Compulsory Third Party
As the name suggests, this insurance is compulsory. It forms part of the cost of your vehicle registration and covers you, or anyone else, for death or injury if your car is involved in an accident. The insurance does not cover damage to vehicles, and it may not cover injuries you have sustained if they are a result of your negligent actions.
Third Party Property
This insurance covers you against damage caused to other cars and property. However,
it does not offer you any protection for your own car.
Third Party Property, Fire and Theft
Also known as ‘extended' third party property insurance, this insurance covers you against accidental damage to other cars, property, fire and theft. Unlike comprehensive insurance, however, it does not cover damage to your own vehicle. Some insurers provide special ‘uninsured motorists extension' within this insurance type. It pays to ask if your policy
will cover this scenario.
Comprehensive
This insurance offers the greatest protection. It covers damage to your car, other cars, property, fire and theft. If you have taken out a loan to buy a car, you may be required to purchase this type of insurance.Things to consider
Prior to agreeing to any insurance cover, consider the following:
- Is the insurance premium within your budget?
- What excess will you have to pay if you make a claim?
- What value will you be paid if your car is written off or stolen and never recovered?
- Does the policy cover everyone who may need to drive the car?
- Will the policy provide a loan or hire vehicle if repairs are needed?
- What is excluded from the cover?
- What is your driver rating, and are you eligible for a no-claim discount? (A ‘rating one' driver will enjoy the lowest premium, for example).
- Ask for information on ‘no fault' insurance cover as some policies may also cover a limited amount of collision damage to your car if the damage is the fault of an uninsured driver.
- If you alter or modify your vehicle after taking out your policy will your insurance premium increase?
Policy cancellation or claim refusal
Your insurance policy may be cancelled or your claim refused if:
- you are involved in an accident and you were under the influence of drugs or alcohol
- you were driving illegally
- you don't disclose in the ‘Duty of Disclosure' section things like:
- modifications to your car
- previous accidents
- prior convictions
- prior offences or
- personal disability.
NOTE:
If you disagree with a decision your insurance company makes and further negotiation proves unsuccessful, you can ask for an independent review of the decision by contacting the Insurance Ombudsman on 1300 780 808 or visit www.insuranceombudsman.com.au.
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Information on copyright for the Office of Consumer and Business Affairs website is provided on behalf of South Australia Central http://www.sacentral.sa.gov.au/site/page.cfm?u=60
Disclaimer
Information on the disclaimer for the Office of Consumer and Business Affairs website is provided on behalf of South Australia Central http://www.sacentral.sa.gov.au/site/page.cfm?u=61
Privacy
The South Australian Office of Consumer and Business Affairs (OCBA) is committed to protecting your privacy and the confidentiality of your personal information, consistent with the South Australian Government's Information Privacy Principles. If you would like to view the full privacy statement please visit: http://www.ocba.sa.gov.au/privacy.html
Webmaster
If you wish to provide feedback on the Office of Consumer and Business Affairs website please contact the Webmaster via email mailto:webmaster@agd.sa.gov.au
Accessibility
Information on accessibility for the Office of Consumer and Business Affairs website can be viewed at: http://www.ocba.sa.gov.au/accessibility.html


