If you own a vehicle, you need car insurance. But if you’ve never purchased car insurance before, the thought of navigating these waters can be daunting. There are lots of terms to understand and the lingo can be intimidating. Here, we’ll give you a primer on the basics of car insurance in Australia so you can go into the process of finding the right insurance for you armed with all the knowledge you’ll need. The more you know, the better able you’ll be to chose the right coverage, policy, and provider for your situation.
What types of car insurance are available?
Comprehensive
This type of insurance covers the cost of repair or replacement of your vehicle regardless of whether you are at fault or not. This includes additional costs such as emergency repair service as well. Think of this as an “all-in” type of insurance.
Third Party Fire and Theft
Unlike comprehensive insurance, this type of insurance is more specific. With this type of insurance, you are covered for any loss or damage sustained to your vehicle as a result only of fire or theft. You will also be covered for any liability you may have for damage caused by your vehicle to other people’s property, such as if nearby property also catches on fire.
Compulsory Third-Party
Every registered driver in Australia is required to have this type of insurance, which indemnifies any driver who is found legally liable for personal injury to another person in the event of an accident.
There are also other coverage options, such as new car replacement, choice of repairer, and protected no claim bonus. When comparing policies, be sure to take into consideration all the options and extras offered by each to determine the best coverage for you.
The type of insurance you should buy depends on several factors. First, decide which type of coverage you need, taking into consideration the types of insurance mentioned above. From there, shop around to get a variety of car insurance quotes for needs. Knowing the terms and language of car insurance will help you to understand each policy, its coverage and restrictions.
When you are clear on what each policy offers, it’s time to talk dollars and cents. What can you afford? You may think you can’t afford car insurance, but the truth is you can’t afford not to have it. If anything were go to wrong, you could be looking down the barrel of a very costly situation. When you are choosing your coverage, it’s a good idea to have as much coverage as you can comfortably afford. You’ll never regret having enough coverage, even if you never have an accident. The peace of mind you’ll gain from knowing you have the coverage you need is more valuable than you know.