Many people think that when they buy a car, their responsibilities come down to filling it up with gas and taking it to an occasional check and registration. However, one of the most important responsibilities a car owner has is to get car insurance.
That being said, it can be quite difficult to understand what types of car insurance there are and which one is best suited to your needs. So, to help you, here is a list of possible options for car insurance.
Compulsory Third Party (CTP) insurance
If you happen to be from the Land Down Under, you’ve probably heard of this option. This insurance is obligatory for all Australian drivers in all states, thus the name Compulsory.
In some states, the CTP is included in the registration fee; in others, it is a separate cost. In New South Wales, the cost is separate, and this insurance is called the Green Slip. It is the lowest-priced of all types of insurances, costing between $400–$600 per year for individuals — but it also offers the least.
Compulsory Third Party insurance can only be used to cover the financial compensation if the motorway accident results in an injury or death of the other person. So, it does not cover any damages to your vehicle or the vehicle of the other accident participants, or any other property damage. Due to all that, it is usually just a starting point when getting insurance.
Third-Party Property insurance
First, of the optional insurances, it is used as an addition to the Compulsory Third Party insurance. Since Compulsory Third Party covers only an injury or death indemnity to the other participant, it falls short of saving you from paying a lot of money for damages.
Third-Party Property insurance offers reimbursement for the other people’s property you damaged with your car —another car, house, boat, caravan, or similar. In Third-Party Property insurance, financial aid in case of legal proceedings is also covered. On the other hand, it does not offer you any coverage for your own vehicle, death, or injury compensation. In short, this insurance mainly protects you from paying for other people’s damage that you caused.
Third-Party Fire and Theft insurance
If you are not keen on paying for the full insurance and spending a lot of money, but want to protect your car in any way possible — Third Party Fire and Theft insurance is for you. Like Third Party Property insurance, it provides only the basic protection in case of an accident. If you are responsible for a car accident, the person whose property was damaged will be reimbursed.
Third-Party Fire and Theft insurance will also compensate for any legal process fees. This insurance does not include the damages to your vehicle. But, unlike Third Party Property insurance, it does include the reimbursement for your vehicle if it gets damaged by fire or stolen.
Comprehensive insurance is the most expensive but also the most complete insurance. This insurance usually covers the damages done to somebody else’s car, damage done to your car by fire, storm, or flood, damage in a motorway accident, accidental damage to your car, legal liability, and theft insurance.
Comprehensive insurance can include many more options for your car that are either included under the name of comprehensive insurance or are added separately. In other words, with this insurance, your car can be protected against almost everything.
Insurance companies offer many different additions to your Comprehensive insurance to protect you from everything that may occur. One of these additional options is for your insurance to cover your accommodation, transport, and towing of your car if it is in a non-drivable condition. If you are searching for an insurance company that offers a lot of options to protect your car, look here to find what you need.
For example, another option is covering the damage that includes the destruction or theft of the contents of your car. An insurance company may also hire you a car in case of theft. Adding more options is, of course, going to cost more. Comprehensive insurance with many additional options can cost you between $1500 and $2500. In short, you can find many different options to make sure that your car and you are protected 100%.
When searching for insurance, there is not a single best option. What insurance you should choose depends on many factors — your place of living, car, driving experience, age, and many more aspects that can contribute to the decision of choosing car insurance.
So, decide if you need basic insurance to protect you from paying injury compensation, other people’s property protection, or protection against everything that may occur. In the end, it’s best to take all factors into consideration and choose the insurance that fits you best.