While buying a car, you keep in mind some main points. Similarly, for car insurance, don’t just keep the price in mind but other factors too. When it comes to buying insurance then you should keep some other important factors in mind that will give you benefits in the future. There are several policies while buying Car Insurance in Australia. While buying insurance, look at the product that when and where this insurance can work out.
For all this, you should need to follow the instructions that are available on the insurance form. While filling insurance form, make sure that all the policy points are read by you carefully. If you are unable to get any point in insurance form then you should ask your insurer for further detail. There are different types of insurance that you need to be aware of. If you buy a car then you should know about the types of insurance.
- Compulsory third-party/ Mandatory motor vehicle accident personal injury insurance
- Comprehensive
- Third-party property
- Third-party fire and theft
Compulsory Third Party
This type of insurance is required by every state. It defends people if they injure while driving. This type of policy will not cover your financial responsibilities. It is not responsible for any damage to your vehicle. Each state has necessarily this insurance in case of accident injuries. Somewhere it is also known as Compulsory third party insurance (CTP) while somewhere it is known as Green Slip. In Victoria, Australia, it is known as a Transport Accident Charge.
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Car Insurance in Australia – All You Need to Know
This type protects you if you are injured while driving including pedestrians or other road users. Every state has different insurance policies and covers different things. You should know that:
- You must take this type of insurance when you are buying a vehicle in Australia. Somewhere in Australia, it is a part of your registration fee so you don’t need to pay a separate fee. But it is not for all states of Australia.
- Secondly, you should know this insurance form is necessary for all state in Australia.
- Make sure you have this insurance form because it is illegal in Australia to drive a vehicle without this insurance form.
Comprehensive
This type of vehicle is responsible for covering your own vehicle damage condition and it will also be responsible for other people property in case of any harm. It will cover any damage. In case of theft, it will recover the cost. In case of other risks or legal costs, it will help you.
This will give you peace of mind because it recovers the damage cost of your vehicle or it will help you to replace your vehicle. In case of theft, it will offer you the replacement of your car. It can also help people to recovery collision, heavy damage or weather-related damage. In some state, it also offers the recovery of the third person who is injured or has damaged car by your car in an accident.
You should choose this type of insurance if you have a brand new car and needless work. But if your car need repairmen or you are in a state of unrepaired damage then an insurer will not cover this cost. This is a very competitive insurance type.
Third-Party Property
This type of insurance is not responsible for your cost but will recover the cost of damage to other people property or legal costs. It is a type that covers the damage of other vehicles that are damaged by your car in an accident but it is not responsible for your own car. While choosing this type of insurance then make sure you have a low cost vehicle that doesn’t need much amount for its repair. It may possible that your vehicle is striking to some high-cost vehicle that you cannot even afford its small damage. If you collide with an uninsured car then it may be possible that insurance may cover the cost of damage to your vehicle.
Third-Party Fire and Theft
This type is responsible for other people property. It will offer some add-on for your own vehicle. It will cover your vehicle.
How Will You Select a Policy?
If you are unaware of choosing insurance type then ask your insurer for more detail on it. Some simple question you need to ask from your insurer before selecting any type.
- What value will be used for my car insurance, market value or agreed value?
- Will they offer you some additional benefits like a rental vehicle?
- What type of insurance should I take for my car?
- If an accident occurs due to my fault then there will be any recovery from the company or not?
- Should I pay the cost if another person is responsible for the accident?
These all question will somehow clear your mind about which type of insurance you should select for your car.