State: the traps in its car policy wording.

The first-dollar amount you pay on any claim. It's the number people forget until claim time — and it's often higher than they think.

Know your standard excess; a higher voluntary excess can cut your premium.

If a driver under 25 (or an inexperienced/unlisted driver) is at the wheel, a big EXTRA excess stacks on top of your standard one.

If anyone under 25 drives your car, find out this excess — it can be $1,000+.

A separate (often reduced) excess for windscreen/glass claims — but still a cost, and some policies don't reduce it.

Check your windscreen excess and whether glass-only claims affect your no-claims bonus.

A hire car or transport allowance while yours is repaired or replaced — capped, and often only after a not-at-fault claim.

Check if you get a rental car and for how long.

Getting the car towed and recovered after an incident — usually capped.

Note the towing limit, especially if you drive rurally.

Re-keying and lock replacement after lost or stolen keys — capped, and modern smart keys are expensive.

Know the cap if your car has proximity/smart keys.

Your belongings stolen from or damaged in the car are usually capped low, if covered at all.

Check the limit; valuable items may need contents cover instead.

If an uninsured driver damages your car and you only have third-party cover, this is all you get back — often capped at just a few thousand dollars.

On third-party cover, know this cap; comprehensive avoids the gap.

Several insurers say they won't pay — or even contribute — if the same loss is covered 'to any extent' under any other insurance policy, potentially leaving you fighting between two insurers.

Tell your insurer about any overlapping cover and ask in writing how competing policies are handled. Avoid duplicating cover that triggers these clauses.

Standard car policies cover only social, domestic and private use. Using the car for any business, courier, delivery, hire or fare-paying passenger work suspends or removes cover.

If you ever use your car for paid work, tell your insurer and arrange business or commercial cover; don't assume a private policy stretches to it.

There is no cover if the driver isn't properly licensed for the vehicle, is over the alcohol limit or drug-affected, or if the car is unsafe, unroadworthy or wouldn't pass a warrant of fitness.

Make sure every driver holds the correct licence and complies with its conditions, never drive impaired, and keep the car maintained to WoF standard.

Cover for damage to your own car caused by an uninsured driver, or under third-party policies, is capped at low fixed amounts — often $3,000–$5,000 or market value, whichever is less.

Understand the difference between comprehensive and third-party cover, and check the dollar cap on any 'uninsured motorist' or third-party benefit before relying on it.

Add-on benefits like emergency accommodation, alternative transport and rental cars carry small sub-limits — sometimes as little as $40 a day or $500 total — far below real costs if you're stranded.

Check the exact dollar and daily limits on accommodation, transport and rental benefits, and top up with travel or additional cover if you travel far from home.

Insurers exclude damage to tyres caused by braking, punctures, cuts or bursts unless it happens as part of a wider accepted claim or was malicious.

Don't expect standalone tyre damage to be covered; budget for tyre replacement as a running cost.