How to choose the right car insurance

When choosing the right car insurance, it’s important to take the time to understand what is (and isn’t) covered by different policies. But with so many policies available on the market, all offering different cover and extras at different prices, how do you know which is the right one for you?

Firstly, it's important to understand the levels of cover and assess your needs to find which one is the best fit for your vehicle.

1. CTP/Green Slip

All drivers in Australia (NSW, QLD, VIC, WA, SA, NT, ACT, TAS) are required by law to have Compulsory Third Party Insurance – which is otherwise referred to as CTP or a Green Slip (depending on where you live). This cover acts as a type of liability insurance if you have an accident and cause injury to someone while driving. It’s also mandatory to have for your vehicle to be legally roadworthy. Whatever other car insurance you choose, you must have CTP or Green Slip to legally register your vehicle.

PS - in some states, compulsory third party insurance is included in your car rego.

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 you accidentally cause to someone else’s property or vehicle

3. Third Party Fire and Theft

If you're looking for a higher level of cover, Third Party Fire and Theft is an option you might want to consider. 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

Please be aware that third party fire and theft is not the same as compulsory third party insurance or comprehensive car insurance.

4. Comprehensive Car Insurance

Get covered for various types of loss and damage with a Comprehensive Car Insurance Policy. This policy type will cover you for a range of damage caused to your car – like if your car is involved in an accident or vandals set it on fire, regardless of who was at fault. It also covers you for the legal liability you may face if you were responsible for an accident, such as cover for damage you caused 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

Where to register your vehicle

To be considered legally roadworthy, your car must be registered. Below is a helpful list of where you can register your vehicle in each Australian state.

NSW: Service NSW

VIC: VicRoads

QLD: Transport and Motoring

WA: Department of Transport

SA: Driving and Transport

NT: Motor Vehicle Registry (MVR)

TAS: Transport Services

When you’re shopping around for car insurance don’t forget to keep an eye out for any additional features and benefits offered by some insurers. It’s not a simple process but investing the effort can help you save money and provide you with peace of mind.