Car insurance provides protection against financial loss if you're involved in an accident or your vehicle is stolen or damaged. If you damage someone’s car or your vehicle is damaged due to an accident, the financial costs can be significant, and an insurance policy covers a major part of these costs.
Compulsory third party (CTP) insurance is mandatory but provides less coverage than a comprehensive insurance policy, which gives you the highest coverage level. Choosing the right car insurance depends on how much you can afford as premium. You should consider the type of coverage that best suits your budget and requirements.
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This article is over two years old, last updated on June 2, 2022. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent car insurance articles.
Insurers offer four types of car insurance policies, which are as follows:
CTP insurance offers financial protection if you injure or kill someone in an accident. This insurance is mandatory in all states and territories across Australia.
It covers damages to third-party properties, including their vehicles, if the accident is your fault. However, it doesn’t include any repair or replacement costs for your car.
This insurance covers any damage to your car due to fire or theft and also covers damages to third-party properties. However, it doesn’t include any damages to your vehicle due to an accident or storm.
It is the highest form of cover and protects against all risks covered by third party insurance. Additionally, comprehensive policies cover damage to your vehicle due to fire, theft, or accidents.
Car insurance is important to protect yourself from an unexpected incident. Here are some factors to consider when choosing car insurance:
Understanding how to choose comprehensive car insurance is important to ensure maximum benefits. Here are some ways in which you can reduce the premium amount:
This article was reviewed by Alex Ritchie before it was published as part of RateCity's Fact Check process.
