What type of car insurance do you need? We give you the rundown on the main types of car insurance available.
When it comes to insuring your car, the range of options and jargon used can seem overwhelming, but navigating your way through this potential minefield need not be a stressful exercise.
Compulsory Third Party – You may know this better as the “green slip”. Compulsory Third Party (CTP) insurance covers you for any injuries that occur in an accident where you are at fault.
Drivers from all states in Australia are legally required to have CTP insurance for their cars. In most states, CTP insurance is managed as part of your car’s registration, however in NSW and Queensland it must be purchased separately.
The amount you pay will vary according to what sort of car you have and who your insurance provider is, so shopping around before committing would be a wise choice.
CTP insurance will not cover you for damage to other vehicles and property incurred in an accident. For that you will need…
Third Party Property – Third Party Property covers you for any damage done to another vehicle or property in an accident where you are at fault, usually up to an amount of $20 million.
As with CTP insurance it is best to shop around, as some insurers will also cover you if you are not at fault, but the other driver is not insured.
For an additional premium, many insurers will offer fire and theft cover for your car should your car be set on fire, or stolen. Again, the offers and costs differ amongst providers so look around.
A Third Party Property policy may be your best option if you feel the value of your car does not justify more expensive Comprehensive coverage.
Comprehensive – Comprehensive insurance provides you with complete coverage for your car for accidents, whether or not you are the driver at fault. Other incidents covered include earthquakes, storms, vandalism and even tsunamis.
Most comprehensive coverage is offered at either the “market” or “agreed” value of your car. The market value is usually what the insurance provider calculates the value of the car – based on make, model age, and condition.
An agreed value is a negotiated figure based on the market value of your car, plus these any extras like a better stereo, fancy wheels or a sunroof.
Other services like free car hire and towing may also be included with comprehensive cover, but can add to the costs when making a claim, so make sure to check out the details before you commit to a policy.