These simple facts about Australia car insurance will help you make the best decision for your auto insurance needs.
What types of coverage are available and what does the law require? These are just some of the questions that you need answered.
When I first moved to Australia more than 15 years ago, I was surprised to find that the procedure for insuring your vehicle was a bit different than what I was used to in the US.
There are differences in how insurance is determined and even how
vehicles are registered. One thing that remains the same is the fact
that even in Australia, car insurance is required!
The law requires a minimum of coverage in Australia. In addition to the legal limit, there are other types of car insurance in Australia you can purchase to protect yourself and your vehicle.
Compulsory Third Party Insurance, also referred to as CTP,
is the bare minimum amount of insurance that is required. If you are
from New South Wales (NSW) this is called "Greenslip." If you are in
the Australian Capital Territory (ACT) they call it "Third Party
Insurance" or TPI.
CTP is insurance that covers personal injury claims by someone other than the owner/driver of the vehicle at fault in an accident.
CTP does not cover any property damage, nor does it cover your own injuries if you are legally liable for the damages.
Compulsory Third Party Insurance is included in your Vehicle Registration Expense. You are unable to register your car unless this insurance is paid.
You will notice that you can save $15-$30 by paying your Registration and CTP annually rather than every 6 months.
You can save an additional $45 or more by paying on time. Those late fees really add up!
It can get very expensive if you have an accident and it is determined
that you are at fault. You will be legally liable to cover the damages
to other people's property. That is where the Australia car insurance
called Third Party Property Damage Cover comes in.
As much as I dislike "wasting" money on insurance, this coverage is one that I do recommend. Unless you have a dreadful driving record history, this insurance is relatively inexpensive. I get coverage for a year for less than $100. It is only about $8 per month when all is said and done.
I consider myself a good driver, but there are always unexpected events - that's why they call them "accidents." I would never be able to afford the cost of replacing someone's expensive new car if I "accidentally" caused a collision. I consider this form of Australia car insurance a wise use of $8 each month.
You can also choose to purchase Fire, Theft, and Third Party Property
Damage. In Queensland this is called Extra Cover. This will provide
you with the Third Party Property Damage Cover mentioned above as well
as protection for your own car in the event of fire and theft. Pretty
obvious by the name, isn't it? :-)
If you have a newer automobile, this may be worth considering for you. It is usually the nicer cars that are stolen. :)
Speaking of newer vehicles... ...if your auto is fairly new or in
really good condition, you may need to start thinking about covering
your own damages in case of an accident. Comprehensive Cover includes
Third Party Property Damage and Extra Cover, of course. But, it also
pays to have your auto repaired or replaced if you smash it up - or
someone else smashes it for you!
This is going to be your most expensive Australia car insurance option. If you own a new car, this is an almost necessary expense. If your car is financed through a loan or lease, you are almost certain to be required to carry Comprehensive Cover. Keep this in mind.
There are a few things you should know about reducing the amount of your premiums when purchasing Australian car insurance.
Your CTP will be pretty much the same with almost all companies, but
you can find substantial savings by comparison shopping for your
optional coverage. It takes a small amount of time, but it is worth the
effort in dollars saved.
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