Car Insurance InsiderAs of January 2016, there are more than 18.4 million registered motor vehicles in Australia. When it comes to choosing an insurance provider, all drivers have a different list of criteria. When surveyed about the most important factors in a provider, there were three at the top of the list; 33% of drivers valued the level of coverage, 35% valued customer service and 36% valued trustworthiness. However, the top factor was the value for the money at 54%.
If you are on the hunt for the cheap car insurance, then it’s crucial that you know what options are available. Contrary to what many assume, car insurance is not a ‘one size fits all deal’. It requires research in order to choose the best plan for you. Let’s discuss a few types of car insurance so that you can pinpoint the type of coverage you need. But first, let’s consider a few things you should consider when purchasing car insurance.
Factors To Consider When Choosing Car Insurance In Australia
Features and benefits
It’s important to note that not every policy will be the same. Some are very basic while other offer a significant amount of benefits and features. For example, there are some policies that pay for a rental car if your vehicle is ever stolen. Some even offer accommodation if the vehicle is stolen while you’re on holiday. So it’s very important that you take the time to consider all of the extras that come along with an insurance policy. Even if when you’re looking for cheap car insurance you should never base your decision solely on the price.
Customisation
There is a lot of competition in the car insurance market. And this means that companies need to find a way to stand out among the other. One way they are doing this is by giving customers the choice of what they would like to be included in their policy. Not only does this give you more freedom, but it also ensures that you will be able to keep costs down. Even if it’s as simple as nominating certain drivers, you may be able to lower your rates.
Ability to Choose Repairer
If you have ever been involved in an accident, then you know that repair can be quite costly. That’s why it’s so important that you choose your repair shop wisely. By comparison shopping, you can ensure that you’re getting the best service possible at the lowest cost. While some insurance companies allow you to choose the repairer, others do not. So before signing up for a certain plan, make sure that in the event of an accident your insurer will sign off on repairs made by shops of your choice.
Types Of Australian Car Insurance
Comprehensive
When it comes to car insurance, there is no plan that offers greater peace of mind than comprehensive. It covers both the repair or replacement of a vehicle in cases of collision, fire, theft, weather-related damage and even damage that has been done maliciously–whether it’s your car or the other person’s vehicle. However, this options is best for those whose cars are in good condition; insurersare not likely to offer comprehensive coverage to you if your vehicle has rust or unrepaired damage.
Compulsory Third Party (CTP)
In many Australian states, Compulsory Third Party Insurance (CTP) is mandatory.This type of insurance protects you in cases where other people are injured. This may be the other driver, their passengers or even pedestrians. Though each jurisdiction has its own rules, it’s important to remember that in most cases it must be purchased at the time that you register your vehicle. Also, this type of insurance will not cover any damage to vehicles nor does it cover any legal liability other than personal injury.
Third Party Property
Third Party Property insurance covers the damaged that you caused to property or other vehicles. However, it does not cover for your personal vehicle. This coverage us usually best for individuals who have a low-value vehicle so that repair costs will not be so high. There are a few companies who will be willing to cover a limited amount of damage done to your car as well, however, the other driver must be uninsured.
Third Party Fire and Theft
Third party protection is identical to third party property. However, this type of insurance also covers both theft and fire. There is only so much the company will cover for your vehicle in this case.
Shopping for cheap car insurance does not have to be difficult. It’s simply a matter of know what you want as well as what the company is willing to provide. It’s also important that you have a good grasp on what each type of car insurance plan has to offer.
