Car Insurance In Australia – If you own and drive a car in Australia, you are required by law to have at least one type of car insurance: Compulsory Third Party Insurance (CTP). But with so many other car insurance options available, choosing the right insurer for your needs can be confusing.
It’s tempting to go for the cheaper alternative, but if you don’t have the right cover, it could end up costing you more in the event of an accident. Car owners do well to know the types of insurance available and each type of insurance coverage.
Car Insurance In Australia
Third party car insurance covers damages and injuries caused to other people in an accident. Third party insurance can include different types of insurance:
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CTP is compulsory insurance for every car legally registered in all Australian states and territories. It is illegal to drive without at least this amount of insurance. Some states and territories automatically include CTP insurance as part of the enrollment process, while other states allow you to choose your own CTP insurer and buy your policy separately.
CTP covers people who may be injured if your vehicle is involved in an accident. However, it does not cover injuries to the driver and passengers of your car, nor does it cover damage to your vehicle or other vehicles or property.
You pay the lowest premium for CTP insurance but get less coverage; however, in the event of an accident, you may be liable for a large amount.
This insurance covers damage to other vehicles and property in the event of an accident. Although some insurance companies may pay some compensation, it will not cover damages to your car if your car is involved in an accident with an uninsured vehicle.
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In addition to third party property protection, this insurance also protects your vehicle against damage or loss in the event of fire or theft.
As the name suggests, comprehensive insurance covers your car, other vehicles (if your car is at fault), property and anyone involved in an accident. This also includes theft, fire, arson and some weather events.
But it is important to remember that there are some exceptions to comprehensive insurance. Review the policy document carefully to avoid last-minute surprises.
Whether you have a new or used car, comprehensive insurance can be beneficial, even if you have to pay a higher premium. Car comprehensive insurance is a very competitive market, so it is often a good idea to compare car insurance from different companies.
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Insurance premiums take into account many factors such as the type of policy, your driving experience, insurance history, type of vehicle, intended purpose and even where the car is parked.
The age and driving experience of the designated driver is an important factor. Since young and inexperienced drivers are more at risk, they also attract higher premiums. Insurance companies consider any driver under the age of 25 to be a major liability.
If you live in a multi-car household, you may be able to cover all of these vehicles with one policy. Multi-car insurance can usually cover 2 to 5 cars and can help reduce paperwork as only one payment is required. Some insurers may also ask for a discount on such policies, but as they cover other drivers, their age and driving history may affect the premium.
Rental cars require CTP insurance when registered in Australia and often include insurance cover as part of the rental agreement. However, if your car is damaged or stolen while driving, you could end up paying expensive premiums. This surcharge may be reduced or waived if you agree with the rental agency prior to paying the surcharge.
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Some general car insurance policies have rental car excess coverage to help cover additional rental car costs if needed. However, this additional insurance will increase your premium, so it’s more useful if you plan to rent cars regularly.
This article was reviewed by Eden Radford as part of the fact-checking process prior to publication.
Home and Personal Finance Editor Mark Bristow is an experienced analyst, researcher and producer. While he focuses primarily on Australian mortgage and home loan expertise, he also has experience in energy, home and travel insurance. Mark has been a financial industry journalist and writer for over ten years and previously researched and wrote about commercial real estate for CoreLogic. Since then, Mark has worked on the winning Expedia team and published articles in Lifehacker and Business Insider.
Car insurance 24.09.16. 4 min read Can I get car insurance after an accident? You get car insurance after an accident. However, the purchased policy only covers future accidents and not the accidents you are currently involved in. Peter Terlato Personal Finance Edito Buying a new car is the second largest purchase you will make in your lifetime, so it goes away. That said, you need the right type of insurance to protect yourself in the worst-case scenario.
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While comprehensive insurance isn’t an issue when buying a new vehicle, what if you’re a budget buyer looking at the used car market and want to cover damage to another vehicle?
Well, that’s what we’re going to unpack here as we learn more about all types of car insurance in Australia to create a comprehensive list of your options.
There are four types of car insurance available to Australian buyers, including comprehensive third party fire and theft, third party property damage and what is known as a compulsory third party or CTP policy.
Compulsory Third Party Insurance, or CTP, is a policy that all Australian-legal vehicles must carry.
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Although they vary in shape and size depending on the state or region you live in, the purpose of a CTP policy is the same, to cover your liability in the event of injury and/or death to a third party in an accident.
Third-party fire and theft insurance policies cover damage to another vehicle in the event of an accident, as well as damage to your vehicle due to theft or malicious fire.
These policies protect you against theft or malicious damage to your vehicle in the event of theft or fire. Depending on the policy, you may also find other things like towing, vehicle rental or uninsured motorist damage.
Third-party property insurance policies cover the costs of repairing or replacing another vehicle in an accident, but not your vehicle.
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As the name suggests, these policies cover damage to third-party property, but not the cost of repairing or replacing your vehicle, regardless of who is at fault.
Comprehensive insurance is one-stop protection for your vehicle (your wallet) in the event of an accident.
Comprehensive insurance not only covers the cost of repairing or replacing a third party’s vehicle, but also covers damage to your vehicle, regardless of who was at fault in the accident.
In addition, the best comprehensive policies offer protection in the event of theft, storm, vandalism or fire, giving vehicle owners the ultimate confidence and peace of mind that their vehicle is protected no matter what happens.
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Insurance policies, especially comprehensive policies, have many extras on your policy, some of which can make a big difference in the event of a claim.
Some of the most valuable car insurance extras include additional compensation for damage, loss or theft of personal and valuable items in the car, roadside assistance, windscreen replacement and temporary vehicle rental costs when the personal vehicle is not in use.
Now that we’ve covered everything you need to know about insurance policies in Australia, let’s explore some easy ways to get the best deal on your next policy.
This is an easy way to lower your premium costs and reduce the excess associated with a cheaper policy.
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Buying online: Most major Australian insurers offer discounts to those who purchase premiums online, and some offer discounts to new customers.
Insurance companies offer more competitive rates to vehicle owners who keep their vehicle safely garaged rather than parked on the street overnight. Having surveillance cameras installed in your garage can also lower your insurance premiums.
If you want to cover another vehicle,