Arranging car insurance

There are a number of car insurance options available, allowing you to choose a level of cover that suits both your requirements and your budget..

There are many different options available to the car insurance buyer, and it’s important that you choose a product and a company that suits your needs. When comparing insurance products, always check the policy cover and details carefully and ask questions about anything you don’t understand.

It is important to ensure that you have insured the car you are purchasing before you drive it away. Most companies will arrange the cover over the phone for you, and provide you with a policy or cover note number.

If you are trading in your existing vehicle, make sure to enquire if you can transfer the insurance from your old vehicle to your new vehicle as most companies offer this service.

If at the time of delivery the car is not insured and is subsequently involved in an accident, you will not be covered for any damage to your own vehicle or a third party’s vehicle. This could cause significant financial hardship.

If you have taken out a loan for the car you are purchasing, check with the financial institution involved to see if they have any specific insurance requirements.

Comprehensive car insurance

Comprehensive car insurance gives you the greatest level of protection against financial loss in the event of damage or destruction of your own car, as well as the vehicles and property of others.

For this reason you will pay more for comprehensive car insurance than you will for the other voluntary covers specified below.

Compulsory Third Party insurance (CTP)

As the name suggests, CTP is compulsory and is paid each year with your car registration fee. CTP protects you against any claims that arise because of death or injury to another person, caused by the negligence of anyone driving your car.

CTP does not cover damage to your car, or other vehicles or property; therefore most people choose to buy additional voluntary insurance for their new or used cars. This not only offers protection against financial loss, but also provides peace of mind while on the road.

There are many different options available to the car insurance buyer, and it’s important that you choose a product and a company that suits your needs. When comparing insurance products, always check the policy cover and details carefully and ask questions about anything you don’t understand.

There are three main types of voluntary car insurance cover:

Third Party Property (TPP)

Third Party Property insurance will protect you against financial loss arising from any damage to another person’s property, but will not cover the damage to, or theft of your own car. It is the cheapest form of voluntary insurance you can buy.

RACQ recommends that you obtain at least Third Party Property cover on your car.

Third Party Property - Fire And Theft

Third Party Property Fire And Theft is an extension of the Third Party Property policy. It costs a little more, but it gives you the added protection of fire and theft cover for your vehicle.