What type of insurance do I need for my car?
While purchasing a car, individuals go through a lot of struggle to make the right choice. People consider it essential to have a clean revs check for the vehicle that they are considering to purchase. In addition to buying the right car, the buyers also need to make the right choice for their car insurance. However, choosing among the different types of insurance can be a confusing process.
In order to ensure that the insurance that you are about to own provides you with the best policy; you first need to be familiar with the different types of insurance options first. In this sphere, buying insurance is also as puzzling as buying the best car. Here are the types of insurance policy options that you can explore for your future reference.
Photo by Michael Jin on Unsplash
Compulsory Third Party Insurance
Having a Compulsory Third Party (CTP) Insurance is binding as per the law for those who own a car in Australia. The CTP Green Slip policy is mandatory part of the purchase while registering your car in Australia. The CTP Green Slip covered a lot of things for your car if there is any inconvenience faced. It also compensates people who have faced injury or death after being involved in an accident with your vehicle. This is quite beneficial for the vehicle owner as the CTP green slips will help in covering the loss. The owner of the car will not be liable to cover any financial loss as per the lawsuits due to this insurance policy.
It is also important to note what the CTP insurance does not cover for the owner. This insurance does not cover any damage caused to the vehicle itself. This means that the owner will remain liable for the financial damages to the vehicle. For that reason, it is highly critical to explore other car insurance options as well.
ADDITIONAL CAR INSURANCE OPTIONS
Comprehensive Insurance
This is one of the best insurance options that the car owner can explore. This type of insurance can cover any type of damage caused to the vehicle as well as the damage caused by the vehicle to someone else’s property. It also covers the loss if the vehicle has been stolen.
The legal costs associated with the vehicle can also be saved if the car owner holds this insurance. Other things covered by the comprehensive car insurance are any loss faced in terms of collision, fire, weather damage, repair, etc. To be concise, comprehensive car insurance is a life saver for those who have less car driving experience. It can provide the rider of the car with peace of mind.
Third Party Insurance
Third party insurance is a distinct and unique type of car insurance that covers the damage and loss faced by the other people due to the vehicle. It does not cover any damage caused to your own vehicle. Rather, it involves any damage done to the property of another party.
All the legal and financial costs involved with the third party accidents will be taken in account by the insurance policy under this head. It is also important to note that this type of insurance is more beneficial for those who own a low valued vehicle. In this case, the owner will be safe in case of the damage done which is of more financial value compared with the vehicle.
Third Party, Fire and Theft Insurance
With this type of insurance, the car owner can simply add on some additional features to cover the costs associated with the vehicle. It is one of the most affordable options available to add some extra protection for the vehicle. The name of this insurance suggests the different types of damages that it can cover. This can range from the damage caused to a third party, to the loss caused by fire and theft.
This is also a reasonable option for those who cannot afford comprehensive car insurance. This policy is more suitable for those who want to explore the mid range options for their car insurance. This means that the insurance will not cover all the aspects, but some major type of losses that are important for car protection.
Author: David Cooper
