First time car buyer? It can be tough to know what level of insurance you really need, especially when you have a tight budget. We'll decipher all the terms so you can make an informed decision.
Firstly, insurance is financial protection against physical damage of bodily injure resulting from traffic collisions and other incidents.
What is Comprehensive?
Comprehensive insurance provides total coverage and can significantly reduce your out-of-pocket expenses.
It covers
- Cost of repairs or replacement of your car due to accidents, theft, fire or vandalism
- Cost of repairs to a third party’s vehicle or property due to a collision where you’re at fault
- Extras such as windshield cover, roadside assistance, car hire etc (check your policy for specifics)
What is Compulsory Third Party?
CTP, also referred to as Green Slip insurance in New South Wales, is mandatory to register any vehicle in Australia.
It covers
- Medical bills and personal injury liability if you (the driver of your car) cause an accident. It covers all injuries including your injuries and those to passengers, other drivers and people on the road.
It doesn’t cover
- Damage to your car or another person’s property in the event of an accident.
What is Third Party Property?
Third Party Property insurance is optional and provides limited coverage.
It covers
- Damage you cause to another person’s property or vehicle
It doesn’t cover
- Your car against theft, fire or damage
05 Mar