There are many different kinds of car insurance in Australia. The trick is to wade through the options to find the kind of insurance that will suit you needs best. This article will help you do just that.
Compulsory Third Party or Green-Slip Insurance
Compulsory third party or "CTP" insurance is the most basic car insurance in Australia. In some states it is required by law that every car must have at least this kind of insurance, as it provides essential coverage against claims for repayment should you injure or take the life of someone else in a car accident.
If your car is older and perhaps not of much replacement value you may be tempted to consider stopping at CTP insurance. However, this is not always a good idea. This kind of car insurance, in Australia, does not cover you for damages inflicted on other people’s property. Take for example if you are unfortunate enough to rear-end someone, and that someone just happens to be driving a BMW. Your CTP will cover any injuries the other driver suffers, but you will be on the hook for any damages to the car – and BMWs are not cheap to repair.
Third Party Property Insurance
The next most inclusive form of car insurance in Australia is Third-Party Property , Fire, and Theft Insurance. In addition to the coverage offered by CTP, this kind of insurance also covers you if your car is damaged as a result of fire, or theft.
Comprehensive Car Insurance
This is by far the most inclusive car insurance available in Australia. Because of that, it is also the most expensive, but it includes coverage for crash repairs or replacement of your car even if the accident is your fault.
How to Save Money on Car Insurance in Australia
Do Your Research
If you take the time to shop around for the best rate for the best coverage, you can save hundreds of dollars on car insurance in Australia. To be sure you have done a thorough investigation, be sure to get a minimum of three car insurance quotes – the more, the better. You may be surprised by the variance in premium prices!
Opt for More Excess!
No, this is not license to go to the all-you-can-eat buffet and indulge in countless cocktails while you ponder your car insurance options. Opting for excess in this case is a way to lower your monthly premium payments by choosing to be responsible for paying a larger chunk of the repairs or damages out of your own pocket should accidents happen. The more you are willing to pay should problems arise, the less you will be required to pay to be protected.
Twenty-five or older, please!
If you opt to restrict the use of your vehicle to drivers who are over the age of twenty-five, you should be eligible for a discount on your car insurance in Australia.
If you don’t ask, you won’t get
A final word of advice when it comes to car insurance in Australia: If you don’t ask for discounts, chances are you won’t get one. Ask your potential insurance company if they will offer you a discount if your car is equipped with a high-quality alarm system or anti-theft device. It doesn’t hurt to ask - and if you don’t, you’ll never know how much money you would have saved,
DISCLAIMER: The information contained in this article is the opinion of the Author and should not be taken as advice. The Author is NOT a registered Insurance Broker or Insurance Advisor and is not associated with an Insurance Company. The information in this article has not been verified and may be inaccurate or incorrect. Please contact a registered Insurance Broker or Advisor should you require any Insurance advice.