Car Insurance – Different Types
You normally have four choices. For real budget car insurance you can opt for a CTP Greenslip only, next the very basic third-party only cover, then you can add in protection against fire and theft and finally, you can go the whole hog and opt for fully comprehensive insurance.
Car insurance – CTP Greenslip only cover
Greenslips or Compulsory Third Party (CTP) insurance is the most basic form of car insurance and protects vehicle owners and drivers from legal liability for personal injury to other parties in the event of a personal injury claim. It is compulsory and is a condition of motor vehicle registration in NSW. Note that CTP Greenslip insurance does not cover you for damage to your property or other vehicles.
Car insurance – Third-party only cover
‘Third-party only’ is the most basic form of motor insurance that insurers are usually willing to sell. It protects other people if you happen to smash into them. Any damage to your own car that has been caused by your poor driving is not covered unless you can prove that someone else was at fault, in which case you will then have to claim off their insurance cover. If your car is destroyed in a fire or is taken for a joy ride never to be seen again you will not be able to claim.
Car insurance – Third party, fire and theft cover
This adds in protection in case the car is stolen or catches fire. So if joy riders steal your car or set it on fire, you’re covered for its cash value.
Car insurance – Fully comprehensive cover
Most people take out fully comprehensive car insurance, particularly on new vehicles as it means that no matter who was to blame in an accident your insurance company will pay out for the costs of repairs. Depending on how much your car is worth, this can be the best form of car insurance and, even though it will cost a little bit more, it will bring peace of mind. However, if you’re more inclined towards driving old bangers around, fully comprehensive insurance is probably a waste of money.