A car insurance policy covers the insured person’s liability in case they are responsible for a motor vehicle accident. The extent to which car insurance covers you will ultimately depend on the the type of insurance policy you choose and the level of coverage it offers. Across all Australian states and territories, motor vehicles are required by law to be registered and insured under a compulsory third party (CTP) insurance policy at a minimum.
All drivers face a certain level of risk each time they get behind the wheel, which is why car insurance is necessary even for those who consider themselves to be responsible. If you're involved in a car accident and are the at-fault driver, your car insurance policy can help pay for the expenses incurred by the other driver, be it hospital payments or car repairs. Your insurance may also cover the cost of damage to yours and other people's property, including accidental damage to your car from natural disasters such as windscreen damage from hail.
The incidents and damages covered by your car insurance policy depend on the type of car insurance product you choose, ranging from CTP insurance to comprehensive car insurance which, as its name suggests, covers most kinds of accidental damage. The amount you may be charged for your policy will depend on a number of factors including the type of insurance, the make, model, and age of your car, your driving experience, and where you live.
Comparing car insurance quotes online before buying or renewing your insurance policy can help you better understand the kinds of coverage Australia’s top insurance companies offer. It may also be helpful to read through the insurer’s Product Disclosure Statement (PDS) to understand the exact limits, inclusions and exclusions.