No one likes to think about insurance - until the day they need it. A cheaper policy may save you a few dollars today, but it can cost you thousands in the long run.
Before you make a decision about comprehensive car insurance, it's important to understand the different levels of car insurance available.
Compulsory Third Party (CTP) insurance - also known as your green slip - is exactly as the name suggests. It is compulsory for all motor vehicles in Australia, and it covers third parties for injury or death as a result of an accident.
Third Party Property insurance covers damage to a third party's vehicle
Third Party, Fire & Theft insurance adds additional coverage for your car if it is stolen or set on fire
Comprehensive car insurance covers damage to your vehicle and a range of other optional extras, depending on your level of cover.
Now that you have a breakdown of the different types of car insurance available, here are three reasons to consider comprehensive car insurance to protect both your automobile and your finances.
Comprehensive car insurance is the only auto insurance that will cover you for damage to your own car should you be at fault in an accident. You may think it would be a simple matter to cover any repair costs yourself, but in reality this process can cost you both significant time and serious money.
Comprehensive car insurance can cover you not just for the repairs or replacement of your vehicle, but can also cover car hire costs while you wait for repairs.
Many insurers will include hire car cover after a theft or attempted theft within a standard comprehensive car insurance policy, with other incidents included under optional extras. So you'll keep moving, even when your car isn't.
Not only does comprehensive car insurance keep you on the road, it will also protect your financial livelihood in the event of an accident.
Car repairs rarely come cheap, and car replacements even less so. The cost of an automotive accident is frequently thousands - and sometimes even tens of thousands - of dollars. That's more than enough to put a serious strain on your bank account.
With comprehensive car insurance, you can rest assured that you'll be covered for the repairs or replacement of your vehicle should you have an accident. This way, you can determine a realistic excess amount to base your level of cover on - so you'll only pay as much as you can afford.
It's easy to be put off by the more expensive price tag that comprehensive car insurance comes with. But the point isn't to purchase a premium product for the sake of having a premium product - but for the added value it provides.
Third party car insurance covers the bare minimum to ensure that third party costs are covered in the event of an accident. This level of cover may be considered if you have an old car that isn't worth much.
However, if you have recently purchased a vehicle or your car is of high value - comprehensive car insurance covers you for all of life's automotive ups and downs; from collisions to natural disasters and vandalism.
For more information, please visit the NRMA website for a guide on Comprehensive Car Insurance. The site also includes helpful videos on how to pick the right car insurance and how to make a car insurance claim.
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