In all states, all cars must be registered and have a form of insurance. Regardless of whether some insurance is not compulsory in a given state, it would be better to have additional coverage on top of your car insurance.
Driving anywhere in Australia requires you to have insurance or else you would be marked as an illegal driver. With numerous Australian companies being offering different car insurance quotes, you do not have much of an excuse for not owning one.
As a driver, a third party property damage insurance policy is necessary. By purchasing it, the policy protects you against the claims of another individual. It also offers coverage against any claims of damages and losses incurred by another driver who is not insured. In this case, the driver who has caused the accident is the third party.
This insurance is a type of liability insurance bought by a first party (insured person) from an insurer (second party) for protection against claims of another person (third party). Usually, the first party is responsible for their losses and damages regardless of the leading cause of the injuries.
In the vehicle third party liability coverage, there are two types. The bodily injury liability which covers the costs that come after a person is injured, e.g. hospital care, pain, suffering and, lost wages. The second type is the property damage liability which covers the loss or damage of property, e.g. payment to replace mailboxes and landscaping and compensation of destruction of any structure.
All Australian drivers are required by the law to have at least an amount of bodily injury liability and property damage liability coverage. Even as no-fault states were established to eliminate ordinary injury lawsuits that had low-dollar price tags, liability coverage is still legal and crucial.