Car insurance is a very important aspect of owning a vehicle. Although the thought of getting into an accident or crash can be quite scary, it’s always best to be prepared. After all, you’re looking to protect your investment, right?
When you buy insurance, you are essentially paying for an insurance company to pay out money to you and your passengers if you are involved in an accident—and in some cases, you won’t need to pay out yourself either.
So when obtaining insurance for yourself, you need to consider what type of cover to get for your vehicle and your passengers.
Comprehensive insurance is the most popular type of car insurance. It covers you for any type of accident or incident that involves your vehicle, no matter where it happens or who is involved.
Comprehensive covers you in the event of:
- Vandalism;
- Fire;
- Flooding;
- Animal collisions;
In many situations, comprehensive insurance covers you for accidental damage (even if it is your fault) to your vehicle.
This type of insurance covers you for damage done to other people’s property, as well as damage to your vehicle. In the event of a fire, the insurance company will cover repairs and in the case of theft, they will cover the amount of money you have lost.
Third-party damage insurance only covers you for damage to other people’s property. It will not cover damage to your vehicle even if it is your fault. The types of insurance you choose to take out will need to be carefully considered and you will want to go through the policy thoroughly before agreeing to the contract. More experienced and safe drivers may not need this, but teenagers and nervous drivers might.
As the moniker suggests, this type of insurance is compulsory in all states of Australia. It covers you for all of the above, as well as for any passengers, pedestrians, and cyclists that are injured in an accident that you have caused.
Keep in mind that when choosing comprehensive insurance, you also have the choice of how your car will be valued. As for the value, the compensation you may get depends on the following factors:
- Agreed Value - As the name of the option says itself, this is when you have agreed on a value for your car, which is fixed between you and your insurer.
- Market Value - The market value of your car will be determined by the quality, make and model of your vehicle. The market value is dependent on the supply and demand of your car and where it can be sold.
Car insurance gives you the peace of mind you need. It protects you and your passengers in the event of an accident and keeps your finances in order. With that in mind, it's important that you choose the right type of insurance that will be suitable for both you and your situation.
Ensura is a team of excellent general insurance brokers with a simple mission: to help people get the right insurance at the right price. Get in touch with us and explore our risk management solutions, so you can gain peace of mind without burning holes in your pockets.
Disclaimer: As with any insurance, the cover will be subject to the terms, conditions, and exclusions contained in the policy document. The information contained on this webpage is general only and should not be relied upon as advice. The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific insurance product. It is only intended to provide education about the financial and insurance industry. The views reflected in the commentary are subject to change at any time without notice.
