Whether you use your car for long journeys across the country to see family and friends or for your daily commute to work, cars are easily the most popular mode of transportation. This makes having an appropriate level of insurance a must-have for all car owners. That being said, trying to get your head around the ins and outs of each type of cover might be the most painful journey motorists have to take in their search for peace of mind.
To help demystify the process and get you going in the right direction, we’ve written a user-friendly guide on the different types of car insurance. We’ve also identified some scenarios where you may need to make a claim and seek an insurance repairer.
A quick summary of the four types of car insurance
There are four main types of car insurance available for Australian motorists. We have listed these in order, with the highest level of cover at the top and the lowest level of cover at the bottom.
Comprehensive car insurance is the most extensive form of car insurance in Australia, offering the most complete coverage. It safeguards in the event of a wide range of scenarios including theft or damage to your car, as well as protecting the property of others during an accident.
Third party fire and theft insurance covers damage and theft of a policyholder’s own vehicle, as well as liability coverage for any damage caused to third-party property.
Third-party property damage insurance covers damage to other people’s property (e.g. their home or car) but does not cover damage to your car.
Compulsory Third-Party (CTP) insurance is a basic legal requirement for all registered vehicles in Australia. It covers injury or death to other people involved in a car accident for which you are deemed liable. In NSW, CTP insurance is also known as the green slip and in ACT it is known as the motor accident injuries (MAI) insurance.
What does Comprehensive Car Insurance cover?
As the name suggests, Comprehensive Car Insurance is the most comprehensive form of car insurance available to Australian motorists. It protects damage or theft to your car, as well as to the property of others during an accident, irrespective of who is at fault.
This level of cover includes insurance repairs or replacement for the widest range of scenarios, including natural disasters, theft, and collision damage. Some Comprehensive policies may also offer additional benefits such as roadside assistance, rental car coverage, and even coverage for personal items that were in the car at the time of the incident.
Because Comprehensive policies offer the highest level of protection, they typically come in at the highest price point.
When would you claim Comprehensive Car Insurance and require an insurance repairer?
Picture this scenario; you are driving on a country road and without warning, a kangaroo jumps in front of your car, causing significant damage to the bumper and side panels. In this scenario,
Comprehensive Car Insurance would cover the cost of getting your car repaired by an authorised insurance repairer. If the damage was beyond repair, it would also cover the replacement of the car, as well as any medical expenses for the driver and passengers.
What does Third-Party Fire and Theft insurance cover?
Third-party fire and Theft Insurance provides cover for damage to other people’s property while you are driving. It also includes cover for your car if it is vandalised, maliciously damaged, stolen or destroyed by fire.
This policy does not cover any damage to your car if you are the one that caused the accident. You can think of Third-Party Fire and Theft Insurance as the next step up from Third-Party Property Damage Insurance, and a step down from a Comprehensive Insurance Policy.
When would you claim Third-Party Fire and Theft Insurance?
Imagine this scenario; you park your car on the street overnight and in the morning, you find your car has been stolen or damaged in a fire. In this case, you would file a claim with your insurance provider for the theft or required insurance repairs of your car. Your insurance policy should cover the cost of replacing the stolen car, up to the stated limit on your policy.
What does Third-Party Property Damage Insurance cover?
Third-Party Property Damage car insurance is the lowest level of optional car insurance a motorist can purchase and covers damage to the property of others if the policyholder is at fault in a car accident. It does not cover repairs or replacement of the policyholder’s own car or any personal injury. The option of including additional benefits to your policy is usually possible, but these are often limited at this low level of coverage.
When would you claim for Third-Party Property Damage?
Let’s imagine you’ve hit another car while reversing and caused significant damage. You could then file a claim under your Third-Party Property Damage policy to cover the costs of the insurance repairs. In this scenario, we would recommend getting your car booked into a trusted insurance repairer. Make sure to always ask if the company is approved for your insurance company, e.g., RAC-approved repairers.
What does Compulsory Third Party (CTP) insurance cover?
Compulsory Third Party (CTP) insurance is mandatory for all registered car owners in Australia and covers injuries or deaths as a result of a motor vehicle accident that you’ve caused. This type of insurance does not cover damage to vehicles or property. It is designed to provide a safety net for the most serious and potentially financially devastating outcomes of accidents on the road. This type of insurance is required by law and is the minimum coverage a driver must have to legally drive.
When would you make a claim for Compulsory Third Party (CTP) insurance?
You would make a claim for Compulsory Third Party (CTP) insurance if you were involved in a car accident where someone else was injured or killed and you were found liable. CTP insurance covers the cost of compensation for injury or death caused to other people in an accident for which you were at fault.
It provides financial protection for other road users, such as passengers, other drivers, and pedestrians, in the event of an accident caused by the policyholder. This level of coverage doesn’t include the work done by insurance repairers.
Why Gino’s are RAC Approved Repairers
A car accident is something we all wish to avoid. Despite this, there may be times when the unexpected is just around the corner. To help you repair any busted bumpers, sort out any serious scratches and remove any dreaded dents the right type of car insurance is essential when making a claim and getting you back on the road.
Gino’s is an Allianz and RAC-approved repairer. If you’ve recently been involved in a car accident and made a successful claim, use a trusted automotive insurance repairer like Gino’s to get you back on the road in no time. Our expert team are on hand to provide advice and support, so contact our insurance repairs team today to discuss how we can be of assistance.
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