If you are in Australia and wants to buy insurance cover for your car and are wondering which one to buy, you should understand that car insurance in Australia are of four types:
- Comprehensive Car Insurance
- Compulsory Third Party Insurance
- Third Party Property Only
- Fire & Theft Only
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Comprehensive Insurance
Comprehensive insurance covers repair or replacement of your car in situations including theft, malicious damage, collision and damages caused by weather conditions. It can also cover damage caused to other vehicles by your vehicle.
This type of insurance is normally chosen for cars in good condition. Providers from whom you invite comprehensive car insurance quotes can refuse to provide the coverage if your vehicle is in poor condition and have problems like rust etc.
Compulsory Third Party
Compulsory third party insurance protects you if you get injured while driving your vehicle. It is compulsory and is legalized by each state as well as territory. If you don’t have this insurance and are driving your car, it’s considered to be illegal. You can learn about how to get this insurance by visiting the vehicle registration office in your State.
Third Party Property Only
Third party properly only insurance covers the damage caused to others’ car or property by your car. But it doesn’t cover the damage caused to your car. This type of insurance is bought usually by those whose vehicle is relatively low value, basically to protect themselves from having to pay for the damage to others’ more valuable cars or property by their cars.
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Fire and Theft Only
Fire and theft only is a limited type of insurance cover for repair or replacement of your car in the case if it is damaged by fire or is stolen. It doesn’t cover any damage if you are caught in an accident.
There are some other terms to consider while choosing a car insurance policy.
UME – Uninsured Motorist Extension
This extension is offered by some third party providers of fire and theft insurance and third party property insurance. It is meant to cover damage to your car up to a set amount (normally $3,000 to $5,000) if your car is damaged by an uninsured car, as long as you are not at fault as considered by the insurer and you are able to provide the name and address of the uninsured drivers.
The Excess Payment
The excess payment is the amount that you will have to contribute if you submit a claim. Some insurance policies also offer an age excess where an extra amount is contributed, based on the age of the driver. The excess amount you have to pay is mentioned in your policy documents.
No Claim Bonus
If you haven’t yet claimed against your insurance policy, your provider may consider you as lower risk and so, may lessen your premium amount in recognition. The size of the ‘no claim bonus’ may vary from company to company. If you change your insurance company, the new provider may ask you about your claims record from your earlier provider to get a help to calculate the new amount of premium.
Things to Consider while Buying Insurance
You should consider some important things while buying insurance and ask your provider about them if you are not sure. They are:
- Is my vehicle insured for an Agreed Value or Market Value?
- Agreed Value: This is the value where the insurance provider and the vehicle owner agree on the vehicle’s value at the time of insuring.
- Market Value: This is where the insurance provider determines your vehicle’s value, normally considering its condition at the time of insuring, its age and some other factors.
- Will it affect my no claim bonus if I am at fault in an accident?
- What should I do to lessen my premiums?
- Can I select my own repairer or the company will choose one for me? Are the repairs assured?
- Will I need to pay my excess if I declare another driver responsible for the damage or loss?
Consider Swann extended warranty to get full benefits of car insurance. And look out for an insurance coverage where you will be maximum benefited.
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Also, you need to ensure that you are always driving safely because otherwise if you are acting stupidly, this could lead to being involved in a hit and run, according to the Vehicle Code 20002 – hit and run which is worth reading up on.
