Some Car Insurance Coverage May Not Be Comprehensive
In Australia the law requires Compulsory Third Party (CTP) automobile insurance, which covers personal injury claims filed by other parties in an accident. CTP insurance does not cover personal property damage, nor does it cover driver injuries if the driver is responsible for the damages. CTP insurance is usually included in the vehicle registration expense, which means the car cannot be registered until the insurance coverage is paid.
CTP is considered minimum coverage by anyone standards, so additional insurance should be part of any car coverage, especially if the car is new. Most lending institutions require comprehensive car insurance, which can include a long list of clauses that protect the policyholder from financial disaster.
Third party property and theft coverage always makes sense, especially when an accident is the policyholders fault. Damage to other people's property can be stressful, as well as expensive, so a third party policy helps eliminate some of the mental and financial burdens that develop from an unexpected accident.
Comprehensive Insurance Coverage Varies From Company to Company
CTP and third party property and theft coverage are important, but most people need additional coverage in order to feel protected on the crowded Australian roads. Comprehensive coverage varies from company to company, but most of them offer the same basic package. The basic elements included in most comprehensive policies are:
In Australia the law requires Compulsory Third Party (CTP) automobile insurance, which covers personal injury claims filed by other parties in an accident. CTP insurance does not cover personal property damage, nor does it cover driver injuries if the driver is responsible for the damages. CTP insurance is usually included in the vehicle registration expense, which means the car cannot be registered until the insurance coverage is paid.
CTP is considered minimum coverage by anyone standards, so additional insurance should be part of any car coverage, especially if the car is new. Most lending institutions require comprehensive car insurance, which can include a long list of clauses that protect the policyholder from financial disaster.
Third party property and theft coverage always makes sense, especially when an accident is the policyholders fault. Damage to other people's property can be stressful, as well as expensive, so a third party policy helps eliminate some of the mental and financial burdens that develop from an unexpected accident.
Comprehensive Insurance Coverage Varies From Company to Company
CTP and third party property and theft coverage are important, but most people need additional coverage in order to feel protected on the crowded Australian roads. Comprehensive coverage varies from company to company, but most of them offer the same basic package. The basic elements included in most comprehensive policies are:
- Coverage for accidental loss and theft. The amount of coverage is based on premium payments.
- Cost for legal expenses and costs up to the amount stipulated in the policy.
- Emergency accommodations costs are covered with certain restrictions are included, but only some policies have this clause.
- Emergency repairs are covered up to $500 on some policies, and $250 on other policies.
- Car hire for up to 14 days is usually included ($75 per day) in comprehensive policies.
- Legal liability coverage for substitute vehicles is also part of a comprehensive plan.
- The market value or the agreed value of the automobile is part of the coverage.
- Personal effects and clothing loss is covered up to a $1000 on some policies, and $500 on others.
- Up to $20 million in third party liability and legal costs is usually part of a comprehensive plan.
- $500 to $1000 of trailer or caravan coverage is included when they are attached to the insured vehicle.
- Transportation costs up to $400 are included if the vehicle cannot be driven home after an accident. Those costs are also paid if there is malicious damage or the car is stolen.
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