Car Insurance: What You Need to Know

Car insurance is one of the many annoying, expensive purchases in life that, if you own a car, you should always have.

While it won’t give you anything cool to use in a physical sense, it will ensure that should a journey go pear-shaped, you’ll be covered for any loss.

And if you think you’re too good for insurance because your driving skills are second-to-none, then let me remind you that even Bill Shorten – a man that wants to run the entire country – runs into a few parked cars every now and then.

“We don’t let him drive anymore.”

Before you lay some cash down on that sweet peace-of-mind you’re about to get, consider the type of insurance that’s best for you.


Types of policy


Compulsory Third Party, or CTP

This type of insurance is also referred to as a green slip and you don’t even have a choice in the matter, it’s a legal requirement of owning a car.

This will cover you for the death or injury of other people in the event of an accident, because the last thing you want to be worrying about in a hospital bed is paying for someone else’s.

Third Party Property

This will cover you for damage to other people’s property only – the bare minimum that old mate Bill would have wanted after his little prang.

This is ideal for people who want cheaper insurance but drive a clapped out bomb on that probably isn’t worth covering.

Third Party Property, Fire and Theft

Covers you for the damage you cause to other people’s property, as well as any damage done to your vehicle as a result of theft, attempted theft or fire.

A nice alternative for those that care about their car just a little bit.

Comprehensive

Comprehensive insurance will cost you the most, but will provide cover for your car, as well as other people’s property. A sensible policy for a sensible denizen of the roads.

But why stop at policy type? There is more to consider in the riveting world of motor insurance:


Policy extras


Think about what you need and what you’ll use. For example, if you rely on your car everyday to get to work, you might want to think about adding hire car to your policy, or you’ll have to find an alternative for your daily commute.


Nominated excess


You can choose to lower your premium based on the cost of your excess. The higher your nominated excess amount, the lower your premium will be.

Carefully consider this option before making your excess stupidly high. Paying a low premium may be nice, but if you’re excess is going to be more than the damage caused in an accident, there’s not much point, is there?


Everything matters


The cost you’ll pay for your policy is based on pretty much every factor you can think of. The value of the car, your driving record, where you live, where it’s parked at night – all of these will play a part in the final cost.

To save money, try and park your car securely at night and avoid making any modifications to it. It’s also worth paying your premium yearly, as monthly, quarterly or bi-yearly payments will cost you more in the long run.

Finally, if you think it’s a good idea to withhold information from your insurer in an attempt to score a cheaper premium, you’re only setting yourself up for pain.

If they find out you’ve been a dirty liar, it will give them grounds to not pay out any claims that you might have, meaning your policy is basically void. Don’t be silly.