Let’s talk car insurance. Whether you are buying your first car, you’re looking to purchase another car, or it is simply renewal time, there are a few things you need to think about. When it comes to owning a car, it is compulsory that you have green slip insurance on your car. However you also need to consider whether you are going to have a fully comprehensive insurance policy or if you are going to choose just a third party insurance policy. But what is the difference between them? Let’s take a look below.
What is comprehensive car insurance?
A comprehensive car insurance policy is a policy that covers the most extensive list of things that may happen on the road, to both your car and to any other cars that are involved. This type of insurance policy however covers more than just accidents that may take place on the road. It can cover all sorts of damage that happens due to different situations such as theft, damage from weather events and your car catching on fire.
If you are in an accident and cause damage to another person’s car or property, your comprehensive policy will also cover the costs for the damage to be fixed.
On top of this, a comprehensive car insurance policy may also cover additional things such as towing costs, belongings that you have in the car when it is damaged (such as phones, laptops and car seats) and also emergency costs of using a hire car.
What is third party car insurance?
Third party car insurance is a policy that covers a lot less than a comprehensive cover. Third party means that it will only cover the damage that happens to someone else’s car or property. So if your car is stolen or damaged due to weather conditions, you are not able to claim on your insurance. If you are in an accident with another car and you are at fault, your insurance will only cover the repairs to the other car – not to yours.
You also are not eligible to make any claims on needing a tow truck, a hire car or your belongings that were damaged whilst inside the car.
Which is the best option to choose?
It does come down to personal preference as to which policy to take out.
Many people who take out third party car insurance do so as it is a cheaper option than comprehensive. If their own car does not have a high value, it may seem like the better option to simply pay for the third party to cover damages to other cars or property.
Comprehensive insurance is the best option to take out if you want to ensure that the most types of scenarios are covered. It means that you are safe and covered if anything was to happen to your car and also to any cars or property that you damage from your car.
Before deciding which option to go through, look at all your options. Get a valuation on your car and determine what your excess payments will be if you need to make a claim. This will help you to determine whether comprehensive insurance is a viable option for you or whether you should stick with third-party coverage.
Whichever way you go, it is important that you do choose an insurance policy. Damage to someone else’s car or property can end up costing you a lot of money if you are not covered.
We at Northside Automotive provide the best car services including brake service, tires, wheel alignment, transmissions, and oil changes in North Brisbane.