By Lauren Ferrone
Published: Tuesday, May 14, 2019
If your car’s involved in a bingle, the first thought that may pop into your head is: “who’s going to pay for this?” Let us take you through the ins and outs of different car insurance types, so you can decide which one’s right for you.
Compulsory third party (CTP) insurance
As the name helpfully points out, compulsory third party (CTP) insurance is compulsory.
Its purpose is solely to insure you against liability for death or injury to other road users caused by your vehicle, and it’s a legal requirement to have it before driving on the road. You automatically get it – and pay for it – when you register your car.
Currently, CTP insurers are randomly selected by the state government. That’ll change from 1 July, with new rules giving South Australian drivers more choice when it comes to picking an insurer. Next time your registration is due for renewal, you’ll be able to choose from a list of four government-approved insurers.
Keep in mind, CTP doesn’t cover any damage to your car or another person’s vehicle, so it’s important to get a form of car insurance too.
Third party property damage insurance
Are you in the wrong? Third party property damage insurance will cover accidental loss or damage you cause to another car or property in a crash. You’ll still have to pay out of your own pocket to get your vehicle fixed if you’re found to be at fault. To find out exactly what’s covered with third party property damage insurance, make sure you’ve done your research and thoroughly read any Product Disclosure Statement (PDS).
Third party fire and theft
This type of car insurance covers damage to other cars and property, plus your own if the damage is caused by fire or if your pride and joy has been stolen. It won’t cover your car if you cause a crash. That’s where comprehensive comes in. It covers other cars and your own – even if you’re at fault.
The crème de la crème of car insurance, comprehensive is the highest level of cover. It includes all accidental damage, fire and theft, and damage to other people’s cars and property if you’re at fault. Comprehensive car insurance also covers for costs associated with weather damage, such as a falling branch or hail. Best of all, this type of cover usually extends to anyone driving the vehicle.