There are many car insurance companies in Australia. For the country with a small population like Australia, it is a bit bazaar that we have so many insurance providers and equally many policy options. Is it good? Well, at the first look - the strong competition and many alternatives should drive the market into lower prices and a better service. At the end, it is the competition which naturally selects the fittest (hmmm... the cheapest with the best service). In reality, the situation is a bit more complicated. Let us review what is important. There are two, the most important types of car insurances:
Both are important, but the compulsory third party car insurance is a must.
The compulsory third party car insurance covers personal injuries of crash victims.
In Australia, all registered cars must carry this insurance.
However, the compulsory third party car insurance does not cover material losses.
On the other hand, the property third party car insurance pays for any damages you cause to another vehicles (including other properties).
This policy is not compulsory but you do not want to sell your house to fix someone else's Lamborghini.
Unfortunately, the property third party car insurance does not cover the cost of repairs for your own vehicle.
Neither, it includes personal injuries (this is part of the compulsory policy).
Nevertheless, the property third party car insurance provides a peace of mind and protects against unforeseen financial losses.
This policy is popular among owners of very old and less valuable cars.
There is a number of reputable third party car insurance providers in Australia.
Big insurers often give you a better value for money, but they are expensive.
Smaller operators are cheaper.
But, they seem to be less concerned with the service quality.
On average you can save about 30% on the third party car insurance with the smaller insurers.
For middle-aged drivers this amounts to very little monetary value (about $90 a year).
Nevertheless, for the young drivers this can save a lot of money.
In some cases $400 can be saved by choosing the smaller insurance company.
The recommended third party car insurance providers are:
In Australia, it is illegal to drive without the compulsory third party car insurance.
However, it is not wise to drive without the property third party car insurance, either.
You may decide not to repair your car.
However, if you cause an accident, the cost to fix someone else's car can be excruciating.
It is not uncommon to loose house, in order to finance a repair of expensive vehicles.
So, how much does the third party car insurance cost?
The third party car insurance can cost anything between $200 to $500.
Surprisingly, the bigger car insurers are quite competitive with this type of insurance.
For example, AAMI charges $211, while the smaller NRMA (in ACT) requests $480 for the similar policy.
The immediate cost may dictate the choice of the car insurance policy. However, an additional $200-$300 a year can provide a total peace of mind. The third party car insurance costs about 50% of the price for the comprehensive policy. In many cases this saves a couple of hundreds of dollars. Yet, the comprehensive car insurance provides a thorough protection. Usually, with the comprehensive options, there are no little ticks, no multiple choices and no small prints to study.