Our Sites:
The middle option: third-party property damage
Compulsory third-party insurance covers only injury or death to any third-party in an accident that is your fault. If you damage a particularly expensive vehicle belonging to a third-party, CTP will not cover the cost, meaning that you could be left with deep regret for only taking out the most basic (required) insurance.
Third-party property damage policies may offer you up to $20 million cover for damage caused to other vehicles. In addition, whilst not as thorough as comprehensive car insurance, some third-party property damage policies will offer you reimbursement (in the region of $3000) for damage caused to your own vehicle by an uninsured, at fault third-party driver (usually if you can identify the other driver to your insurance provider). As another option (for an additional premium), some companies may offer you some compensation for fire and theft in relation to your own car.
Benefits of comprehensive car insurance
Whilst third-party property damage insurance may offer limited amounts of cover for damage to your vehicle (which could still be a compromise worth considering), you may wish to seek much greater cover for the best possible peace of mind. Being the most complete (but also the most expensive) form of insurance, comprehensive indemnity safeguards against all damage to your own car, as well as all damage caused to other vehicles. Under such a policy, if an uninsured driver runs a red light and hits your car, you are covered for all damage to your own vehicle. Likewise, you will be covered for all damage to your car and any other vehicle if an accident is your fault.
Comprehensive car insurance might offer coverage for legal costs and damage to other people's property (especially vehicles) for up to $20 million. It also offers added assurance by covering costs if your car is hit by an uninsured driver. Needless to say, without comprehensive insurance, any accident, whether your fault or not, can cause major grief. Whilst the cost of comprehensive insurance can be difficult to afford, it’s worth considering that most insurance providers allow monthly payments, which can help spread the burden of regular expenditure. This option is applicable to most other types of insurance policy also.
Comprehensive insurance offers the ultimate confidence, but do you need the maximum cover (and highest monthly premium)? It’s best to buy whatever cover you can afford, although it’s worth considering the cost of damage to an expensive third-party vehicle if you opt to just take out CTP insurance; it only takes one accident without insurance involving a very expensive car to throw financial plans into disarray.
