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Do you need car insurance?

If your car is roadworthy and registered, then you already have compulsory third party (CTP) car insurance. This covers the cost of compensation claims if anyone driving your car injures someone else in an accident. But CTP insurance doesn’t cover damage to your own, or someone else’s car. So unless you want to fork out to repair someone else’s Porsche, or be left without a car if yours is written off in an accident, then taking out insurance on top of that is a good idea.

What car insurance do you need?

• Compulsory third party (CTP): Covers compensation to people injured in an accident you caused. No cover for your own or other people’s property and cars.
• Third party property: Covers other people’s cars and property damage.
• Third party fire and theft: Covers other people’s cars and property damage. Cover for your car for theft or fire damage.
• Comprehensive: Covers other people’s cars and property damage. Cover for your car for theft, fire, natural disasters, vandalism and accidents, even if you’re at fault.

How much is car insurance?

The cost of comprehensive car insurance depends on factors such as your driving record, your vehicle and where you live. The policy with the cheapest average premium is $795 in Tasmania, while the policy with the most expensive average premium is $3,065 in Victoria.

How to save money on car insurance?

Shopping around is the most effective way to save on car insurance. Not only do premiums vary widely between insurers, they also vary between new and old customers. We call it the loyalty penalty: the insurers cash in on consumers who renew their policies without shopping around. So even if you have stayed with your insurers for years and years and are promised high loyalty discounts, you should shop around when your insurance is up for renewal to see if there are any better deals out there. In all states, average premiums for the most expensive policy are more than double the average premiums for the cheapest, so there are a lot of savings to be found.