Introduction:
Car insurance is an essential financial product that provides protection against the financial loss that can result from car accidents, theft, and other damages to your car. In Australia, car insurance is mandatory, and it is essential to understand the different types of car insurance policies available before purchasing one. In this article, we will discuss what you need to know before buying car insurance in Australia.Types of Car Insurance
There are three types of car insurance policies available in Australia: comprehensive, third-party, fire and theft, and third-party only. Let us discuss each type in detail:Comprehensive Car Insurance
Comprehensive car insurance is the most extensive and expensive type of car insurance policy available in Australia. It provides protection against accidental damage to your car, theft, fire, and other incidents that can cause damage to your car. Comprehensive car insurance also covers third-party liability, which means that if you are responsible for an accident that causes damage to another person's car or property, your insurance will cover the cost of repairing or replacing the damaged property. Comprehensive car insurance policies usually come with a range of additional benefits, such as roadside assistance, windscreen replacement, and a rental car if your car is stolen or damaged. However, these additional benefits can increase the cost of your policy.Third-Party, Fire and Theft Car Insurance
Third-party, fire and theft car insurance provides protection against accidental damage to another person's car or property, as well as theft and fire damage to your car. This type of policy is less expensive than comprehensive car insurance but provides less coverage.Third-Party Only Car Insurance
Third-party only car insurance provides protection against accidental damage to another person's car or property, but it does not cover damage to your car. This type of policy is the least expensive but provides the least coverage. Third-party only car insurance policies are suitable for people who own older or less expensive cars that are not worth insuring comprehensively. However, if you are involved in an accident that is your fault, you will have to pay for the repairs to your car yourself.Factors That Affect Car Insurance Premiums
Several factors can affect the cost of your car insurance premiums, including:Age and Gender
Younger drivers and male drivers are generally considered to be higher risk than older drivers and female drivers, which means that their insurance premiums are usually higher.Fesco Bill