Like all other countries, in Australia, all registered cars must have Compulsory Third Party (CTP) insurance or ‘Green Slip’ insurance as it is often called. CTP is a legal requirement in every state and territory. The Australian law mandates that all vehicles must have a valid insurance policy to ply legally on public roads.
CTP is there to protect you from financial liability should you cause a motor vehicle accident that results in injury to any other third party that may also include passengers travelling in your car, drivers and passengers in other vehicles, cyclists and pedestrians.
In addition, your car insurance also provides you a protective cover against financial loss for damages emerging from car accidents, theft, weather conditions and other unforeseen costs according to type of police taken by you.
Types of car insurance
Although with CTP being mandatory in Australia, you can feel safe yet it is prudent for you to have an additional car insurance to reduce your financial vulnerability if you get involved in an accident, even without your fault.
The common types of car insurance policies in Australia include:
- Compulsory Third Party i.e. CTP/ Mandatory Motor Vehicle Accident Personal Injuries insurance
- Comprehensive Insurance – that covers damage to your own vehicle and other people’s property. It also provides cover in case of theft, some other risks like fire or malicious damage and weather events as well as unforeseen conditions. It also includes legal costs
- Third Party Property – covers damage to other people’s property and legal costs, but not damage to your own vehicle
- Third Party Fire and Theft – to cover Third Party Property with some add-on features that cover your vehicle as well as additional fire and theft protection for your vehicle up to a specified limit.
Renewal of car insurance
Most insurers send you a renewal notice to remind you of insurance amount and renewal date well in advance so that you may renew your car insurance policy on time.
For renewing your car insurance, you may choose any one mode through your insurer, from the following options:
- Auto renew
- In Person
Before re-enlisting or paying renewal premium with your current insurer or while switching to some new insured, it would be beneficial for you to know and make car insurance renewal comparison to understand:
- What you’re paying for? – To understandwhat your current policy covers in order to get a proper comparison.
- The price – to have comparison at a price level to know what you are covered for and how much you are required to pay with your current insurer.
- No claims bonus – If you continue with same car insurer, you might be eligible for getting a discount on cover if you have not made any claim during the year.
- Other Special discounts – especially if you persist with your current insurer, most of customer caring insurers offer loyalty bonus
iSelect being a customer oriented car insurance company helps its customers by offering the best services and prices based on most comprehensive and transparent car insurance renewal comparison.