![]() What is excess in car insurance?Īn excess is an amount of money you pay your insurer towards the cost of your claim. The specific conditions on this type of cover are different from state to state, but no matter where in Australia you are, it is compulsory to hold CTP in order to register your vehicle. What is compulsory third party (CTP) car insurance?Ĭompulsory third party (CTP) car insurance is a type of policy that covers you if you injure or kill someone in a motor vehicle accident. It does not cover damage to your own car, however. It generally also covers your legal costs if they sue you over that damage. Third party property insurance is a policy that covers the cost of repairing damage caused by your vehicle to other people’s property, such as their car. ![]() It generally does not cover damage to your own car caused by a car accident. Third party, fire and theft insurance is a policy that covers damage to the property of others, and some limited cover for your own vehicle if it is damaged or lost because of fire or theft. What is third party, fire and theft insurance? For example, depending on the policy, it may cover the cost of a replacement vehicle like a hire car while yours is being repaired or replaced, or some insurers may let you purchase this as an optional extra. In addition, a comprehensive policy may cover you for some of the other costs associated with an accident or other insured event. Comprehensive cover generally extends to other risks on top of these, such as damage caused to your own car by extreme weather or in an accident. Other forms of cover generally only cover drivers for damage they cause to other people’s property, or damage or loss of their own vehicle in limited circumstances (usually fire and theft). What is comprehensive car insurance?Ĭomprehensive car insurance policies have the highest level of policy coverage available in Australia and covers drivers for a range of risks, whether it’s the cost of damage you have caused to someone else’s vehicle in an accident, or damage or loss of your own vehicle due to an insured event. There are four main types of car insurance available in Australia: compulsory third party (CTP), third party property damage, third party fire and theft, and comprehensive. Types of car insurance available in Australia Hire car costs following a no-fault accident. ![]() Depending on the insurer and policy you choose, comprehensive car insurance could cover: For example, third party cover generally only covers costs if you damage someone else’s property in an accident, whereas comprehensive car insurance provides protection for a more extensive range of risks. The exact risks that are covered will depend on the level of cover that you have. If you decide that comprehensive cover is right for you, you can start your search by comparing car insurance policies with Canstar or viewing our latest Car Insurance Star Ratings Report before getting a quote online.Ĭar insurance covers policyholders for damage caused or costs incurred by unforeseen accidents or events involving the car they insure. For example, would you prefer the high level cover generally offered by a comprehensive policy, or would a lower level of cover be enough? Note that comprehensive car insurance does not cover you for injury or death caused to other people in an accident – that’s where compulsory third party (CTP) insurance comes in.įinding the car insurance policy that’s right for you could depend in part on what you can comfortably afford, so it may be worth considering the type of cover that suits your needs and your budget. However, your choice may affect your premiums. ![]() It may also provide additional types of cover, such as damage to your car from storms or vandalism, depending on the insurer and policy you choose.Ī comprehensive car insurance policy may also let you choose between market value and agreed value for your policy, meaning you could get a say in how much you’ll be paid in the event that your car is stolen or written off, depending on the policy. It provides a level of financial cover for damage to other people’s cars and property in an accident, damage to your own vehicle caused by fire or theft, and accidental damage to your own vehicle, regardless of who caused the damage. If your car is damaged or written off, or you damage someone else’s vehicle in an accident, the cost to you could be significant, and a car insurance policy is designed to cover the majority of that cost.Ĭomprehensive car insurance is the highest level of car insurance coverage in Australia. Car insurance in Australia gives drivers some protection from financial loss if their car is involved in an accident, is stolen, is damaged in a weather event or another risk included on your policy. ![]()
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