I’m an Australian and wish to purchase auto insurance. What type of coverage will I need?
This will obviously depend on the type of vehicle you are driving and the level of coverage you wish to purchase. If you are the owner of a new or nearly-new car, you will need to purchase a higher level of coverage than you would with an older vehicle, especially if there is an outstanding loan or finance agreement secured upon it.
At the moment, I’m driving an older car. What type of coverage is available?
If your vehicle has a low market value, you won’t need as much coverage. Indeed, the only thing you need to seriously concern yourself with is your liabilities to other road users. This makes third party coverage, also known as green slip insurance, a great choice. Your own vehicle won’t be protected but this is often negligible as repair costs will usually outweigh the value of an older car anyway.
I’m not sure if that’s enough protection. Do I have other options?
Yes. Third party (fire and theft) auto insurance is an ideal intermediate option that covers your liabilities to other motorists. However, any damage caused to your vehicle by fire, or any losses incurred due to acts of theft, will also be covered.
Can I insure comprehensively anyway?
Absolutely! However, it won’t be as cost-effective on an older model, especially if you are unlikely to make a claim. Comprehensive auto insurance provides blanket coverage and, naturally, this makes it more expensive. In most cases, this level of coverage is more suited to newer models.