Irrespective of whether a driver is running around in a Ferrari or a second-hand hatchback, it’s still highly likely that a motor vehicle will be the second largest investment that most Australians will make in their lifetimes. One of the biggest features of safe and responsible driving is having the right level of Australian auto insurance cover.
There are three different levels of Australian auto insurance and these operate similarly to car insurance within the United Kingdom. The three-tiered system demands a minimum level of cover although a number of different policy types are available.
Compulsory third party Australian auto insurance is the absolute minimum coverage allowed and this is paid as part of Australian vehicle registration fees to provide cover against any personal injury or medical cost claims if a driver is considered to be at fault in an accident.
The mid-level category of Australian auto insurance is third party cover. This type of policy provides cover for damage to another vehicle and any property within it. Third party Australian auto insurance does not cover damage costs to the vehicle of the policy holder. However, it is important to note that third party cover can be upgraded to include fire and theft coverage for an insured vehicle although premiums will be a little higher for this type of policy.
Comprehensive Australian auto insurance makes up the top tier of coverage and as well as offering protection for third parties, a policy will also cover accidental damage for the vehicle of the policy holder as well as any property contained inside.