New buyers of a car are often confused for which insurance policy to opt for – whether they should opt for a third party car insurance, or comprehensive car insurance.
Having insurance is a must for all new vehicle registrations in Australia. Minimum coverage of third party car insurance is required that covers accidental damage to other vehicle or injury to the driver of other car. Extending it include protection for own car falls under comprehensive car insurance.
Comprehensive car insurance provides complete coverage, including:
- Damages to your own car
- Third party legal liability
- Protection against theft
- Coverage for personal accident
It can be further boosted by additional covers for engine protector, accessories cover, medical expenses, zero depreciation, etc. Due to its extensive coverage, the policy owners can rest without a worry haunting them for unexpected mishaps.
Also, it does not cover:
- Wear and tear due to aging of the vehicle
- Mechanical or electrical breakdown
- Damages caused by a driver on a wheel without valid driving license, or under influence of intoxicants
For vintage car owners, there is additional cover available – classic car insurance, for vehicles of more than 15 years since date of manufacture. Since these are high maintenance vehicles, this policy is extremely valuable. It covers the vehicle against accidental loss or damage and also provides for emergency repair, cover for personal items, storage costs, towing, traveler care, etc. The only condition is, these vintage cars should be used only for hobby or recreational purposes. These should not be employed for any commercial purposes.
With so many policies, and a hoard of insurance providers, it is very tedious to study each and every policy with its inclusions and exclusions. Selecting a perfect policy for your vehicle is even more daunting. However, once insurance is activated, the driver/ car owner can then enjoy the flexibility and ease of transport without any stress.