Types of coverage:
- Compulsory third party (CTP) insurance. Also called Green Slip.
- Covers injuries of the affected parties due to motor accidents.
- It’s compulsory by law. You can’t drive without this.
- Third party property insurance — covers damage to cars you hit.
- May be the best option if your car isn’t worth much and isn’t too important.
- Fire and theft insurance — covers fire and theft specifically.
- Comprehensive insurance — covers:
- Your car’s damages.
- All of the above (fire, theft, their car’s damages, etc.)
Notes:
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You can either decide to be compensated with ‘agreed value’ or ‘market value’.
- Agreed value — “pay me a fixed price” (at a slightly higher premium)
- Market value — “pay me based on whatever my car is worth at the incident’s time”
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Some policies give you free roadside assistance if you’re stranded as a result of a car breakdown.
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Often, you must make a claim within X days of an accident before it’s considered too late.
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Your premium is essentially a measure of the likelihood you’ll file a claim.
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“Exclusions” refers to things you’re not covered for. Typical exclusions include damage caused when you’re driving under influence, vandalism, weather-related damages, etc.
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You may have to pay an excess even when you’re not at fault. Some insurance policies won’t do this though.
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An ‘underwriter’ is the person/entity who calculates the risks behind an insurance policy for an insurance company.
Tips:
- Ask your insurer if they can give you discounts, such as for installing an alarm on your car.
- Always take the largest excess possible.
- If given the option, consider electing to choose your own repairer. It costs more but you have more control.
Which company is best?
- Allianz: extensive coverage,
- Suncorp:
- NRMA
- AAMI
- Budget Direct
- People say you need to do a lot of legwork compared to other insurers who will just take the stress off you.
- Coles
- Woolworths:
- 10% off one shopping session per month.
- Youi:
- Reddit hates them because they spend a lot on marketing as opposed to service quality.