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When purchased, vehicles come with a risk of financial loss due to uncertainty. Car insurance has spread its wings to cope with the uncertain loss risk.
Car insurance is a mutual contract between the vehicle owner and a car insurance company. According to the agreement, you agree to pay premiums for protection against the vehicle’s financial loss.
Car insurance coverage always depends on what the state offers and what additional coverage options you choose. Car insurance can help you pay for vehicle repairs, medical expenses and rental fees of your car. An insured vehicle enables you to get paid the highest Car Removal Brisbane.
Different Types Of Car Insurance In Australia
There are four main categories of car insurance available to Australian users.
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COMPREHENSIVE CAR INSURANCE
It is an extensive and comprehensive car insurance policy available in Australia. Along with providing coverage to third-party property, it claims to cover any accidental damage to your car, no matter who is at fault.
The comprehensive policy covers theft, storm, fire damage or any other calamity. It takes care of all the costs associated with repairing the third-party vehicle and covers any minor or major damage to your automobile.
However, it doesn’t cover any damage caused to your vehicle while somebody unauthorized driving it.
WHAT’S COVERED?
- Damage to your vehicle, despite your fault
- Damage to third party vehicle, or property
- Damage caused by theft or fire
- Damage due to flood, storm or Hail
WHAT’S NOT COVERED?
- Third Part Injury
COMPULSORY THIRD-PARTY INSURANCE
This kind of insurance policy is recommended for every Australian car owner. Compulsory third-party insurance, or CPT, comes in different shapes and sizes depending on the state and territory you reside in.
It covers any financial compensation for any injuries or deaths caused to a third party in a motor vehicle accident by you. It generally provides coverage in the event of injury or death you cause to other people and doesn’t insure against the cost of repairs and damage to any vehicles or property.
WHAT’S COVERED?
- Cost of Injury or death caused by an accident
- Medical Expenses to treat injuries (for six months from an accident)
- Lost income payment
- Injury liability for other people driving your vehicle
WHAT’S NOT COVERED?
- Damage to your car
- Damage to third-party vehicle or property
- Medical expenses if you are charged with a driving offence related to the accident
THIRD PARTY FIRE & THEFT INSURANCE
This is the most basic level of car insurance policy that covers the cost of damage to the third-party vehicle or property in an accident. It also looks after your car in case any damage is caused by theft or fire.
This insurance policy covers any cost raised in case of theft of your vehicle or any damage caused in the theft process. However, the cost of personal injury is not covered by it.
WHAT’S COVERED?
- Damage to another vehicle or property
- Damage to your car by fire or theft
- Any cost incurred during the theft
WHAT’S NOT COVERED?
- Damage to your vehicle in an accident
- Damage due to storm, Hail or flood
- Third-Party Property Insurance
THIRD PART PROPERTY DAMAGE
This policy usually covers the cost associated with fixing or replacing another vehicle in an accident but not your automobile. It takes care of the cost of damages to the third-party vehicle or property but not your car, regardless of who is deemed at fault.
WHAT’S COVERED?
- Damage to third-party vehicle or property
WHAT’S NOT COVERED?
- Cost of repairing or replacing your vehicle
- Damaged caused by fire or theft
HOW IS CAR INSURANCE PRICED?
The car insurance company looks at different factors to analyze the coverage that can be offered. These factors include:
- Driving Record
- Located
- Coverage History
- Vehicle Details (make, model and year)
- Driving Habits
- Deductible Amount
HOW TO FILE A CAR INSURANCE CLAIM?
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CALL YOUR INSURANCE AGENT
The first step is to explain to the agent what happened and determine how much coverage your policy offers.
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GATHER REQUIRED INFORMATION
The next phase is to gather all the relevant information like police reports, photos, names and information of anyone involved in an accident. The insurer usually provides you with a list of mandatory documents to proceed with.
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FILE A CLAIM
Once all the required documentation is completed, submit it on the portal or any other channel your insurance company prefers.
IMPORTANCE OF CAR INSURANCE
Highlighting some of the main factors that portray the importance of car insurance.
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PROTECT YOURSELF & OTHERS
Road accidents are uncertain events that one must be prepared for beforehand. Car insurance covers any expenses incurred in case the vehicle has an accident. If a good insurer insures your car, the company manages the heavy expenditure of injury and repair to the vehicle rather than you.
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PROTECT YOUR VEHICLE
Car insurance covers any repair expense caused by an accident. The insurance company takes care of any severe or minor damage to your car. In the event of theft, fire, explosions and flood, the company ensures you don’t take a penny out of your pocket to restore the vehicle.
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COVERS THIRD PARTY DAMAGES
If your vehicle caused any accident to the third-party property or vehicle, then you are responsible for managing the expenses on behalf of the third party. However, if your policy covers third-party damage, it is remarkably beneficial to get saved from spending thousands of dollars.
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COVERS LEGAL COST
In some cases, the victims might sue you for the damage caused to their vehicle or property or any severe injury to the person. If you face the law, the car insurance company will protect you from bearing charges like legal fees. It is assumed that for any significant expense that may arise from a case filed against you for a road accident, the insurer covers it all.
