What your car insurance policy covers will ultimately come down to what type of insurance you choose to buy. Knowing what’s included in your policy can help you make informed decisions and provide greater peace of mind when you’re on the road.
You can find out about the different types of car insurance in Australia and what they cover, as well as what isn’t covered by car insurance, right here with Savvy.
What your third party car insurance covers will depend on the type of policy you decide to purchase. These are:
Third party property damage (TPPD) insurance
Third party fire and theft (TPFT) insurance
Having third party car insurance can help protect you from potential financial burden in the event of an accident which damages someone else’s vehicle or property. However, it’s important to note that all coverage is subject to your insurer’s terms and conditions and your policy documents.
In contrast to third party car insurance, comprehensive policies can offer more covered events. These can include:
Because comprehensive insurance offers the most in the way of coverage, it’s generally the most expensive form of car insurance you can buy in Australia. Like third party insurance, however, all coverage offered by your policy is required to meet your insurer’s qualification requirements.
Compulsory third party (CTP) insurance, also known as Green Slip insurance in New South Wales, provides coverage for personal injury or death compensation caused to others in an accident where you’re deemed to be at fault. CTP insurance doesn’t cover damage to any vehicles or property. This insurance is mandatory across all states and territories, unlike the other types of cover.
It's important to check the specific details of CTP insurance in your jurisdiction to understand the extent of coverage provided and how to acquire it. In some states, CTP insurance is included as part of your vehicle registration fees and it is regulated by the respective state or territory authorities, while it may be offered by approved insurers in other places.
While car insurance provides valuable protection, certain situations and events typically aren’t covered by standard policies. These exclusions may vary depending on the insurance provider and policy terms, but common ones include:
It’s important to carefully review the terms and conditions of your car insurance policy to understand the specific exclusions that apply.
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Savvy’s comparison service includes selected products from a panel of trusted insurers and does not compare all products in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy. We always recommend readers to consult the Product Disclosure Statement (PDS) of different policies before purchasing your car insurance.