Confused by car insurance? Understand it better here

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When it comes to car insurance, the cheaper the policy, the better – right? While the price might be an important factor for many drivers, there’s a lot more to finding the right cover than you might think.

Much like choosing your car, everyone has different needs, requirements and aspirations. What policy works for your aunt, might not be the best auto insurance policy for you. Thankfully, there is a wide range of car coverage available for drivers of all groups.

With many car insurance providers offering tailor-made cover for drivers, shopping around for the best policy has never been easier.

The terminology and types of car cover can appear complicated, so we’ve covered the basics below. Remember, if you’re confused by any aspect of your car insurance policy you should reach out to your provider for clarity.

 

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Compulsory third party insurance:

The territory or state you’re living in will determine the name of this kind of insurance. For example, there’s green slip or CTP – however, the concept is still the same. It’s compulsory.

Every motor vehicle should be covered before it is driven on the roads, no matter where you live in Australia. What does comprehensive car insurance cover? Click the link to find out.

  • This policy protects anyone you’re in a collision with. Whether they’re a motorist, cyclist or even a pedestrian.
  • It’s illegal to drive without this minimal cover.
  • Damage to your vehicle is not covered by this insurance.
  • Taking out other forms of auto insurance alongside this compulsory insurance is recommended, this ensures you are protected from personal and financial loss in case of an accident.

 

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Comprehensive cover:

Unlike the CTP cover mentioned above, comprehensive cover gives drivers the confidence that if something does happen whilst driving, they are also covered. Depending on the insurance company and the policy you choose, what is covered in your policy may vary. So, it’s important to shop around and find the best car insurance for you and your circumstances.

  • This is the best option if your car is in good condition
  • Covers the repairs and replacements of any vehicle that have been damaged in the crash
  • Damage to property is also covered
  • Fire damage and theft are often included
  • Weather-related damage e.g. floods
  • Damage, repairs and replacements to your property are provided

Third-party property only:

Third-party property policies mean that you’re covered if you cause damage to other vehicles or properties. However, damage to your possessions and your vehicle is not covered.

  • This policy is popular for those with a low-valued vehicle or a vehicle with issues and problems
  • Some third-party-only policies may provide cover if you’re hit by an uninsured driver. Speak with your policy provider first.

 

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And finally, how can I keep my premiums low?

Running and maintaining a car is expensive, so it’s important to keep your premiums as low as possible.

  • Park your car (preferably) in a garage or on a driveway
  • Reduce the risk of theft or damage with anti-theft devices
  • Keep a clean driving record
  • Take a defensive driving course
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