If your on the verge of buying your first car and are a little confused when it comes to car insurance, you’re not alone. Auto insurance can be confusing and intimidating at first sight. There are a lot of jargons thrown around and you’re scared that you’ll make the wrong choice and end up spending way too much money than necessary. So, if you are looking for a quick guide on the types of car insurance, read on to find out everything you need to know about them.
Compulsory third-party car insurance
Comprehensive car insurance
Third party property, fire and theft car insurance
Compulsory Third-Party Car Insurance
Compulsory third-party car insurance also called CTP is mandatory coverage in Australia and covered with the registration of the vehicle. The coverage protects the drivers responsible for an auto accident when death or injury occurs to other people in the accident. The coverage includes passengers of all vehicles involved in the accident and other people including cyclists and pedestrians.
Comprehensive Car Insurance
Comprehensive car insurance covers the vehicle for damage as well as loss of the vehicle. For instance, if the vehicle is stolen the vehicle would be covered. The coverage also provides protection should the policyholder collide with another vehicle or damage the property of a property owner, such as a mailbox.
Third Party Property, Fire, And Theft Insurance
Third party property, fire, and theft insurance cover the insurance above for another driver’s vehicle, or the property of another with the additional coverage for the policy holder’s vehicle should the vehicle catch fire or be stolen. The insurance does not provide cover damage to the vehicle should it be involved in an accident deemed to be the policy owner’s fault.
Insurance is necessary and mandated by law. The minimum insurance coverage requirements are considered minimal coverage. Comparing the different coverages allows car owners to ensure they are aware of and purchase the proper coverage and protection in the event of an accident, injury, damage, vehicle loss, etc. Not all policies are equal, just as not all insurance providers are equal. Research providers and then shop and compare coverage and policies.
When shopping car insurance online, do your research. Don’t assume that a provider is an outstanding provider. Shop and compare quotes; and, do not purchase a policy until you speak to an agent. This will remove all doubt that you haven’t purchased the coverage you assume you may online.
Melbourne Cars Removal is a cash car buyer that purchases vehicles of all makes and conditions. Car owners that would like to find out what we will offer for their cars & trucks can give us a call at the number below or visit our homepage for an online valuation.
Call us at 0416 686 900.
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