Car Insurance

There are a number of types of car insurance policies offered by insurers, depending on the state and insurance company.

Comprehensive policy

A Comprehensive policy insures you for the cost of repairs/replacement of your car and property, regardless of who's at fault. Some policies may also include the cost of a hire car, emergency repairs and cover other drivers.

CTP Insurance

Compulsory Third Party insurance provides cover to drivers who cause injury to another person, including drivers, passenger, motorcyclists, cyclists and pedestrians. CTP Insurance is handled differently in each state and is best to consult your state government for the relevant process.

Third Party Fire and Theft

A Third Party Fire and Theft policy will generally insure you for damage or the loss of your car if due to a fire or theft of your car. It may also cover you for damage that your car does to other peoples property.

Third party property cover

A Third party property cover policy will provide coverage for damage to other peoples property or vehicle but not your own vehicle. Coverage generally includes legal costs.

Excess

Car Insurance policies will have an excess amount, which represents the amount you will have to pay if you were to need to make a claim. There are a number of different types of excesses including a Basic excess, Voluntary excess and an inexperienced driver excess. The Basic excess is the payment you would need to pay if making a claim. The Voluntary excess is an additional excess you may choose to pay. By taking an additional excess you can generally lower your insurance premiums. You need to think carefully here about the trade-offs with a voluntary excess and if it is right for your circumstances. The Inexperienced Driver excess is an additional excess imposed by insurance companies when the drive is inexperienced. An inexperienced driver is generally defined as being under 25 years of age, for insurance purposes.

Choosing the right policy

It can be a little daunting choosing a policy due to the large number of companies offering policies. The Car Insurance market has becomes very competitive. There are a number of things to keep in mind when making your choice, including:

  • Ensure you understand the terminology used by insurance companies
  • Enquire as to how you can lower your premium
  • Establish your budget
  • Have all your vehicles details handy
  • The type and amount of coverage
  • Read the fine print before deciding
  • Decide what coverage you actually require