Car Insurance SA
Car insurance requirements differ from region to region. This information is specific to South Australia, and should not be applied to other regions.
Buying car insurance is tricky business — while it’s financially risky to carry too little cover, there’s no need to pour money down the drain on cover you do not need. If you’re shopping for car insurance in South Australia, here’s the lowdown on what cover you must have, and what you can add in order to increase your property and liability protection.
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Compulsory Third Party Insurance Cover
Compulsory Third Party Insurance, or CTP cover, is mandatory for all vehicles registered in South Australia. The good news is, this is one insurance policy you don’t have to worry about purchasing yourself — you’re covered as soon as you register your vehicle, because part of your registration fee goes toward payment for CTP cover.
However, don’t assume that just because you’re registered and have CTP cover that your insurance worries are over. CTP cover offers very limited liability cover. CTP only covers the costs associated with personal injuries sustained by people who are injured in accidents in which you are at fault, and, in limited cases, it may also cover injuries sustained when a passenger is at fault.
CTP does not cover injuries sustained by drivers who are at fault, nor does it cover damages to victims’ vehicles or other property. Furthermore, CTP cover in South Australia will not provide full compensation to victims who are partially at fault for their injuries, such as people who are not wearing seat belts.
Expanding Your Insurance Cover
Just because CTP is mandatory does not mean that you should rely on this cover alone — doing so may leave you vulnerable to heavy financial liabilities should you be involved in an accident where you are at fault. Comprehensive and third party property and/or fire and theft policies are available to help residents of South Australia meet their legal and financial obligations if they are at fault in an accident.
Comprehensive car insurance cover will usually cover the cost of damage or loss both of your property and the property of others should you be at fault in a crash. This insurance typically covers your vehicle and other vehicles or property you damage in accident in which you are at fault. Additionally, comprehensive insurance may cover other damage to –or complete loss of– your vehicle, such as damage resulting from fire, natural disaster or vandalism, and theft of your vehicle or parts of your vehicle.
If you’re not worried so much about the cost of repairing or replacing your car as you are about being financially liable for another person’s property in the event of an accident, third party property car insurance cover may be just right for you. Those who drive older or high mileage vehicles may decide that they are not worth the expense of comprehensive cover.
Third party property insurance covers you for the costs of replacing or repairing vehicles or other property damaged in an accident in which you are at fault. Third party property insurance is relatively inexpensive, and for a bit more money, you can also add fire and theft cover for your own car, which will cover your car in the event it is damaged or destroyed by fire, or stolen.
This article contains general advice about car insurance. The author has not taken into account your financial situation or needs and you should consider whether the advice provided is appropriate for your own circumstances before relying on it.
Filed Under: Car Insurance
