When it comes to buying car insurance, there is no single best solution for everyone. People use their cars differently: some might only drive from time to time, whilst others commute to work every single day. When choosing the type of car insurance to get, you shouldn’t only take price into consideration. You should also assess your driving habits, and decide which one is best suited according to that. We’ve highlighted the types of car insurance that exist so you have a better idea of which ones will best benefit your needs.

Compulsory Third Party Insurance (CTP)

Compulsory Third Party Insurance is mandatory in Queensland and it is illegal to drive your car without it. CTP covers you if you injure another driver or pedestrian, meaning the insurance company will pay compensation owed to the injured person. CTP is part of registration in Queensland, so if you register your car, you will be covered.

Third-Party Only Car Insurance

This is also known as liability insurance. It’s the cover most of us will choose, and it simply means that you’re responsible for any damage or injury caused to other people and vehicles in the event of an accident. Third-party car insurance doesn’t include damage to your own vehicle, or your own injuries. It’s only meant to cover damage and injuries that you might cause to others. If you have third-party car insurance, you can’t claim for any repairs that are needed to your car. If you have a vehicle that has accumulated a lot of kilometres and you don’t place a lot of value on it, then this type of insurance is best for you. This is usually the entry-level insurance for many Australians because it provides protection for other road users against losses arising from injury, death or property damage caused by your vehicle.

Third-Party Fire and Theft

This type of car insurance includes third-party fire and theft. So, if your car gets stolen, or is ruined by fire, you will be covered. However, you’ll only be covered if the fire or theft was caused by a third party, and not you! Third-party fire and theft can be expensive to cover if your car is brand new. This type of insurance protects you against the theft of your vehicle or damage from a fire caused by someone else.

Comprehensive Car Insurance

Comprehensive car insurance covers any possible damage to your vehicle, including the repairs and any financial losses that might result from an accident. You can buy comprehensive cover for a period of time, or as an ongoing policy that you pay for each year. If your car is stolen or you get into a minor accident, you will have to take your car to a garage, and you’ll need to find the money to pay for them. With comprehensive car insurance, however, this is all covered by the insurance company. If you have this type of insurance, then repairs and financial losses are automatically covered by the policy.

So there you go! Here are the different types of insurance that you can get for your motor vehicle. Remember that you should conduct some thorough research before making a decision on which one is best for you.