First Time Drivers: Your Car Insurance Need-to-Knows

First Time Drivers: Your Car Insurance Need-to-Knows

Every first time driver is excited to finally get out on the road. Driving opens up so many unique possibilities that simply aren’t available to those who don’t know how to drive. But getting behind the wheel of a car comes along with a major assumption of responsibility. Knowing the rules of the road will only get you so far—you must also have common sense, courtesy, and an essential add-on in the form of car insurance coverage.

Car insurance is a must-have in virtually every place you could possibly drive a vehicle. This coverage is what protects drivers from the destructive power that comes along with the operation of a motor vehicle. While drivers don’t intend to hurt one another, it happens every day all across the country. On average, about three people are killed on Australian roads as the result of a car accident every day. As well, many other non-fatal accidents occur throughout the nation, and while accidents and fatalities are on a long running downward trend, there is no way to completely eliminate road accidents and bodily injury.

The type of car insurance you hold can change your approach to the road.img

Car insurance comes in a variety of different classifications. Insurance companies provide a list of policy options that range from Compulsory Third Party (CTP) to specific property damage and collision coverage, as well as comprehensive coverage that gives a driver optimal peace of mind while out on the road.

The type of car insurance coverage you ultimately decide to purchase depends a lot on the personal factors surrounding you and your vehicle. On older models, it might not be the best option to go with the highest grade plan. Older cars are often worth less, and a totaled vehicle won’t net you a win in the long run if it’s covered for damage. However, on a brand new car you will likely want to protect it from anything the world might decide to throw your way. Comprehensive coverage protects you against theft, fire, and accidental damage, regardless of the offending driver. Unlike these higher end coverage options for car insurance, compulsory cover—which comes at a significant discount on the monthly premiums—protects you solely in the event of a collision caused by you and resulting in harm to the other driver.

How does compulsory coverage work?

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Compulsory coverage acts as a safety net for all drivers on the road. Because everyone needs this basic level of coverage, you can drive on any road in the country knowing that if you are injured as a result of someone else’s negligence then your medical bills will be covered and you can get back to your life after a recovery period. Without an insurance policy, we would all be left to our own devices when it comes to piecing back the broken bits of our lives, regardless of the at fault driver. Cars are an expensive purchase, and most Australians, while savvy savers, aren’t able to just spend extra cash on a new vehicle after a total loss. This setback can create absence from work, hardship in getting to and from the doctor’s surgery, and a severance of daily activities that bring joy into our lives.

The purpose of signing on with one of many possible auto insurers is to provide this peace of mind, this safety net in the event of an accident. No one plans for these disruptions, but they manage to find us anyway, and often at the worst possible times. New drivers are particularly susceptible to damages because they don’t have a long driving record and the experience on the road to maneuver out of harm’s way in the split seconds that precede a collision. Learning to handle a dangerous situation comes with experience, so adding as much coverage as makes sense in the early years of travel on the roads is often a great way for new car owners to protect themselves from property damage, medical expenses, and any other surprises.

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