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The Different Types of Car Insurance & What You Need To Know

  • Jul 24, 2019

Are you already thinking about car insurance? Are you concerned about extenuating financial risk before buying your dream car? Do you want to learn transparency in comprehensive car insurance quote? Have you given thought about third party car insurance? Are you looking to compare the market car insurance?

Since car insurance is a legal contract among insured (car owner) and insurer (car insurance companies) to protect against future financial hardship including any theft or accidental loss of insured party. You must be aware of which type of car insurance you should go with. The different types of car insurance in Australia provides coverage for loss against property, medical and liability, e.g. car insurance Victoria and iselect car insurance. Many car insurance companies offer car insurance quotes online. Find out how much is car insurance and which type of car insurance will suit your needs.

Types of Car Insurance Australia

Is your mind stuck thinking about cheap car insurance quotes? Or you are learning what is third party car insurance? And how much is car insurance? We can help you to understand it: there are four types of policies available for car insurance au and their coverages range differently.

  1. Comprehensive Car Insurance – It is considered as best car insurance and most commonly used type in Australia offering complete repair or even replacement of damaged vehicles, i.e., both owner and other individual’s vehicle damaged in accident regardless of the detail ‘who was at fault’.  It is well suited for senior car insurance that could be attained at cheaper quotes. Emergency repairs, costs of malicious damage, theft, fire, weather-damage, collision and transportation costs are readily covered in this category of car insurance.
  2. Third Party Fire & Theft Cover: If your car is stolen or damaged due to catching fire or is dented by third party, this category is for saving your nerves and you go for a safe drive always!
    It is also the car insurance for under 25 that covers the damages caused to the owner’s and the collided car(s). However, it is offered for a loss up to a specified limit of financial cost.
  3. Third Party Property Insurance: If you are a new driver or you often panic from road traffic and trying to drive more confidently, you don’t need to worry now. There is a type of 3rd party car insurance that can give this kind of confidence. Some car insurers in Australia provide you financial coverage over loss of other party vehicle caused by your car. However, it does not provide you full compensation over damage of your own car but a certain amount settled upon the agreement time. It is the cheapest comprehensive car insurance in which having a collision of your low-valued vehicle with more valuable vehicle of damaged party is easily bearable by the insured individual. Next time when you are on your wheels, don’t get troubled by legal costs and claims services against you on road.   
  4. Compulsory Third Party Insurance (CTP): Every Australian citizen with his hands on steering is legally liable against Australia’s insurance law. According to it, every driver must have a registration for compulsory third party insurance (in Australia), also known as Green Slip (in New South Wales) and Transport Accident Charge (in Victoria). This law bounds every vehicle on road to be insured so that you and everyone on road is safe. CTP insurance scheme makes it illegal to left behind you some injured person, damaged car or property on road. Before you apply for it, do learn that it does not cover you from theft or damage to any vehicle (in case of accident). It saves pedestrian, cyclists and other drivers on your vehicle way. For further details, see Insurance legalization for Australian State of Government.  (CAR finance article)
  5. Additional coverage options: There is a list of car insurance companies in Australia that offer attractive benefits besides standard car insurance coverage. The additional features include repairing option, new car replacement and protected No Claim Bonus in their respective policy. 

Still confuse about choice of Car insurance type? Study detailed features and benefits under your desired policy offered by car insurance companies Australia.

FAQs

What is the difference between Agreed Value and Market Value?

When you are signing for terms and conditions of your selected policy of car insurance au, you must be aware of option Market or Agreed value.  

Market value gives you claim against value of car at the time of agreement, considering its parameters like age, model number and vehicle making, etc.

Agreed value holds a financial cost against your car insurance claim equivalent to or fixed by both parties. i.e., insurer (car insuring company) and insured (car owner) until the renewal date of insurance policy.   

Why am I being charge ‘excess’? Is Excess amount applicable to all types of car insurance policies Australia?  

While making agreement of any car insurance, you may encounter with term ‘Excess’ in the payment section. It is basically an amount charged partially in the event of any claim that must be paid by insured. Usually this amount is less than the amount paid by the insurance company. For instance, an accidental event of $1500 (loss) will cause insured entity (owner) to pay $600 while insurer (company or bank) will pay $900. In case of severe accidental events or loss, excess amount becomes payable against final claim of new or replaced vehicle. In other words, excess amount can be categorized as follow:

  1. Basic – Minimum amount to be paid against claimed event and is mentioned usually on the insurance certificate provided to the applicant at the time of granting Insurance.
  2. Voluntary – A charge apart from fixed or basic excess that is needed to be paid in case of an event.
  3. Inexperienced driver – This ‘aged’ excess amount is applicable for inexperienced driver or under 25 years driver and is usually higher amount than basic or voluntary. Companies offering cheap car insurance for under 25 do nominate another driver and a principal driver.
  • Does ‘Excess’ amount applicable to my old car insurance quotes as well?

Usually it worth to pay ‘excess’ amount on premium package of your car insurance but if your claimed car is, for instance, old model with low market value, then you should consider your choice of obtaining car insurance au. First compare the market car insurance Australia and if you find excess amount to be more than your low-cost vehicle then decision should be: Save your money!

  • In case of accident, does paying my ‘excess’ amount really works?

In such cases, applicant or insured individual must consider car insurance cover note and compare comprehensive car insurance prices. The difference between claim amount of your best car insurance cost Australia and your basic excess should be known to you. It is advisable to look at the impact of your ‘No Claim Bonus entitlement’ and premiums in future before you go insuring your car. Using a Car insurance calculator is usually helpful in differing best and cheapest car insurance Australia among many car insurance brokers.

  • What else should I know to compare fully comprehensive car insurance Australia?

Either you are under 25 or over 50 car insurance should be attained to protect you, your family and others on road. It is often complicate to compare car insurance quotes to find best comprehensive car insurance but this can be done by a simple homework: define your car insurance coverage features, compare the quotes available online using car insurance calculator, learn additional benefits offered, record your driving history and car mileage, evaluate your affordability, review car insurance credentials and policy. This is how you can minimize your premium cost.

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