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Your Guide To Buying Car Insurance

28 Feb 2022

If you’re the proud owner of an automobile, then you’re going to need to tackle the task of buying car insurance – but what should shoppers watch out for?

Your-Guide-To-Buying-Car-Insurance

By definition, the concept of insurance is an arrangement by which a company undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium. Sounds serious, right?

Well, insurance is serious business, and can be all that stands between you and potential disaster. Insurance comes in all shapes and sizes to cover a wide range of life events and major purchases, such as home and contents, health, public liability, and of course, cars. As these are often everyday occurrences that affect just about every one of us, the insurance industry is full of providers which all have their own unique points of difference – or at least proclaim to. 

How To Choose The Right Type Of Car Insurance 

In the world of car insurance, there are four types of car insurance that consumers get to choose from: Comprehensive, Third Party Fire and Theft, Third Party Property Damage and Compulsory Third Party Insurance (CTP). 

Comprehensive Car Insurance – Although the most “comprehensive” of all car insurance formats, it’s also the most expensive. For those seeking peace of mind, it covers repairs to your car and repairs to other cars, even in the event that an accident is your fault. It also protects you if your car is stolen, or is damaged by fire, a flood, or even vandalism. 

Compulsory Third Party Insurance – Otherwise known as CTP, this is the most basic form of car insurance and provides cover against claims for compensation in the event that you injure or kill someone on the road. It’s actually included in your registration in Queensland. In our state, it’s offered by a number of insurers so it pays to shop around.

Third Party Property Insurance – While CTP insurance doesn’t cover any potential damage you may inflict on someone else’s car or property, if you’re at fault in an accident, third party property insurance will protect you through covering the associated costs. As the second cheapest car insurance after CTP, it helps drivers to have the best of both worlds. 

Third Party Property, Fire and Theft Insurance – This form of car insurance covers you if your car is stolen or burnt. While certainly viewed as a step up from third party property, it’s cover isn’t as broad as comprehensive insurance. However, it doesn’t protect you if you happen to have an accident and damage someone else’s car. 

When selecting a car insurance policy, make sure you pay careful attention to things like the excess charged by the insurer, monthly or annual payment plans, exclusions, any no claims bonuses, contents cover, and roadside assist. While the age and location of your car can also determine the price of car insurance, for drivers with comprehensive or fire and theft policies, the amount your insurer will pay if you write off your car depends on your agreed value or market value.

In addition, the Australian Securities and Investments Commission advises that there are plenty of ways to save on car insurance premiums. These include driving safely and keeping a spotless record, as well as having a vehicle that’s safe and secure. Remember that insurance providers are ultimately run as businesses – and brands of this size not only want to attract new customers, but to retain their existing ones as well. Ask for that discount, as the worst case scenario will see you no worse off. 

While all offer different terms and conditions, determining the right car insurance fit for yourself is subject to a wide variety of factors – many of which fall under the dreaded fine print section of an insurance policy. Whatever the case, be sure to do your research before you make the commitment. 

How To Save Money On Your Monthly Bills

Kyco is a member based buying group that ultimately aims to save Australians money on their energy, health and insurance bills. The more members we have, the more negotiating power we have to arrange low, long-term deals with service providers.