Learning about policies, costs, and eligibility can be difficult for new drivers. Make sure you understand the basics of different types of car insurance and which you need to drive legally and with the proper level of financial protection.
Four Types of Car Insurance for Private Vehicles
As a private driver (or one who isn’t driving for a business), there are four types of car insurance you should know about, including:
- Compulsory Third-Party Insurance
Also known as CTP, this type of insurance is required in every state and territory. It covers the cost of any personal injury you may cause to someone in a car accident. It’s important to know that this is not a replacement for a motor policy. It does not cover damaged property or vehicles.
- Comprehensive Insurance
This type of insurance is also important and is the highest level of car insurance cover. Comprehensive will cover damage to your vehicle as well as damage to property. Some policies may also cover other items like theft and legal fees. Make sure you know what’s covered before you begin driving.
- Third-Party Property Insurance
This type of insurance covers any damage that is done to someone else’s property as a result of an accident that you caused. It also covers related legal fees, but will not provide compensation for damage done to your vehicle or your property. It also does not cover theft of your vehicle or hail or fire damage to your vehicle.
- Third-Party Fire and Theft Insurance
This type of insurance includes add-on items that provide additional coverage in case of fire and theft.
Carew Lawyers are available to help you get compensation after a car accident. Contact us today to discuss your case and learn more about what is covered and how much compensation you should expect for your accident.