Jodie HumphriesJodie HumphriesFeb 02, 2021(2 min read)

Buying car insurance after an accident will cover you for future accidents, but won’t cover you for the accident you just had.

Having an accident is also likely to affect your future premiums.  How much is car insurance after an accident likely to cost you? That often depends on the cause of the accident you had and who was at fault. If you were not at fault, it shouldn’t affect you greatly. If you were, the price of car insurance is likely to rise as you’re considered a bigger liability by the insurer.

When buying your car insurance policy, consider asking your insurer how much does car insurance go up after an accident.

The circumstances of the accident can also affect your ability to buy car insurance. If the accident was caused by your reckless driving, your insurer may even cancel your car insurance policy for violating its terms. This may require you to buy a new policy urgently or run the risk of being underinsured. Remember that not reporting a serious at-fault accident to your current or future car insurance provider can also result in such cancellation if the insurer later finds out about the accident.

Related FAQ's

Can I get car insurance after an accident?

Buying car insurance after an accident will cover you for future accidents, but won’t cover you for the accident you just had.

Having an accident is also likely to affect your future premiums.  How much is car insurance after an accident likely to cost you? That often depends on the cause of the accident you had and who was at fault. If you were not at fault, it shouldn’t affect you greatly. If you were, the price of car insurance is likely to rise as you’re considered a bigger liability by the insurer.

When buying your car insurance policy, consider asking your insurer how much does car insurance go up after an accident.

The circumstances of the accident can also affect your ability to buy car insurance. If the accident was caused by your reckless driving, your insurer may even cancel your car insurance policy for violating its terms. This may require you to buy a new policy urgently or run the risk of being underinsured. Remember that not reporting a serious at-fault accident to your current or future car insurance provider can also result in such cancellation if the insurer later finds out about the accident.

Does car insurance cover contents?

Thousands of vehicles are stolen each year, but insurance can protect you from financial loss.

A common question you may have is what does my car insurance cover? This depends on the type of insurance and there are four basic types of car insurance, and each offers different cover.

 

Types of car insurance

Compulsory third-party (CTP) insurance indemnifies you against liabilities arising due to personal injuries to another party. A third-party fire and theft insurance policy covers loss to your car or third-party property in an accident. It also covers expenses if your vehicle is damaged in a fire or stolen. Third-party property insurance covers any liability resulting from damage to third-party property but any damage to your property is not covered under this policy.  Comprehensive policy covers most costs arising in case of an accident to either your car or third-party property.

 

Does car insurance cover stolen contents?

Does car insurance cover contents lost in case of a theft? Generally, any valuables stolen from the vehicle, such as your phone, are not covered under car insurance. However, some insurers offer vehicle contents insurance that does cover the loss of valuables from your car.

Consider reading your policy’s product disclosure statement (PDS) to find out if it covers contents, or contact your insurer directly.

Remember, there are several ways in which you can prevent theft of both your car and contents. Being a little more cautious can make a huge difference.

Does car insurance cover driving while intoxicated?

Will car insurance pay if drunk driving causes an accident? Driving under the influence of drugs or alcohol is illegal, however, some insurers may cover the liabilities.

Your driving history and experience are important factors that affect the car insurance premium. If you have had violations for drinking under the influence, insurers may perceive you as high-risk. They will then be more likely to charge you a higher car insurance premium.

But does car insurance cover drunk driving accident liabilities? Many factors are involved in answering this, here’s what you should know.

Amount of cover

Although driving while intoxicated is illegal, if you’re involved in an accident, your insurance may cover damages within the limits of the policy. While expenses should be covered under your car insurance for drunk driving accidents, you may face other penalties, like cancellation or non-renewal of your policy.

Premiums

Additionally, the premium on car insurance for drunk drivers may increase by as much as 79% if you’re convicted. Some insurers, however, won’t cover damages if you’re driving whilst intoxicated and you don’t comply with the conditions laid out in the Product Disclosure Statement (PDS).

Check "does car insurance cover you if you are drunk" in the terms and conditions of your policy if you have a history of such violations.

How to choose car insurance?

With so many types of car insurance out there, it can be a challenge to choose the right one for you. Factors to consider when choosing car insurance include the cost, the inclusions, and the benefits of each, which may vary from provider to provider. When choosing a car insurance company, spend some time comparing what is, and what isn’t, covered by the policies.

Compulsory third party (CTP) insurance is part of your car registration cost. However, CTP does not protect you against damage to your car if it’s written off after an accident or if it gets stolen. Moreover, you might have to pay for damages to someone else's property in case of an accident.

Other covers you may wish to consider are third party property insurance, third party property, fire and theft insurance, and comprehensive insurance. While you might want to get additional insurance, not everyone requires the highest cover, and it depends entirely on several factors, such as the make and age of the car or the area where you live.

You can compare car insurance providers to get a policy that suits your needs.

Can you have a car without insurance?

Can you have a car without insurance? The simple answer is ‘no’ and driving without insurance is illegal. Every vehicle in Australia is required to have at minimum a Compulsory Third Party (CTP) insurance policy to be registered to drive.

Having car insurance beyond CTP is entirely up to you as the driver and owner of the vehicle. You may want to keep in mind, however, that being in a car accident can be traumatic, especially if it results in vehicular damage or injuries.

Dealing with any expenses that arise in an accident when you are at fault can cause additional stress. This is especially true if you don’t have insurance coverage that will assist in paying for these damages.

Compulsory third-party insurance

In multiple states and territories, the cost of CTP insurance is included in the registration expenses. For the states or territories where it’s not included, CTP insurance needs to be confirmed before you’re able to pay for registration. CTP insurance protects you against claims arising due to accidental injuries or death when you are involved in an at-fault car accident.

Why is CTP inadequate?

CTP does not cover damage to third-party property or any of the vehicles involved in the accident. The driver who is responsible for the accident is liable to cover all the expenses. Therefore, if you only have CTP insurance, you’ll have to pay for other expenses, such as car and property repairs, towing, and potentially car rental. If you want a policy that covers these costs, you need a comprehensive or third-party property damage insurance policy.

If you’re asking, is it illegal to have a car without insurance, the answer isn’t simple. Specifically, it is illegal to not have a CTP policy at the very least, but any insurance beyond that is a choice. If you’re caught driving an unregistered vehicle --  if you don’t have a CTP insurance policy, that is -- you may receive infringement notices that include fines and a loss of demerit points.

Can I get a refund on car insurance?

Have you decided to cancel your car insurance policy? Maybe you’ve sold your car, or you found a better rate elsewhere.  Perhaps you’re just not driving it anymore. So what happens to the unused amount of your car insurance? Can you get a refund on unused car insurance in such a scenario?

It often depends on who cancelled the policy: you or your insurance provider. If you initiated the process of cancellation, then you may be able to get most, if not all, of your unused amount. There might be some cancellation fees involved.

However, if the policy has been cancelled by your provider, because you defaulted on a payment, then you will not receive any refunds. Keep in mind, sale of your vehicle, or traffic violations such as receiving too many speeding tickets, or being charged with reckless driving, are not reasons to withhold refunds.

If you pay your insurance monthly, your future payments will simply stop. However, many insurance policies are paid upfront for the year, as some companies offer discounts. If this is the case, get in touch with your insurer about getting a refund for the unused amount.

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. 

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