Australian Cheap Third Party Car Insurance Guide

How to Get The Cheapest Third Party Car Insurance

australian third party car insurance guideThe range of car insurance options can be a little confusing, but one of the common types of insurance that people opt for is third party car insurance.

Three types of 3rd party car insurance available:

Compulsory Third Party Car Insurance: This is the minimum insurance requirement and you actually pay this when you renew you car registration. This insurance covers you for injury caused to other people when you are at fault in a vehicle accident. It is for this reason that you are required by law to be driving a registered vehicle.

Just imagine if no road user had to have cover for personal injury – it would be a crazy situation where people would be liable for their own medical costs even when it was not their fault they got injured in an accident!

An important thing to note about the compulsory insurance is that it covers other road users and passengers in your vehicle, but it does not cover you for expenses that arise as a result of injury to yourself.

Third party property motor vehicle insurance: When you are at fault in a vehicle accident and you cause damage to someone else’s property, third party property cover will offset the expenses associated with the damage you cause.

When you think about it, there are a range of things that you can damage in an accident ranging from other vehicles, cyclist’s bikes, motorbikes, trailers, motor homes or even fences of homes and homes themselves if you are unfortunate to crash into one!

Third party fire and theft cover: In addition to the cover mentioned immediately above, this additional form of insurance will provide cover for expenses incurred as a result of fire or theft of your motor vehicle.

The other form of insurance provided is known as comprehensive car insurance, and it provides all of the above and more. I have written an extensive article on the cover itself that is very worthwhile checking out.

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What type of insurance should you get?

Obviously it is up to you to decide which insurance is best, and hopefully this website helps you in making that decision, but what you ultimately need to consider is what are the benefits and potential negatives of the type of insurance you take out.

Key considerations:

Value of your vehicle: Quite often, people that have a vehicle that is not worth a huge amount of money (around $5000 for example), will not bother with taking out comprehensive insurance because the actual value of their own vehicle will soon be surpassed by the total amount paid in monthly premiums.

However, third party insurance, to cover the damages caused by you in an accident to someone else’s property is something that is definitely worth consideration.

Check the fine print: There are actually some third party property insurers that will provide you will a small amount of cover in the instance that you are not at fault in an accident and the driver of the vehicle at fault is not insured. This will commonly be around the $3000 mark which may well cover the entirety of damage to your car in any given motor vehicle accident that takes place.

Other insurance: You will often find other little types of cover available, such as Gap Insurance which will cover the difference between what you have paid off on a car loan and the value of your car if it is written off. Another form of insurance that some people opt for are more specialized cover for unique cars. Shannon’s is renowned as a leader in this space in Australia.

How to get cheap third party car insurance:

First of all, simply getting the cheapest third party car insurance is not necessarily going to mean that it is the best policy for you. You really do need to look into detail about what is included and excluded from the policies that you are comparing. Take time to look around at websites that feature information on this type of cover. One recommended resource is www.thirdpartycarinsuranceaustralia.com.

If you are looking for a cheap deal though, some of the types of things you can do include:

Putting the policy in the name of a female driver and listing any male drivers as additional drivers. Women are statistically less prone to car accidents and receive ‘discounted’ insurance as a result.

Place the policy in the name of a driver over the age of 25 years old. I mention this with a disclaimer, because on the one hand, you will ultimately pay less for your premium for someone over the age of 25 years but on the other hand, delaying listing a policy in a young drivers name will result in them not being able to build a ‘No Claims’ record.

Have a solid record: As alluded to above, a No Claims record (a history of not making insurance claims for an extended period of time), will generally allow you to get the best deal on car insurance in Australia.

It is for this reason that some parents will not continue to list a young driver on their policy, but rather take out a policy in that young drivers name from early on – it allows that young driver to (hopefully) compile a solid record of making no insurance claims.

Taking out an insurance policy is obviously a very important decision. You should give considerable thought to benefits of opting for comprehensive cover or going with the cheaper third party car insurance alternative and make a decision that you feel best serves your needs and financial situation.

Article written by Damian Roberton