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Choosing the right car insurance policy

Choosing the right car insurance policy

With thousands of accidents occurring on Australia’s roads each year, choosing the right car insurance for you is well worth the time and investment it takes. But with so many policies available on the market, all offering different cover and extras, how do you know which is the right one for you?

Here are some things to consider when it comes to buying your next car insurance policy so it can be effective and affordable.

First up, it's important to understand the different levels of policy cover available to you.

1. CTP/Green Slip

All drivers in Australia are required by law to have Compulsory Third Party Insurance, which is often referred to as CTP, or Green Slip in NSW. CTP covers you for the costs associated with injury and fatality you cause to someone else in an accident where you were at fault.

Whatever other car insurance you choose, you also must have CTP or Green Slip, in order to legally register your vehicle.

2. Third Party Property Damage

Third Party Property Damage is a basic level of car insurance that provides you with cover against damage that you cause to someone else’s property like their car, fence or garage.

The costs of repairing this type of damage could be substantial, so third party property damage cover helps to provide some additional peace of mind.

You may consider this policy if:

  • You drive an old car that isn’t worth much
  • You want to be covered financially for any damage that you may cause to someone else’s property or vehicle

3. Third Party Fire and Theft

If you're looking for a higher level of cover then you may decide to opt for Third Party Fire and Theft. This covers you against damage you cause to someone else’s property plus damage to your car if it's stolen or burnt out.

You may consider this policy if:

  • You're a budget conscious driver
  • You only want limited cover in the event your car is damaged by fire or stolen
  • You want cover if you cause damage to someone else’s property or vehicle

4. Comprehensive Car Insurance

If you want to make sure that you’re covered for various types of loss and damage, then you may want to look for a Comprehensive Car Insurance Policy.

This type of policy will cover you for many different types of damage to your car - such as, if your car was in an accident or vandals set it on fire, regardless of who was at fault.

It generally also covers you for the legal liability you may face if you were responsible for an accident involving your car. This means cover for damage to other people’s property.

You may consider this policy if:

  • You recently bought a brand new car, or you own a car that you value
  • You want an extensive and comprehensive level of cover

Do you need additional coverage?

When you’re shopping around for your car insurance don’t forget to investigate the additional features and benefits offered by some insurers.

While the standard level of cover will generally be quite similar, some insurers can offer extra benefits such as providing you with a hire car if your vehicle undergoes repair after an accident or repair to your windscreen if it gets chipped.

An effective car insurance policy comparison means thinking about your specific needs and how a car insurance policy can address them. It’s not a simple process, but the payoff can help you save time, money and peace of mind in the long run.

Things you should know: Speak to your Car and CTP Insurance providers about any policy limits and exclusions that may apply. NRMA Car Insurance issued by Insurance Australia Limited ABN 11 000 016 722 AFSL 227681 trading as NRMA Insurance. This is general advice only, so to see if a product is right for you, always consider your own circumstances and the Product Disclosure Statement available from NRMA Insurance.

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