Car Insurance Tips and Details
There are 3 Main Types of Car Insurance
1/ Green Slip 2/ Third-party 3/ Comprehensive
1/ Green Slip
- This is also known as a CTP Green Slip and is COMPULSORY.
- It covers you for Injury to other persons caused by you in your vehicle.
- It does not cover any damage to vehicles or property in a road traffic accident.
- You will need to purchase this before your vehicle can be registered. However, it pays to check the market each year when its time to renew as prices vary enormously.
- Because you got a cheap deal last year does not mean your current Insurer will be cheapest this year.
- In my experience last years CTP green slip provider is often the most expensive at renewal Time.
- It pays to thoroughly check the market each time. You purchase this online and the details are electronically sent to the RTA as part of your registration renewal process.
- Your vehicle cannot be registered without a current valid green slip.
- Less chance of an accident if you have clear vision Wipertech windscreen wipers equal clear vision
2/ Third-party vehicle Insurance
A Sydney Car Owner’s Guide to the Benefits and Limitations of Third Party Car Insurance
Fellow car enthusiasts or motorists… purchasing a car is not as simple as financing or paying (if you’re in my position) and driving off on a road trip to Botany Bay. Whether you purchase a brand new or used car, there are steps that you need to take before you can have your car registered and take it out for a spin around Kings Cross.
Having car insurance is one of the first steps. Your insurance policy must include some coverage to protect you financially against major risk. Because let’s face it… Who really saves up for an accident? It is… an accident after all! Now there are several types of car insurance, but the most basic one that you need to purchase is Third-party car insurance.
What is Third-Party Car Insurance?
Third-party car insurance will protect the insured individual (that is, you) against certain liabilities. It covers the damage caused to another person’s vehicle or property as a result of an accident for which you, the insured party is liable. Take note that the coverage does not actually extend to damage to your car. It is the most minimal level of care and hence, is the most affordable.
What are the benefits of having Third-Party car insurance?
Having third-party car insurance provides legal cover and financial assistance to the insured person’s, or your legal liability. In case of death or injury to any third party, and/or any damage or loss to the third person’s property. The legal and financial burden will be taken care of in such a scenario. You don’t have to worry about having your assets seized or stripped from you. After all, you will have enough problems to consider including your own stress and potential injuries. A third party insurance policy will help give you peace of mind when dealing with such a traumatic situation.
Getting a third-party insurance quote is easy and purchasing the quote or renewing third party insurance is simple. This is because getting it does not require much documentation. For convenience, you can also select or renew the third-party car insurance online and from a variety of different insurers.
What are the limitations of Third-Party car insurance?
Although third-party car insurance policy provides a number of benefits, there are limitations. This policy does not provide financial assistance for damages or theft to the insured party’s vehicle. During an unforeseen event, this also does not cover any medical or legal costs for your own injuries nor will cover any damage that needs to be repaired to the insured vehicle.
Basically, this policy only covers any financial liabilities to the third-person and/or their car or property, but not your own car. For this reason, third-party insurance is more affordable than a “comprehensive” cover.
Accidents can happen anytime and this is why it is so important to for you as a driver to invest to such policy. It is undeniable that the legal, financial and psychological peace of mind offered by third-party car insurance policy justifies the small annual outlay you may make across the entire year. This insurance will protect you against any possible liabilities to the third party that you might get into during any unforeseen circumstances.
In conclusion, third-party insurance is probably best if you have older vehicles since this can at least take care of the damages or losses to the third party. With an older vehicle, it shouldn’t cost too much to repair or in the worst-case scenario, write off. Under such an event, any repairs that need to be done to your vehicle will be with your own money.
3/ Comprehensive Motor Insurance
A Sydney Car Owner’s Guide to Comprehensive Car Insurance: The Pros, The Cons and How You Can Significantly Reduce Your Premium!
Before you even turn on the ignition of your brand, new (or second hand) car, you need insurance. It gives you financial, legal and psychological peace of mind. Do you know the saying, money can’t buy happiness? It can definitely save you from financial ruin and misery.
At the higher end of car insurance is comprehensive car insurance. Knowing that during unwanted collisions or accidents can happen, with comprehensive car insurance, you don’t have to worry about how and where to get financial assistance to pay for your medical bills or car repair. You also need not fret on how you’ll pay for the damages or injuries to other people.
There are several types of car insurance policies, and it is extremely important that you become more informed about the options available. Choosing the best ones that fit your needs and, of course, your budget. When choosing a policy, It is best to weigh up the factors on the coverage you want. If you drive a 20-year-old rustic car bound for the scrapyard (I drove one as my very first car!) You probably won’t prioritise comprehensive car insurance… If you drove a 2019 Mercedes AMG however…
Long and short of it, if you want car insurance to protect yourself from any nasty surprise, you might want to consider a comprehensive policy.
What Is Comprehensive Car Insurance?
Comprehensive car insurance covers more than other insurance policies and has the highest level of coverage you can purchase. In addition to the protection that you get from having third-party car insurance, comprehensive car policy covers damage to your won vehicle. Say if you accidentally hit a fence… or a wall…
It happens. This is why Car insurance tips are very important.
Most companies provide basic coverage for comprehensive insurance resulting in loss or damages to the insured vehicle. These include accidental collision, fire and lightning, explosion, theft, and malicious acts done by third parties.
However, comprehensive car insurance coverage varies from the insurance company you are getting it from. On top of the basic coverage, you will have to choose your own coverage benefits, therefore allowing you to have additional protection that suits your needs. Some of these additional options are windscreen and window glass cover, car rentals, and “new for old replacement.”
What are the Pros and Cons of Comprehensive car insurance?
Comprehensive car insurance is the highest-level policy you can get which will undoubtedly give you peace of mind while driving but it is also the most expensive insurance available.
Although this is the maximum coverage that you can purchase, like any other insurance, it also has its limitations. Comprehensive car insurance won’t cover the damages if someone else is driving your car during unexpected circumstances. It also won’t cover any personal damage if the person driving your car is under the influence of drugs or alcohol.
A perceived disadvantage of comprehensive insurance is its price. It is more costly than third party insurance. Let’s face it, if you drive in a neighbourhood with little risk of damage from vandals or thieves or non-traffic related problems, then you may not need comprehensive insurance. But if you drive in a neighbourhood with a high risk, then the extra premium could be worthwhile. At the end of the day, you should make a decision based on your own environment, driving record and financial position in determining the level of coverage to purchase.
How Can You Reduce Your Premium?
OK, Comprehensive Car Insurance is the most expensive cover policy that you can acquire upfront. Essentially you are asking the insurance firms to place a big risk that you will not cause an accident. Or collision and a complete stranger will not cause an accident or collision that will affect you. Naturally, these covers command a premium. That said, there are several ways you can reduce the monthly or annual payment plan for your premium. These are:
1. Increase your excess: Generally speaking, the lower the excess, the higher the annual or monthly premium. On the other hand, the higher the excess, the lower the premium. The excess is the amount of a covered loss you agree to pay before the benefits of your policy are applied.
Consider two scenarios where damages caused are $10,000 and $900. If you chose an excess cover of $1,500, it would mean that if you are at fault, and cause $10,000 worth of damage, you would be liable for the first $1,500 of the charges. The balance is paid by your insurer. In the other scenario, you would be liable for the entire cost and the insurer would not pay a cent. So if you are able to carry a higher excess, your premiums will reflect a lower risk for the insurer and commend a lower cost.
2. Online Purchase: The second method to reduce your premium is to shop online. Some companies offer discounts when you purchase the policy online. Instead of paying commissions, office rentals, wages, insurance companies are able to pass the savings directly to you.
3. If you maintain a good driving record: You may be offered a safe driver discount for maintaining your good driving habits. Insurance and premium charged are a measure of risks. If you carry a commendable and clean driving record, you are considered less of a risk and unlikely to be involved in a collision.
4. Speak with your agent: It pays to ask your agent directly for other potential cost savings that might be available for your circumstances.
In conclusion, the comprehensive insurance policy has a wider range of coverage compared to other policies but it is more costly than the third party insurance. Therefore, it is extremely important to consider and weigh up all certain factors before purchasing third party or comprehensive. Choose what is best for your situation as you never know when you will need it.
Check out our blog. https://sydney-car-owner.com/roadside-assistance-is-becoming-cheaper/