Learn how Car Insurance Works in Australia

If you have a car and drive it, then you must have a certain type of car insurance, such as compulsory third party insurance. However, it can be hard to find the right insurance company considering that there are various out there.

It can be tempting to choose a cheaper option, but if it fails to offer the proper form of coverage, it can cost you a lot of money in case of a car accident. This is why it’s crucial to understand the types of insurance that are available to you and the type of protection they offer. In this article, you will learn how car insurance works in Australia.

Third-party car insurance can cover injuries you cause to other people as well as damages to their property after a car accident. There are varying levels of coverage of third-party insurance.

Remember that it’s illegal for you to drive a car without having at least this insurance. Compulsory third party insurance can cover the individuals who may sustain injuries if your car is involved in a traffic collision.

But this insurance doesn’t cover any of your injuries as a driver or passengers in your car. Likewise, it doesn’t cover damages to your car, other cars, or property. This is the reason why you have to pay the least premium for this insurance. It’s still important to have this insurance because you can avoid paying a lot of liability when there is a car accident.

There is also third-party property insurance that can cover damage to other cars and property after a car accident. This insurance doesn’t cover your vehicle, but you can find some insurers that can cover part of damages to your car that was involved in a traffic collision with an uninsured car.

Lastly, there is third-party fire and theft insurance. Besides the third-party property insurance cover, this insurance can also cover your car from damages caused by a fire or theft.

Comprehensive car insurance

Comprehensive car insurance fully covers damages to your vehicle and other cars. It’s worth noting that this applies when your car and property caused the accident. It also covers injuries sustained by the people involved in the car accident.

Further, comprehensive car insurance can also cover damages due to arson, fire, or certain weather events and theft. But you need to remember that there can sometimes be some exclusions even if you have a fully comprehensive insurance policy. Therefore, you must always check the insurance policy document to avoid experiencing some last-minute surprises.

Whether you have a used car that is still in good condition or a new car, a comprehensive insurance policy can be the best option, though it usually comes with the highest premium. And, comprehensive car insurance happens to be a highly competitive market, so you should always compare insurance products from various insurance companies.

 

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