Your car is perhaps one of your most valued possessions. While on the road, however, it is exposed to so many risks, some of which you have no control over. With a good understanding of car insurance and how it works, you can find the appropriate cover and end the worrying.
As a car owner in Australia, it is essential that you understand the car insurance industry and how it works. This knowledge will not only enable you to choose the ideal coverage for your automobile but also make you a better road user. This article will help you understand some of the basics.
There are four types of car insurance in Australia. These are compulsory third party insurance NSW, comprehensive car cover, third party property car insurance and third party fire and theft covers. The mandatory cover is a necessity in all territories and states, and it covers any person that you may hurt while driving. Comprehensive cover safeguards your car and third party property in case of an accident. It also covers theft and vandalism.
A third party policy covers legal costs and damages to other parties’ property. You cannot use third party insurance to compensate for your personal damages or losses. With a few elective features, third party insurance can also cater for fire or theft incidences.
Unlike most countries, Australia has compulsory third party insurance. Every territory and state has a compulsory motor accident injury scheme that has different regulations and operates differently as well. This insurance covers any person that you may hurt while driving, including cyclists and pedestrians. The system is called a green slip in New South Wales.
You must buy the compulsory cover as you register your vehicle. In some states, the insurance is charged as part of the vehicle registration fees. Driving a vehicle without this coverage is in any part of Australia is illegal. There are also states whose mandatory scheme only covers injured passengers and not the driver that caused the accident.
