Is Car Insurance Mandatory in Australia?
The majority of the states in Australia, require you to have third party insurance (CTP). This is simply to make sure that you are covered in case you are in a car accident. Since accidents and collisions are unpredictable, it is better to have more than one insurance cover. Apart from having a Third party insurance Melbourne policy, it is recommended to opt for other insurance policies.
These third-party insurance policies are not necessary, but if you want to protect your car as well as the property of others in case of a collision, you better be insured. If you are not insured, you may have to pay a lot of money to cover the damages caused. Once you are insured, the Third Party Property Damage Insurance Agent will take care of it.
If you are not still convinced yet, here are a few points that you must consider:
It is normal to opt for a car loan, but when you opt for a car loan, the lender will insist you get an insurance cover for your car to make sure that no damages are caused to the car while you are still paying off the loan.
Inexperienced drivers are a lot more involved in accidents and collisions than experienced ones. If you have just learned driving, you should not take your car out for a ride without insuring it.
Collisions cause a lot of damage to others' properties. If you do not have an insurance policy in place, you will have to pay a hefty sum for the damages caused. The matter can become huge and cause a lot of financial problems for you. Instead of going that route, it is better to opt for the safer way - Third Party Property Damage Insurance Services.
If you think the CTP is enough to cover your car. You are wrong. There are several cases when CTP will not be enough. For example, if you are hit by an uninsured driver, CTP will not cover it. You cannot claim if your car was damaged in a natural disaster or someone wrecked your car.
Consider these above points in mind when you buy a new car.
What kind of insurance should you opt for?
Well, apart from CTP, there are three major types of insurance that you need to take a look at.
Third-party fire and theft (TPFT)
This policy covers any damages that are caused to your cat due to fire or robbery.
Third-party property damage (TPPD)
This is the kind of policy that will cover you if you damage someone else's property or even pets while driving.
Instead of opting for two separate insurance policies, it is best to opt for a comprehensive policy because it covers all the events like fire, vandalism, hit and run, and even natural disasters.
In some states, your car gets the CTP insurance automatically, but a few others like the QLD, NSW, and ACT do not offer this automatic option. If you are living in one of these states, you will have to get the insurance policy separately once you purchase the car.