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When insuring your car, you need to weigh up the benefits of the different kinds of policies. For instance, if you have a $90 000 BMW, it probably wont be enough to just have compulsory third party insurance, because if you have an accident and it’s determined that it was your fault, you’re going to be out of pocket a lot of money. Here is a basic guide to the different types of insurance you should consider when insuring your car.
Compulsory Third Party
Compulsory third party insurance or "Green Slip" is absolutely essential for registering and driving your car. In fact, it’s illegal not to have it; you must have it for registering a vehicle. Its call third party, because it ensures that should you have an accident involving another party you are not legal liability to pay the damages awarded in the event of a personal injury claim. This does not cover damage to property or other vehicles, which is why you may consider purchasing third party property insurance too.
Third Party Property
This insurance covers drivers for damaged caused to a thirds parties property, including there vehicle. This is an ideal way of ensuring a reasonable amount of cover while keeping costs down, and is ideal if you don’t think your vehicle is worth enough to comprehensively ensure. Generally cover extends up to $20 million in damage from any one accident anywhere in Australia. For safe drivers who want a certain level of cover for themselves and not just other road users, its worth considering a third party property fire and theft policy.
Third Party Property Fire and Theft
Third party property fire and theft covers drivers for the damage they may cause to a third parties property as discussed above. However, this policy ensures that your vehicle also has some coverage in certain circumstances. This policy is ideal for safe drivers, and gives cover in the event of loss or damage to you vehicle in the case of fire or theft. If drivers would prefer complete peace of mind, then comprehensive care insurance is a must.
Comprehensive Car Insurance
Comprehensive car insurance is essential for drivers whose car is worth a reasonable amount and is expected to last for an extended period of time. Comprehensive car insurance is also reasonably priced for drivers over the age of 25, but for drivers who are under 25, and in particular male it can be quite expensive.
Comprehensive car insurance covers drivers for third party property damage (up to $20 million) as well as loss or damage due to fire and theft. It covers your vehicle in an accident regardless of fault, but requires that you pay an excess, which is dependant on your age and claim history. All insurers offer extras, which may include hire car and windscreen cover, paying for towing to the nearest repairer, limited cover for damaged property or completing temporary repairs to make your car drivable.
