We don’t always know what’s going to happen on the road. No matter how much of a good driver you are, accidents happen, and in fact driving a car is one of the most dangerous things you can do.
Repairing the costs of accidents would extremely expensive if you were pay for the damages out of your own pocket. That’s why having the right insurance in place ensures that you’ll be financially prepared in the event of an accident.
We’ve had a look at the different types of insurance available, and how to make sure you’re getting a good deal.
Compulsory Third Party (CTP) Greenslip
This is the most basic and cheapest form of insurance cover. This kind of insurance protects you as the vehicle owner, and other drivers of your car from any legal liability if you injure another party and they make a personal injury claim. It’s compulsory everywhere in Australia, however, CTP Greenslip insurance does not cover your injuries, damage to your property or damage other people’s property.
Good for: Those who very rarely drive, and when they do, only for short distances in low-traffic areas.
Third-party only cover is another very basic form of insurance, and protects only other people and their property if you damage their car in an accident. While it is one of the cheapest kinds of insurance you can buy, if your own car is also damaged in the accident, you won’t be covered by your policy unless the accident wasn’t your fault. If it is the other person’s fault, their insurance will cover the costs of repairing your damage, so you’ll need to make a claim. But, If your car is stolen or damaged by fire or natural causes such as weather, you won’t be covered.
Good for: Those who don’t drive frequently and may have a very old car model which can’t be insured for much.
Third party, fire and theft cover
This kind of insurance is sold as a kind of ‘add-on’ to third party cover, and it adds protection if your car is stolen or damaged by fire. This is usually only up to a certain amount, so check with the insurance provider what the maximum benefit amount is.
Good for: Those who may have a slightly newer or more expensive car model, but usually leave their car parked on the street overnight.
Fully comprehensive car insurance
The best option for those who want complete peace of mind, comprehensive car insurance means that your insurance company will pay for the cost of repairs, no matter who is to blame in an accident. Most comprehensive policies will also cover you if your car is stolen or damaged by a fire or storm. This is the most expensive type of insurance, and premiums will be higher, but it’s worth it particularly if you have a newer car model.
Good for: Those with newer, more expensive cars, and everyone wanting peace of mind.
Preferably, you want to shop around for the best insurance policy for you. You should speak to someone from each insurance agency one on one, and they can help you determine the right policy for you, as well as how much you can expect to pay.
Even once you’ve chosen an insurer or a policy, don’t assume that it will always be the best for you. When insurance renewal time comes around, it doesn’t hurt to look around at your other options and consider whether your situation has changed.
So with a bit of patience and research, you can ensure you’re getting the best deal for you. Whether you’re in the market for new cars or used cars.Perth , Sydney and other major cities in Australia have a huge range of insurance providers, so there are plenty of options.