Insurance is a tricky business, so Finance You have broken it down into a simple guide for women.
A car is one of the most expensive purchases you will buy and from the second you start driving it you risk damaging it, so insurance is vital. Not to mention that it’s compulsory Australia-wide to have at least third party insurance so it’s important to know the difference between all of the different covers and premiums available to you. There are three main insurance policies, and their differences are listed below.
• Compulsory Third Party Insurance (CTP)
As you probably have already assumed from the title, CTP is compulsory, it’s illegal to drive a car in Australia and not have CTP. It’s the only compulsive form of insurance and in WA, VIC, TAS and SA it’s included in the price of your registration. The other three states (QLD NSW and ACT) have a range of competitively priced companies, which you can choose your CTP cover from. CTP insurance doesn’t cover damage to property or other vehicles; it only covers personal injuries to another party.
• Third party insurance comes in two options
Third party property damage and third party property, fire and theft insurance. The former provides insurance against the loss from someone else’s property, while the property, fire and theft insurance provides a little more peace of mind, adding cover in the event that your car’s stolen or catches fire.
• Comprehensive insurance
The most complex, and of course it’s safest to get this form of insurance, but the reassurance does come at a price. Although it will minimise your financial loss in the case of an accident, comprehensive insurance is the most expensive and can get quite pricey depending on factors such as the amount of excess and road incidents you have had. It covers damage to your vehicle, loss of your vehicle or property, theft and damage to other people’s property such as their vehicle.
Every policy has both its benefits and disadvantages and it will depend on factors, such as the value of your car and your lifestyle, to find out which policy is right for you. The clever people at Financeyou can help you get your head around this confusing decision; they are the experts and can assist you by providing you with very competitive insurance quotes. Also, if you have arranged finance through them, they can factor in the first years insurance premium payments to be included with your fortnightly or monthly finance payments.
What are you waiting for? Get straight onto sorting out your insurance so that you can keep your brand, spanking new car as pretty as the first day that you got her.
