For most of us, insurance is one of those tasks we can often place on the bottom of our to-do lists. It’s something we know we need to help protect us on the road yet prefer not to think about until we absolutely have to.
When it comes to choosing the right cover, we understand different types of insurance can be a bit confusing – especially when it comes to car insurance – but rest assured we’re here to help.
So, if you own a vehicle or are planning on getting one, we’ll help you understand the differences between various car insurance options to help you decide which level of cover is right for you.
Types of car insurance
Compulsory Third Party Insurance (CTP) is compulsory for all drivers. It’s mandatory insurance you need to purchase before you’re able to register your car. Also known as a ‘Green Slip’ in NSW and a ‘Transport Accident Charge (TAC)’ in VIC, CTP Insurance protects people who are injured in an accident if you’re at fault.
If another person (the third party, such as the driver of the other vehicle, a cyclist or a pedestrian) is injured in a road accident that’s your fault, your CTP Insurance means they can access medical treatment and, if their injury is serious, income support. Keep in mind those who endure severe injuries are entitled to ongoing care and the support they need to recover.
Keep in mind a CTP Green Slip doesn’t cover damage to your vehicle, other vehicles or property – only injuries. But if you get a CTP Green Slip for your car with NRMA, we also give you Driver Protection Cover. This is extra cover for you if you cause an accident and suffer certain serious injuries, so you can get the medical attention you need to get better, too.
What if it’s not my fault?
CTP Insurance means that anyone who is injured in a road accident, regardless of who is at fault, will have access to medical treatment and income support for up to six months. Those not at fault with serious injuries are entitled to ongoing care and support for over six months, to help them recover.
While CTP Insurance covers personal injury claims in an accident, it doesn’t cover the cost of damage caused to your own vehicle or anyone else’s property. But that’s where Car Insurance comes into play.
Car Insurance is what you need to help protect your vehicle and others from accidental damage. At NRMA, we offer five types of car insurance policies:
Third Party Property Damage
The basic cover every car owner should consider is Third Party Property Damage. This protects you if you’re at fault in an accident and damage someone else’s car or property – but it doesn’t cover the cost of damage to your own car. If you have Third Party Property insurance, it will pay for the repair or replacement of others damaged property. If you don’t have this cover, you’re personally responsible for these costs.
Third Party Fire and Theft
For extra peace of mind, you also have the option to take out Third Party Fire and Theft, which covers you for damage caused by you to someone else’s car, damage to your car caused by fire, and theft or attempted theft. Keep in mind this policy does not cover your own vehicle from damage caused in an accident.
This is the most popular car insurance because, as its name suggests, it’s a more inclusive insurance. Comprehensive Car Insurance covers you for damage or theft to your car (and generally, property in your car), in addition to any third party damage. The important thing to know is that this cover pays for the repair or replacement of your items. When you take out Comprehensive Car Insurance with NRMA, your policy covers:
- Theft and vandalism
- Fire, storm and flood
- Hire car after an accident, theft or attempted theft
- New car replacement
- Emergency repairs
- Personal items
- Baby capsules and child seats
- Tools of trade
The great thing is extras and mods like spoilers, alloy wheels and tow bars are automatically covered at no extra cost.
This is the most premium car insurance you can get. It’s our highest level of cover, with all the protection of Comprehensive Car Insurance, plus extras to enhance your cover. Comprehensive Plus gives you extras like:
- A hire car if your car can’t be driven after any incident we cover, even if you cause an accident
- No excess to pay for glass damage repairs
- Taxi fares (up to $250) to get you home if your car can’t be driven after an accident we cover.
You can add optional extras including No Claim Bonus protection, so you can make one claim annually that’s not your fault without reducing your No Claims Bonus, and choose any repairer to fix your car if you don’t want to use NRMA Partner Repairers.
Veteran, Vintage and Classic
If you own a classic car that holds a special place in your heart (and garage), you may want to go the extra mile to ensure you protect it the best you can with NRMA’s Veteran, Vintage and Classic Car Insurance. This policy protects veteran cars made before 1919, vintage cars made between 1919 and 1930, classic cars that are at least 15 years old, and we can also cover cars used for wedding hire, special occasions, hobbies or recreation.
While car insurance isn’t mandatory, it’s important to know that if you don’t have car insurance and you have an accident and you’re at fault, you are responsible for all parties’ costs for repairs and replacement.
Overall, the main thing to remember when it comes to the difference between CTP and Car Insurance is this: CTP insurance is for people. Car insurance is for property.
For more on how you can keep protected behind the wheel, call us on 13 21 32 or get a quick car insurance quote online. We’re always here to help.