Comprehensive auto insurance represents the premium level of coverage for road users in Australia. Although comprehensive policies may not be ideal for everybody, owners of new or nearly-new vehicles will receive a series of benefits from the detailed coverage that they provide. It is important to note that comprehensive auto insurance is the most expensive form of coverage available in Australia.
Initially, it is important to establish the reasons behind purchasing auto insurance. In Australia, it is a legal requirement to have a valid auto insurance policy in place before a vehicle is taken onto the road. Failure to do so can result in a series of fixed penalty fines and persistent offending will eventually lead to an outright driving ban. Auto insurance protects the policyholder from any liabilities and financial losses suffered in the event of an at-fault accident.
A comprehensive auto insurance policy, in comparison to either of the third-party alternatives available, covers the vehicle of the policyholder in the event of a road accident damage, fire or theft. Naturally, this type of policy will also cover liabilities to any third-party drivers including injuries, damage to their vehicles or any other property that they may own.
Although many Australians view comprehensive auto insurance as a form of blanket coverage, there are a series of potential problems that will not be incorporated into the terms and conditions of a policy. Rust, mechanical failure, electrical problems and general wear and tear are considered to be unrelated factors and any repair work concerning them will have to be paid for independently.