You can get car insurance after an accident. However, the policy you purchase will only cover you for future accidents, not for the accident you were just involved in.
If you were at fault in a car accident, you will be responsible for all costs associated with repairing your vehicle and you’ll also be liable for all damages to other vehicles involved in the accident.
It is illegal to drive any car in Australia, new or used, without compulsory third party (CTP) insurance.
CTP insurance covers your liability as an at-fault driver for injuries caused to other people in a car accident. It includes paying for the cost of any medical treatments and, in some cases, any compensation owed to them.
In most states, you’re required to have your CTP insurance completed and paid for before you drive the car off the dealership’s lot. The only time you can possibly legally drive an uninsured car is when you’re taking the vehicle to be registered.
The CTP policy won’t pay for treatments to any injuries you may suffer in the accident, nor will it cover repairs of the damage caused to any of the vehicles or property involved. You’ll need additional insurance to cover any damage to your vehicle, property damage you may cause, or injuries you sustain.
It’s possible to take out a car insurance policy that covers you for the cost of repairs for any damage you may cause to third parties when you’re at fault in an accident. This may include damage to other vehicles, houses, shops and public property.
Third party property damage insurance is typically more affordable than comprehensive car insurance, though it offers less cover. For example, one of these policies likely won’t cover damage to your own car, or injuries to your own person.
You could also consider a third-party fire and theft car insurance policy. This should cover damage to third parties if there is an accident, as well as damage or loss of your own car if it is stolen or catches fire. This extra cover may mean paying a higher premium.
A comprehensive car insurance policy offers the most exhaustive coverage and is often the most expensive type of car insurance. It covers injuries and damage to both you and other persons involved in an accident if you are at fault.
Comprehensive car insurance may also come with a range of optional extras available, such as excess-free windscreen repairs, roadside assistance, or access to hire cars after an accident. Just keep in mind that the more a car insurance policy offers, the more it may cost in premiums and/or excess.
Having an accident is likely to affect your future premiums. The exact change in cost may depend on the cause of the accident you had and who was at fault. If you were not at fault, it hopefully shouldn’t affect your premiums. If you were, the cost of your car insurance may rise if you’ll be considered a higher liability by the insurer.
The circumstances of the accident could also affect your ability to buy car insurance. For example, if the accident was caused by your reckless driving, your insurer may cancel your car insurance policy for violating its terms. This may require you to buy a new policy urgently or run the risk of being underinsured. Not reporting a serious at-fault accident to your current or future car insurance provider can also result in a cancellation if the insurer later finds out about the accident.
If you decide to take out car insurance after an accident as a preventative measure for any future accidents, you may want to compare a range of comprehensive policies to find one that’s right for you. When buying your car insurance policy, consider calculating how much you’re likely to pay and asking your insurer about the features of the policy and how much your premium is likely to go up after an accident.
This article was reviewed by Mark Bristow before it was published as part of RateCity's Fact Check process.
