Which Car Insurance?

If you are looking for car insurance in Australia it's important to get a number of online quotes and compare car insurance to get the best car insurance for your circumstances. This will help you understand which car insurance is right for you. 

At RateCity we can help you better understand this space with our car insurance guide which details the steps involved in getting a quote. Firstly though, if you have splashed out on some new wheels and are shopping around to buy car insurance, it’s worth understanding the difference between ‘compulsory third party’, ‘comprehensive car insurance’ and ‘third party property’. 

Compulsory third party (CTP): CTP, or green slip insurance, is the car insurance you buy when you register your vehicle.  It insures anyone driving your car (you or another driver) against claims brought by another person, or their family, for any injury or death caused by your vehicle, and assuming the driver of your car is responsible.

That said, CTP doesn’t cover damage to property caused by your vehicle. So, if you bump into another car, your insurer won’t reimburse the repair costs. CTP premiums are calculated against your age, the age of the car and where you live, among other factors. CTP is very different state to state around Australia, so make sure you check your state government’s vehicle registration website to understand the system. 

Comprehensive car insurance: This type of car insurance covers damage to your vehicle, and the other vehicle caught up in an accident. As part of the policy, the insurance company will pay costs up to the agreed or market value, which is calculated when you renew the policy. It may also cover registration costs for a replacement car, and some optional extras, such as alloy wheels (depending on provider).

With comprehensive car insurance, you also have the opportunity to select an ‘excess’, which is the amount you’ll pay if you cause an accident. While, it’s possible to trim the excess, this may result in a higher premium. On the flipside, a higher excess may help trim the premium.

A no claim bonus (NCB) is another feature you’ll need to grasp before you buy car insurance. The NCB is a premium discount relating to your claim history. Generally speaking, the more claim-free years you rack up, the bigger the NCB.

Third party property: If you’re determined to buy car insurance and money is tight, third party property insurance might be worth considering. It’s often a cheaper option than comprehensive car insurance, but only protects you against damage claims to other people’s property caused by your car, assuming it was at fault. It doesn’t cover damage to your vehicle.

Now you have a better understanding you can start comparing car insurance by getting an online car insurance quote now.

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Does insurance cover a stolen car if keys were in the car?

A car insurance policy that covers the theft of your car, such as third party fire and theft insurance, usually covers a stolen car, even if the keys were in the car’s ignition.

However, your insurer may deny the claim if you live in an area where there have been several car robberies reported recently. They will see you leaving the keys in the car as a case of negligence. In such cases, your insurance provider may even expect you to have installed anti-theft security measures in your car. 

You may need to confirm whether or not you left your keys in your car, and if they had been stolen or misplaced, before filing your car insurance claim. The loss or theft of your car keys may be covered by a comprehensive car insurance policy, but usually as an optional item.

If you can confirm that your car keys were stolen, mention this in your claim as this will help establish that your car was not stolen as a result of your negligence.

Can you insure your car for 6 months?

Most Australian insurers won’t offer you a 6-month car insurance policy, so you may need to buy a policy that covers your car for damages and cancel it after six months. You will need to purchase comprehensive car insurance to protect your car from accidental damage, theft, vandalism, or natural disasters.. 

Consider checking whether your 6-month comprehensive car insurance will cost more if you pay monthly or six-monthly premiums instead of a one-time annual premium. Another question to ask the insurer is whether you’ll need to pay administration or cancellation fees when you cancel the policy.

Alternatively, you can look for a suitable ‘pay as you drive’ car insurance policy, which usually offers you the coverage of a comprehensive car insurance policy but only requires you to pay for the distance driven. Such a policy may not be the ideal 6-month car insurance plan as it is based on how much you drive rather than for how long. If you need to drive a lot, you may end up paying more than you’d pay for regular car insurance.