Vehicle insurance is one of the most expensive aspects of owning and maintaining a car. With more than 20 million registered cars in Australia, the law requires drivers to have at least third-party liability insurance (CTP). However, with so many insurance options available, it may be challenging to find the best policy.
Sometimes, a less expensive policy may seem like a good deal. In fact, drivers may lose more if the insurance coverage they purchase is insufficient. When getting the most out of their vehicle insurance, drivers need to be aware of their options and the amount of coverage they can expect from each type of plan.
Here are four primary forms of general motor vehicle insurance in Australia that drivers should be aware of:
Third-Party Property Damage or TPPD: This type of insurance covers the cost of repairing someone else's property if you're in an accident. It doesn't cover damage to your car. And, if the other driver doesn't have insurance, some insurance companies only pay up to a set amount of damage.
Third-Party Fire and Theft Damage or TPFT: As with TPPD, TPFT provides the same level of protection but covers expenses associated with vehicle theft, fire damage, or replacement up to a certain amount.
Compulsory Third-Party or CTP: This insurance, also known as green slip insurance in New South Wales or transport accident charge (TAC) in Victoria, is required by law for all drivers in Australia. Suppose you are responsible for a car accident.
In that case, CTP insurance will cover any third-party injuries or damages, but it will not cover any damages to your vehicle or person or the property of others. You pay for this insurance when you renew your car registration each year.
Comprehensive Insurance: Comprehensive automobile insurance is the most comprehensive coverage you can get, but it also comes at a higher price. If you get into a collision, it will cover damage to your car and other people's vehicles and property. This type of insurance also protects against theft, vandalism, storm damage, and accidental losses.
How do Australian Motorists Save Money on Their Vehicle Insurance Policies?
There is no one definitive way to get the best deal on car insurance in Australia, but there are some methods that may help.
Here are a few tips we discovered that might be useful for your benefit:
Make Sure Your Driving Record Is Spotless: A person's driving record is another important consideration when determining their auto insurance rates. Doing so can help you get better rates for their costs.
Be Cautious With the Extras You Purchase: Roadside help, rental vehicle coverage, and widescreen excess may be purchased as add-on services in specific plans. Additionally, the kind of vehicle a person picks has a significant impact on rates. When setting premiums, an insurance provider often considers the vehicle’s make, model, cost, and age.
Invest in Adequate Insurance Coverage: Cheap does not always equal better, according to most industry experts. We urged drivers always to choose a coverage level that best meets their needs.
Do Your Research Before Making Any Claims: Renewal prices for automobile insurance may be affected by any number of claims. Policyholders have to be careful and clever in claiming their policies to keep their risk rating and future premiums at a safe level.
Anti-theft Devices Should Be Installed: Installing anti-theft systems such as alarms and immobilisers in automobiles is generally rewarded by insurance providers with discounts.
Make Sure You Park in a Safe Place: A vehicle parked on a public roadway is at risk of being hit by a negligent driver, vandalised, or stolen. Insurance providers value cars that are kept in a safe area.
Conclusion
Although there are many ways for drivers to get cheaper car insurance, drivers should ensure that the coverage they buy is comprehensive enough to cover the repairs, legal fees and other expenses associated with a car accident.
To learn more about this, speak with a Gold Coast insurance consultant. Our team at New Wave Insurance is full of Gold Coast insurance specialists who can address your car insurance questions.We can assist you in locating the appropriate insurance for your car or other assets, allowing you to save money on premiums. Contact us to learn more about our services!