Every car big or small in Australia needs to be insured. This is also essential for your own safety and security that your car is insured before it starts running on the road. There are several types of car insurance available from which you can choose the most suitable one.

Types of car insurance

CTP insurance

Throughout Australia, CTP insurance is the basic insurance of the car and is compulsory. Mostly cost of CTP insurance is included in the registration amount of the car and depends on various factors like the cost of the car, size, age of the car, condition of the car. However, in some states you have the liberty to choose the insurance provider for the CTP insurance as well.

Third party theft and fire insurance policy

Third party, theft and fire policy cover you from liability or damage caused by your car to other people and their property. Theft insurance protects you in case your car is stolen and fire insurance in case your car catches fire.

 Third party property cover:

This policy covers you from damage that you may have caused to another person’s vehicle or property. However, this policy does not cover you for damages to your own car and very limited cover for any insured driver in the car.

Comprehensive cover:

This policy covers the cost of repairs and replacement in certain cases of your vehicle irrespective of your fault or not. It also covers the cost of emergency repairs, transportation costs and damage caused by other drivers.

One of the major issues in vehicle insurance is the value of the vehicle. Most insurers give you the option to decide on the agreed value of the vehicle or the market value of the vehicle.

What is the agreed value and market value?

Agreed value of the car is a value decided between you and the insurer regarding the value of the car for insurance purpose and remains fixed till the renewal of insurance.

Market value of the vehicle is the value at which your vehicle will sell in the market and depends on the model, age and condition of the vehicle. If you are looking for online car insurance, most insurers will ask you to upload the photos of your vehicle to ascertain the value of the vehicle.

Inclusions in comprehensive car insurance

Comprehensive car insurance usually covers your vehicle in case of accidents, theft and fire. It also includes loss and damage of vehicle due to hail, storm and flood. There is also a certain amount that is set for the loss or damage of personal possessions in case of accident. The policy also covers towing of your vehicle from the place of accident to approximately 100kms.

Can I lower my comprehensive insurance premium?

There are certain discounts on comprehensive car insurance policies. These discounts are available to people to satisfy certain requirements.

There is a discount for low risk profile drivers. This means that if you drive less than 15000 kms a year, you can take low kilometer policy.

If you are buying a new comprehensive insurance policy and are looking to compare car insurance quotes, you can check out with iSelect.