Company car or allowance? Weigh your options before purchasing.

There are several advantages with working for a company, as opposed to say, being a freelancer. Some of the obvious perks include getting a regular income (be it weekly, bi-monthly, or monthly), receiving medical insurance, and (possibly) getting bonuses or commissions. There is also the opportunity to get certain allowances, such as clothing, travel, and car. If you are offered a company car while given the option to have a car allowance (so you can pick your own car or vehicle), which should you choose? Which option would allow you to have more savings and ultimately, would be better for your situation?

It is always best to explore your options before making a decision. Getting the company car definitely sounds like a good idea. Usually, companies that offer a company car to its employees also give out a small allowance for fuel or allow employees to have fuel costs reimbursed when they claim business mileage. Bigger companies might also shoulder the maintenance cost of the car, except in situations when the driver (or the employee, whichever may be the case) is obviously the one at fault.

It seems like getting the company car is a better option when you consider additional costs that owning a car or a vehicle entails. As an employee, you are not responsible in paying for any unexpected bills. For instance, company cars also come with car insurance. Since the company already pays for this, you don’t have to worry about any monthly payment or other insurance-related concerns (except of course, when you are involved in an accident). You also don’t have to worry about the car during times of depreciation or model recall. Since the car belongs to the company, it is up to them to decide whether they would change the car for a newer model. Companies often opt for a newer model since maintaining an older model (or vintage vehicles) are costly, especially since spare sparts are not always available in every car shop.

Also, companies would like to give a good first impression to their clients and customers, so they often choose the classier models among the newer ones. This is also another good reason to go for the company car option. Given your monthly salary and your monthly expenses (and possibly, in addition to the status of your savings account), you may not be able to afford the same model as the company car. Of course, it is also possible that the model of the company car doesn’t suit your family’s needs. In the end, only you will benefit from owning the vehicle and you’d still have to spend for the transport needs of your family.

However, keep in mind that the company car, like a car allowance, is also taxable. Usually, this amount is not a problem but it can be if the company doesn’t offer fuel benefits. Weigh your options first before making a decision. Don’t hesitate to ask questions from your employer. This way, you can calculate all your possible expenses and come up with rough estimates for each option. Only then will you able to make the correct decision that suits your needs and at the same time, allows you to perform your duties as an employee.

Car Insurance Australia

If you are looking for comprehensive car insurance or you just want the cheapest car insurance for your car then you have come to the right place to get an instant car insurance online quote and buy it immediately. We compare policies from many different car insurance providers so you can find a deal to suit your budget or find a policy to cover everything possible if the price is not a concern. Everytime we find a new Australian car insurance company we will add them to the site.

There are 2 types of car insurance that providers normally offer and they are third party and comprehensive, if you are in NSW you must also have the compulsory third party (CTP) insurance.

The cost your car insurance will depend on many factors including your age, driving history (if you have made claims before), your suburb, and the type of car you are driving. Each insurance provider will give a different cost to each of these factors so to get a good price you should do an online quote with many different providers.

Third Party property car insurance

Provides protection against costs when you damage someone else’s property be that another car or anything else. Depending on your insurer a third party policy can also include cover for damage due to fire or theft.

Comprehensive car insurance

This type of car insurance policy covers you for damange to your car and it also covers you for damage to other vehicles when you are at fault.