Car insurance can feel like a tricky web to navigate. Everyone seems to have their own sage wisdom on the inclusions you need and the coverage levels you don’t. But ultimately, choosing a car insurance coverage is all about your own unique needs, driving requirements, and local conditions. Choosing a car insurance provider and sifting through coverage options is an intimate exercise that is different for each driver. Knowing yourself and your needs is the first step, but understanding your coverage options is also essential.
The Bottom Line
Car insurance is essential for roadworthiness. You simply cannot drive on an Australian road without one of many coverage options to protect yourself and others from property damage or bodily injury. Driving a car is a dangerous proposition, and yet there are 13.3 million registered vehicles in the country: more than one for every Australian of driving age!
These same restrictions exist all over the world, and while Australian roads are becoming safer, the main protection you have as a driver is in knowing that you won’t personally have to pay out to make someone whole in the event of an accident that you’ve caused. Likewise, insurance gives you a warranty of sorts in that an accident that you didn’t cause won’t leave you wondering how you will pay for medical expenses or a new car to get to work. Compulsory coverage that all drivers must own in order to strike out on the road covers the damages that may be caused to others.
Comprehensive insurance coverage does it all.
Comprehensive car insurance is the top of the line car insurance option. A comprehensive insurance policy protects you against damage caused by an accident or theft. Regardless of the at fault driver, you can rest easy knowing that your bills and vehicle are covered by the auto insurers with this ultimate level of coverage. The peace of mind extends beyond just your own vehicle, however. A comprehensive insurance policy goes beyond the minimum coverage and protects you against damages to other drivers’ cars in the event that you cause an accident and are found to be the at fault driver in the collision. Comprehensive insurance is a blanket policy that protects you under essentially all circumstances.
Compulsory coverage is adequate too.
The minimum coverage amount is also a fine option. A Compulsory Third Party (CTP) auto insurance coverage protects you against injuries or accidental death that you might cause as a result of a road collision. Accidents on Australian roadways are decreasing at a rapid pace, so Compulsory Third Party coverage may be all a good driver needs to feel secure on the road.
That being said, it’s important to understand what this option doesn’t protect against. By choosing CTP insurance – sometimes called Green Slip insurance – you can lock in a great, low rate for your insurance throughout the year. However, without a greater level of protection while driving you will be liable for damage caused to your vehicle in the event of an accident.
On an older car this may be the perfect coverage option, but for newer or more expensive models, these repairs can be incredibly costly. This means you will need to weigh a higher premium against the possibility of sky-high repair bills down the road. No one is perfect, and the sheer volume of traffic accidents, especially those at low speeds, proves this. A minor fender bender could cost you thousands to repair on your own. But with a comprehensive insurance coverage plan, a smaller incident might be more cost-effective to handle on your own dime anyway because of the threat of increased premiums after a claim.
While all drivers must carry some level of coverage, weighing your options against your needs is a crucial part of the driving experience.