The different types of car insurance on offer

It can be difficult to choose the right car insurance policy, especially if you have never looked at car insurance before. Here, we’ve listed some of the main points about the different types of car insurance available from most insurance companies.

In general, the more cover a company offers the most expensive that cover will be. There is no point in buying insurance that covers more than you need, so keep that in mind when reading the below insurance options.

There are four main types of insurance on offer. These are: comprehensive car insurance; third-party property insurance and third-party property damage insurance as well as theft and fire cover.

Compulsory third party insurance (CTP)
When you register your car, you pay for compulsory third party insurance (CTP). This is compulsory across Australia. It covers injury and death caused by car accidents.

Comprehensive car insurance

Comprehensive car insurance covers any damage to your car or your personal property. In the event of an accident if you have comprehensive insurance your car and the other drivers car will have all repairs paid for.

Third-party property insurance

Third-party property insurance covers all damages to the other persons property should you have an accident. It will also cover any legal costs you may have but it will not cover any repairs that may be needed to your own vehicle.
Third-party fire and theft insurance
The third type of insurance, third-party with fire and theft insurance offers the same level of coverage as third-party insurance, but will also up to $10,000 extra cover for damage to your car by either fire or theft.

Of course companies will vary slightly in what they offer and the deals they have for the different levels of insurance may differ from insurer to insurer.

When deciding on what type of insurance you want and from what business, it’s a good idea to gather a number of car insurance quotes from a few companies you are thinking about going with and compare the levels of cover on offer and the price.

It’s a good idea to take your time and really consider your options before choosing one over the other. Do any of your friends and family have insurance with a company you are thinking about insuring your car with? If so talk to them and find out if they are satisfied with the coverage they are provided with and if they are happy with that level of cover.

Choosing the right type of car insurance doesn’t have to be a difficult task. You just need to know the type of coverage you want, and a rough budget for how much you are willing to spend. I hope our explanation of the different types of insurance now available on the market has given you some ideas on what could be the best car insurance to suit your needs.