Drive with confidence

Buying a car is exciting. Many people spend weeks test driving different models to find a vehicle that suits their budget, lifestyle and personality.

You should also think hard about car insurance. The type of cover you take out will affect the overall and ongoing cost of your vehicle. Always shop around for insurance before you go to the car yard.

In addition, there are a number of things young drivers need to consider.

• Types of car insurance
• What type of car insurance do I need?
• How to choose a car insurance policy
• Be honest with your car insurer
• Making a claim on your car insurance

Types of car insurance

**CTPL stands for Comprehensive Third Party Liability. This insurance is a government requirement for registration of all vehicles. bIt covers death and injury to people if you are involved in an accident. Each state and territory has different rules relating to this type of cover. Go to your state or territory traffic/transport authority for information on CTP car insurance. These are listed in the ‘related links’ at the end of this page.

Additional types of car insurance include:

• Third party property insurance – covers damage to other people’s property (e.g. their car or home) and your own legal costs.
• Third party, fire and theft insurance – covers damage to other people’s property, and provides limited cover for damage to your own car caused by theft or fire.
• Comprehensive insurance – covers damage to your own car and other people’s property if your car is in an accident (including fire) as well as theft.

Need help to factor in the ongoing costs associated with buying a car?

Some third party property policies include an ‘uninsured motorist extension’ that covers you if your car is damaged in accident and you’re not at fault.

Car insurance for people on low incomes

If you are on a low income or your car is not worth much, it’s still worth insuring if you don’t have the money to replace it. Good Shepherd Microfinance has worked with insurance companies to create affordable and simple insurance policies for cars worth up to $5,000. These policies have flexible payments options and premiums can even be deducted from some Centrelink benefits. Find out more about the Good Insurance program on the Good Shepherd Microfinance website.

Add-on insurance

Some car dealers may offer you add-on insurance or insurance extras to add onto your car loan. Some of this insurance is not very good value and you may already have some of this cover. Find out more about the insurance extras sold by car dealers.