Are You Using the Right Car Insurance?

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There’s nothing better than hitting the road and getting out for a drive to take your mind off things. However, it’s important that when you get behind the wheel, you have the proper safety net. Car insurance is important with some governments legally requiring drivers to have even a basic protection plan before getting behind the wheel. Depending on how often you drive and how many cars your household is, there are a variety of coverage options to consider. Here’s what to keep in mind when looking for the insurance plan that’s right for you.

Auto Insurance Requirements

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While all car insurance coverage may not be the same, it’s important to recognize the rules of the road where you drive and how that relates to your policy. Compulsory third-party insurance, or CTP, is the minimum insurance required to drive in Australia. Also known as green slip, this minimum compulsory policy covers the cost of e compensation in the event you are involved in a car accident and injure or kill someone.

Acquiring CTP varies on the state you live in. Some states in Australia include green slip insurance as part of the cost of the automobile’s registration. Other states have you purchase it separately from a car insurance company, giving a motorist more options. This must be purchased prior to registering the vehicle.

Expanding Your Coverage

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While compulsory third-party insurance gives you something of a safety cushion, there are more insurance options to afford you different levels of protection while driving. For example, comprehensive insurance can help you cover the cost of repairs to your car in the event of accidental or malicious damage. It also protects you in the event of a claim linked to theft, fire, and hail. Some policies for a certain car insurance premium will also cover certain items in the vehicle, such as a car seat if it’s damaged in a collision.

Beyond minimum coverage, you can also invest in third-party property insurance. This type of auto insurance coverage will cover the costs of the damages to another car involved in a car accident, but not your own. This is to keep you from sinking into debt in an at-fault crash. There’s also third-party fire and theft car insurance, which is more expansive, but a wider-ranging safety net. This will cover damage to other people’s property caused by your car, and the damage to your own vehicle as relates to fire or theft. Depending on the auto insurance provider, third-party fire and theft coverage can account for damage caused by an uninsured driver, emergency accommodation costs, and certain contents of your vehicle.

Discounts and Rate Reductions

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Your car insurance rate is impacted by many factors, ranging from the number of vehicles on a policy, the amount of auto coverage to even the credit history of the drivers on the plan. Most insurance companies will offer up a free car insurance quote to give you an idea of average rates and premiums based on your desired liability coverage. If your insurance company provides other lines of insurance coverage, you may consider opting for bundling plans together at a lower premium than having separate policies.

A clean driving record can also lead to discounts for your car insurance premium, with some auto insurers rewarding drivers for not filing claims. The age of a driver can also impact average rates, with insurance companies viewing younger, inexperienced drivers as a greater risk. This also impacts older motorists who may not be as apt behind the wheel as they once were. However, discounts are available after taking defensive driving courses or, in the case of students, discounts for getting good grades in the classroom.

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