Types of Insurance That Every Australian Citizen Needs
It is important to have protection from just about anything that life throws at you. Perhaps most important of all, and in some cases legally required, is auto insurance. Beyond just the bare minimum, Australian drivers have a variety of options available to them to make sure that their ride, and others, are safe out on the road.
We’ll take a look at some of those options, as well as how your car insurance coverage could end up helping you save on other expenses.
Green Slip Insurance
Across Australia, there is one required form of car insurance coverage. This is known as Compulsory Third-Party insurance (CTP), also known as green slip insurance. This form of insurance is mandated in all states and is included in your car’s registration cost, except in New South Wales. In NSW, drivers are allowed to choose which car insurance company they would like to have this auto insurance coverage through.
Green slip insurance is designed to provide compensation for any third parties who are injured or killed if they are involved in an accident with your vehicle. This also acts as financial liability coverage for pedestrians, cyclists, and other passengers that may have been injured in the wreck.
It’s important to remember that CTP doesn’t cover damage to your automobile, or to any other vehicles or property involved. Nor does it cover damage to your property or damage caused by your car under various circumstances. You’ll need to get additional auto insurance coverage to protect you there.
Comprehensive Car Insurance
When seeking a free car insurance quote, it is important to look into the costs of additional coverage beyond your standard CTP policy. Comprehensive insurance can cover repairs to your vehicle and for other cars that are involved in an accident with you, regardless of who is at fault. This additional coverage will also cover you in the event of theft, as well as if your vehicle is damaged by fire, flood, or vandalism.
If you’re involved in a collision, comprehensive car insurance can also help to cover you in the event of accidental damage. This will cover your car if you scratch the door, or hit your mailbox as you back out of the driveway. Comprehensive insurance also provides protection in the event of weather damage, covering any physical issues brought on by fire, flood, storms, hail, or other elements.
Third-Party Coverage and Discounts
Third-party auto insurance coverage comes in two forms: property and fire & theft. Third-party property coverage covers the cost of damage to other people’s property but generally does not cover any damage to your own car. Fire and theft auto insurance is the next level up, providing protection for your vehicle in the event it is stolen or catches fire. With certain extras, you may be covered for a rental car while yours is with the mechanic, or have your car towed away from the scene of the accident.
As a motorist, it is important to take a close look at the terms and conditions of an insurance policy to make sure that you are paying for the protections that you feel you need and are not missing out on others. Consider the average rate for insurance coverage in your state, as well as how much your car insurance premium will impact your wallet each month.
Keep in mind, some insurance companies may offer other forms of protection beyond auto insurance and may provide discounts for bundling with home insurance or other liability coverage. Other insurers offer a lower premium to good drivers with a history of little to no claims, and loyalty discounts for long-term relationships. Be sure to lay out all the options before signing on board.