Insurance is a tough topic that people like avoiding despite it being a necessity. If you are planning on purchasing a vehicle or already have a car, you need to think about insurance. The following pointers make it easier for you to choose between the two necessary types of insurance.
In Australia alone, there are different types of insurance, which makes it a tough task to pick the correct one. However, there are two main types of policies for cars; car insurance and ctp insurance. Despite the two being different, they are both a necessity; you need them both.
Compulsory third party insurance, also known as a green slip is a mandatory policy that you purchase before you are eligible to register a car. It protects the third party in an accident when you are at fault such that the driver, cyclist or pedestrian can access medical treatment. In situations where serious injuries are sustained, they are entitled to ongoing care plus support for recovery.
Your green slip also protects you if you are injured in the accident you have caused. It offers drivers protection cover when you are at fault such that you can get the appropriate medical attention. You should also understand that even if you are not at fault during the accident, anyone injured regardless of the blame is eligible for medical treatment and income support for a minimum of six months.
Car insurance is another on-road insurance which comes in three types of policies; third party property damage, third party fire and theft and comprehensive car insurance. As much as car insurance is not as mandatory as compulsory third party cover, if you are at fault in an accident, it makes you responsible for all the parties’ costs for replacements and repairs. Therefore, your best option is to have them both at your disposal to avoid financial constraints in the future.
