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Car Insurance - the different options

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  • Ivan
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Car Insurance - the different options
« on: 25,January,2009 »

There are several tiers of car insurance:

Tier 1
Mandatory third party insurance. (also known as a green slip)
This is the legal minimum requirement and will cover the person you may injure. It will not cover you, your car, the other persons car or their property.
Think of third party insurance 'only' as the very minimum cover you need to pay for the other peoples medical claims.

All cars registered in NSW have this insurance cover.
If you buy a car with registration, it will come with the balance of the third party insurance to the end of the registration period.
When you transfer the car (following the proper process), you will not need to renew this insurance.

If you are renewing the yearly registration, you can get a quote here for a 'green slip' :

Tier 2

Option (but recommended) third party property cover
This type of insurance will cover the damage you may cause to other peoples cars and property.
If you crash into another car or object, this cover will pay for the repairs to other peoples property.
If you don't have this cover, YOU will have to pay for their repairs!!!

Third party property insurance is not too expensive.
If you are over 25 and from another country, you can use eCar.
Click the banner below for a quote.
Note: you can cancel a 12 month contract @ any time and get the balance (rounded down to the nearest month), so work on the policy cost divided by 12 as your monthly cost.

Most drivers are only here for 3 months, so take the yearly premium and divide by 4 as your base figure.

Tier 3
Optional Third party fire and theft insurance.
Often not much more expensive and will cover you if your car is stolen or catches fire.
We have had reports though that fire and theft cover can be more than the cost of the car!!! So, get a quote with and without!

Tier 4
Optional comprehensive insurance
Often difficult or impossible to get for travellers, this will cover repairs to your car if you crash it.

All tiers:
Note: Most (all?) companies charge what is called an excess fee ... check what that is before agreeing to the policy.
The normal figure is usually between $300 and $400.
The excess fee is the amount the insurance company will expect YOU to contribute towards any claims.

« Last Edit: 25,March,2010 by Barb »

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