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Car Insurance Quotes: What to Look For
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As annoying as it may be, car insurance is essential when you own a car. Although you might consider yourself a perfect driver, the unpredictability of the road means car insurance is a must. There are different types of car insurance that all have different forms of cover. So, it can be confusing when deciding which one is best for you. Price may be your biggest concern when comparing different car insurance quotes. Read on, however, to find out what other factors you should consider when making your decision.
The basics of car insurance
Many of us know what car insurance is, but for those that don’t, let’s break it down. Car insurance is an insurance policy that covers damage to your car or damage caused by your car. Damage to your own car includes accidents, theft etc. Whereas damage caused by your car includes any damage or injury you’ve caused to someone else’s car, property or themselves. A car insurance quote is an estimate of what the cost would be for insurance cover from a potential insurance company.
While it may seem like a waste of money, car insurance is a necessity in the modern world of transport. The annual economic costs of road crashes in Australia is reportedly around $27 billion. In 2015, there were 54,094 vehicle thefts recorded – that’s over a thousand a week. These stats alone make it pretty clear why car insurance is mandatory for anyone who owns a car.
For more general information on car insurance, visit the Moneysmart website.
Types of car insurance policies
There are several different types of car insurance options. These differ in terms of price and coverage in car insurances quotes. However, the most common types of car insurance policies in Australia are:
- Compulsory Third Party Insurance
- Third Party Insurance (not to be confused with Compulsory Third Party Insurance)
- Comprehensive Insurance
- Third Party, Fire and Theft Insurance
Below we’ve provided a breakdown of what these different types of policies cover.
Compulsory Third Party insurance (CTP)
In all Australian states, you need to have CTP insurance before you register your car. It covers any damage you may cause to another person’s vehicle, property or wellbeing.
Third Party Property cover
Third Party Property cover is a basic type of car insurance. This is usually a less expensive policy than others. It covers damage you cause to another person’s property, vehicle or themselves.
Third Party Fire and Theft cover
This policy covers some damage to your car while paying for any damage to another person’s vehicle. In particular, it covers fire and theft protection for your own car as well as any damage to another person’s property if you cause a collision.
Comprehensive car insurance
This policy provides total protection of your vehicle if you’re involved in an accident. It covers the cost of repairs or replacement of your car due to accidents, theft, fire or vandalism. It also covers the cost of repairs to another person’s vehicle due to a collision that’s your fault. Additionally, there are extra perks such as windshield cover, roadside assistance, and car hire.
Choosing the right car insurance quote
When comparing different car insurance quotes, there are a number of factors that should influence your decision – not just price! We’ve listed a few of these below to guide you in the right direction.
The type of insurance you need
This largely comes down to your personal preference. What type of cover do you want? How much do you want to spend? These are the types of questions that should help you make an informed decision on car insurance quotes.
For example, if you’re looking to save a bit of cash but still want to be covered for damage to someone else’s vehicle, third party property insurance might be your best bet.
What’s covered by your insurance policy?
Insurance policies can get confusing. It’s not uncommon for people to make a claim only to find out they weren’t fully covered. This is why it’s important to carefully read your policy documents to make yourself aware of what is and isn’t covered.
Age of the driver
Your age heavily influences car insurance quotes. Unfortunately, for those of you in your twenties, you can expect to get a higher rate than a mature driver. Why’s this? It‘s all about experience. Younger drivers are less experienced behind the wheel than older drivers and are therefore seen as riskier to insure.
Do you want roadside assistance?
Roadside assistance is an additional option that you can add to your comprehensive insurance cover. This will, of course, increase the rate of the car insurances quotes you’re looking at. If you have this cover, your insurer will send someone to help you if your car won’t start or it stops because of a mechanical or electrical failure.
How often do you drive?
You may get a discount on several car insurance quotes if you don’t use your car often. If this is you, it’s well worth exploring your options.
What suburb do you live in?
You may be surprised, but where you live does dictate what car insurance quotes you’re offered. Each insurer has its own set of ‘risk suburbs’ where there’s higher rates of theft and/or damage potential. So, make sure you do some background research into your area!
If you’re exploring your options and comparing different car insurance quotes, it’s best to do your research. There are many insurers offering different prices and coverage. The points made above should give you a good understanding of what type of car insurance you want to go for. You will also need to compare different insurers to figure out which is best for you and your circumstances.
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