Car Insurance

How to find the right car insurance and save hundreds or even thousands on the premium. There are a number of different types of car insurance. The most basic is compulsory third party (CTP or �green slip� insurance), which provides essential cover in case you injure someone while driving. It�s required throughout Australia when you register your car. If your car is fairly old and not worth much you may think taking out CTP is enough. However, it won�t cover you for damage you may cause to other people�s property � so make sure you don't run into a Rolls. Your options are: Third party property: This is the least expensive option. It covers you for the damage you may cause to another car and usually includes limited cover

for damage caused to your car by an uninsured driver. Third-party property, fire and theft: This also covers you if your car is stolen or burnt. Comprehensive car insurance: This is the best cover option but also the most expensive. It includes the cost of crash repairs or replacing your car, even if you�re at fault. Ways to reduce your premium You can easily save hundreds of dollars by shopping around for your car insurance. Our latest report shows average differences between the most expensive and cheapest policies in all states of around $300 for claim-free adult drivers; over $650 if you�ve made a claim; more than $1300 for a family with a young driver; and up to more than $1700 for a young driver alone. Other than shopping around, there are ways to save on the premium: Choose a higher excess for a reduced premium. A no-claim bonus (NCB) can get you a discount of up to 70%. You need up to six claim-free years to be entitled to the maximum NCB. Nominating drivers or restricting the use of your car to drivers over a certain age (usually 25). Discounts - for example if you have another policy with the same company, you're a long-term customer or if your car has an immobiliser. Tip: Save on CTP in NSW & QLD In all states but NSW and Queensland, compulsory third-party insurance is provided by only one state-owned or government-licensed insurer. In NSW and Queensland it�s offered by a number of insurers and it pays to shop around, as quotes can vary (we found differences of up to $200 in NSW). For a price guide for NSW go to www.maa.nsw.gov.au or phone 1300 137 600. For contact details for the insurers in Queensland go to www.maic.qld.gov.au or phone 1300 302 568. Know what's covered and what's not All the policies we looked at in our latest report offer good comprehensive cover for accidents, theft, natural events (such as flood or hail), malicious damage and vandalism. Most policies also offer some extra features. It's also vital to check your policy for exclusions and conditions. If you have an accident You'll need to let the insurance company know immediately. You might also be required to contact the police. Most insurers leave your no-claim bonus intact if they agree you're not at fault, provided you can identify the person responsible. An unsatisfactory outcome? If you�re not happy with the outcome of a claim, the first step is to complain to the insurance company. If it can�t be resolved that way, contact the General Insurance Enquiries and Complaints Scheme (IEC) on 1300 780 808 or check its website.