advice here does not take into account your individual objectives, financial situation or needs. Terms, conditions, limits, and exclusions apply. Before making a decision about this insurance, consider the relevant Product Disclosure Statement (PDS)/Policy Wording and Supplementary PDS (if applicable). Where applicable, the PDS/Policy Wording, Supplementary PDS and Target Market Determination (TMD) for this insurance are available on this website. We do not provide any form of advice if you call us to enquire about or purchase a product.

Allianz Australia Insurance Limited ABN 15 000 122 850 AFS Licence No. 234708 is the insurer of any general insurance products offered, and Allianz Australia Life Insurance Limited ABN 27 076 033 782 AFS Licence No. 296559 is the insurer of any life insurance products offered. Each entity is responsible for any statements and representations made about its products, on this website.