When it comes to car insurance, it can feel like there’s a lot to get your head around. If you’re trying to decide what level of cover is right for you, here are a few things to keep in mind.
If your car is registered, you already have compulsory third party insurance (also known as CTP, or green slip insurance). It covers you against compensation claims if you hurt someone in an accident.
But CTP will not cover you for loss or damage to your car, or someone else’s. Before you hit the road, you may want to consider additional insurance to cover any property damage caused by an accident.
If you take out third party property damage insurance this will protect you financially if you damage someone else’s car and are asked to foot the bill. Third party property, fire and theft provides the same cover as third party property damage, with extra protection against loss or damage to your vehicle due to fire and theft.
But if you’re looking to insure your own car against more of life’s perils, you need what’s called comprehensive car insurance. What does it actually cover you for, and why is it worth considering? Here are its five key benefits:
1. It covers you for loss or damage to your vehicle
The biggest difference between third party insurance and comprehensive insurance is how your own car is covered.
Third party insurance covers you for damage to other people’s vehicles, should you become involved in an accident and are deemed at fault. Comprehensive insurance not only covers you for damage to other people’s vehicles - but covers your own car as well. If your vehicle is stolen or damaged in an accident, even if you’re at fault, comprehensive cover has your back. It’s a good idea to think about how you’d fare if you suddenly found yourself without a car. Would you be able to get to work without it? Would you be able to afford to buy a new car straight away? If either answer is no, comprehensive cover might be a better fit for you.
2. You can tailor your cover
If your car is involved in an accident, you may not be able to drive it while it’s being repaired or replaced. But your comprehensive insurance provider may be able to cover the cost of car rental to keep you moving in the interim.
Some insurers will cover the cost of car hire for up to 14 days if your car is stolen, and indefinitely if you’re involved in a no-fault accident. Comprehensive insurance can also cover the cost of emergency transport and accommodation, if required.
Again, the decision here comes down to how you could manage day-to-day life if you had to go without a car. If you live somewhere without reliable public transport, for instance, that car hire could be a lifesaver.
3. You can get new-for-old replacement
If you bought a brand new car within the past couple of years, some insurers offer new-for-old replacement if your car is a write-off.
Some insurers will even take care of the registration and CTP on your new car if you meet certain criteria. This can make comprehensive cover a smart option for those who have bought a new car recently.
4. You’re covered for fire, theft, storm damage and floods
Another benefit of comprehensive cover is that it doesn’t only cover you for road accidents.
It also insures your car against a range of other situations, including theft, fire, flood and storm damage (think: hailstones through the windshield). If your car is caught in severe weather, you won’t have to stress about it.
5. All the little things
We’ve summarised the big benefits of comprehensive cover. But it can help with a lot of smaller things too. Your insurer may provide a guarantee on authorised repairs, for example, and may cover you for some or all of these, up to certain limits:
- If your car needs to be towed following an accident. - If your keys or remote are stolen. - Theft or damage to personal effects in your car.
These are things you might not normally think about, but it can be great cover to have if something does go wrong. And to make things feel more rewarding, taking out insurance also means you can access benefits such as earning Qantas Points simply by paying your premiums.
Find out more about Qantas Car Insurance.
Originally produced content by Guardian Labs Australia to a brief agreed with and paid for by Qantas. Disclaimer: Qantas Car Insurance is issued by Auto & General Insurance Company Limited ACN 111 586 353 and is arranged by Qantas Airways Limited (Qantas), Authorised Representative (AR No 261363) of Auto & General Services Pty Ltd AFSL 241411, Level 13, Toowong Tower 9, Sherwood Road, Toowong, QLD, 4066, Australia, from whom Qantas receives a commission. Because we don't know your financial needs we can't advise you whether this insurance will suit you. Please refer to the Product Disclosure Statement (PDS), Target Market Determination (TMD) and Financial Services Guide (FSG) for full details. Underwriting criteria applies.
