If you’re ever in a car accident, cheap car insurance can greatly assist in covering costs you are responsible for, such as repairs to your and others’ cars. The extent of coverage available ranges, as does the pricing along with it.
Looking at the ‘optional’ types of car insurance available in Australia…
With comprehensive car insurance, you’ll be insured for damage to both your car and other people’s cars as well as others’ property plus damage caused by theft, fire and weather events.
With third party property damage, you will be covered simply for damage your car causes to others’ cars and property.
Then, there is third party fire and theft, which sits in the ‘middle of the road’, covering those third party damage costs as well as fire and theft – however it doesn’t cover damage you cause to your car.
When it comes to mandatory car insurance, there is only one choice – compulsory third party car insurance. This is something every registered car owner must legally have.
Get a car insurance quote right now to ensure you are well covered!
This article explores the fullest type of car insurance – comprehensive – as well as compulsory third party car insurance.
- Comprehensive car insurance: All-round accidental damage insurance coverage is the main component of this car insurance. A comprehensive car insurance policy protects the policyholder against both damage to their own car and third-party liability. A comprehensive car insurance policy covers you in the event of an accident, fire, theft, or severe weather event. In all events, the insured must promptly notify the insurance company to make an insurance claim.
- Compulsory third party car insurance is a legal necessity for all owners of registered cars. This policy protects the insured from medical costs arising from physical harm they cause to another via a car accident. As a result, the policyholder’s financial burden is reduced.
Looking at the optional types of car insurance mentioned at the beginning of this article, know that comprehensive car insurance is more expensive than third-party property damage and third party fire and theft insurance, but it comes with a lot more features and advantages. These include being covered for the financial costs of damage to your car caused by you, regardless of fault, damage to someone else’s property or car caused by you, and theft and intentional damage. Not to mention weather events such as hail, floods and more.
It will either cover repair to your car or if the damage is too great and the car is a write-off, you will receive the funds to replace your car (based on the car’s market value or agreed value).
Before you buy a policy, make sure you read the product disclosure statement. Some comprehensive car insurance features may be common with some companies but not with others. Check to see if you’re entitled to a rental car while your car is being repaired, for example, or if you can pay for the best car insurance add-onsontop of your comprehensive coverage.
Make your decision wisely and then buy car insurance!