A car insurance policy is an agreement between the policy holder and the car insurance provider. A car insurance policy states all the inclusions and exclusions of what you are covered for and what you are not.
Most of these are listed in the product disclosure statement (PDS), so make sure that you read this before you agree.
There are three different levels of car insurance that you can choose to take out a policy for:
- Third party property
- Third party fire and theft
- Comprehensive car insurance
Comprehensive car insurance is the highest level of car insurance that you can purchase. When you take out a policy for this type of car insurance you are covered for damage done to your car as well as other vehicles involved. This type of car insurance therefore costs more than the other two types but at least you can rest assured knowing that you have the right cover.
If you are in the market for comprehensive car insurance, shop around and compare car insurance online to find a policy that not only costs you less but also that covers you for more.
When applying for a quote, most car insurance companies allow you to pick and choose from a range of extra options to include on your policy. That way you can tailor your car insurance policy to suit your needs.
For instance some offer a range of policy benefits such as accident hire car benefits, no claim discount protection and roadside assistance. Be aware that if you want to include these on your policy you will more than likely have to pay extra. These extra options and the prices will be vary between car insurers, so make sure you compare to see which policy suits you best.
Before you take out a policy make sure you not only read the inclusions but the exclusions as well as these are the things that you are not covered for such as wear and tear on the car. Again these may vary between car insurance companies.