From CTP to Comprehensive

So you’ve just purchased your dream car. What next?

Your first step should be to take out relevant insurance policies on your motor. But, be sure to do your legwork before committing; not all insurance policies are created equal.

Australian drivers are required to have third party car insurance. Also known as CTP or the green slip, this covers against death or injury to other people if you’re involved in a road accident.

The rules governing CTP vary depending on the state or territory you’re in. Your cover might be included in your license registration fee or may only be available through certain insurance companies. Getting it right is vital; it’s illegal to drive a car that doesn’t have CTP insurance.

As CTP doesn’t cover against all eventualities, you should consider taking out additional policies, such as:

• Third party property insurance – covers against damage to other people’s cars or homes in the event of an accident, as well as any legal fees you incur
• Third party property, fire and theft insurance – covers damage to other people’s property, as well as some limited fire damage and theft cover for your own vehicle
• Comprehensive car insurance – covers damage to your own and other cars, including fire damage and theft.

You’re probably wondering how much all this will cost. While insuring your car can seem expensive, it’s cheaper than getting into an accident uninsured. What if you write your car off and can’t go to work? Or run into an expensive car and find yourself saddled with a repair bill for thousands?

You can find your cheapest car insurance option via online price comparison sites. They are an excellent source of both comprehensive and third party car insurance quotes.

There are ways to ensure a cheaper premium. Car insurance companies offer lower rates for drivers with good records, so driving safely is essential. Also add security devices to your car – the more precautions you take, the less you’ll pay.