Car Insurance

Everything You Ever Wanted to Know About Car Insurance

According to a study done by Australian Bureau of Statistics (ABS) in January 2017, there are 18.8 million registered vehicles which are inclusive of all vehicles registered with a state, territory or motor vehicle authority for unrestricted use on public roads excluding recreational, veteran and defense forces vehicles. Of this registered vehicles 75.7% are petrol powered while 22.2% are diesel powered. From this study, the diesel powered vehicles are still the fastest growing under the fuel type. The data is usually collected for the purposes of collection of 3rd party insurance and for licensing. Have you covered your car?

AAA report released in 2016 showed that 87% of drivers engage in some kind of risky behavior while driving. 70% of them admitted that during the time of the accident they are usually talking on the phone while 42% of them are usually reading text messages and emails while driving. As a matter of fact, the National Safety Council in the US estimates that one in every four car accidents is associated with phone use.  Are you among the number? You may not cause an accident and in fact, you are very careful behind the wheel but another driver crashes your vehicle. That’s why you need to have your vehicle insured. Let’s go deeper and look at the types of auto insurance.

The Most Common Types of Car Insurance

Getting the most suitable policy for your car can be hectic especially now that it’s a legal requirement. It is always good to determine how much you are required to pay at each level and whether the protection given is equal the amount of premium. There are 3 common types namely:

  1. Third Party only
  2. Third Party, fire, and theft
  3. Comprehensive

Third Party Only

This is the basic minimum policy required by the law and the other 2 have it in them. In case you cause an accident and you injure someone or damage their car or property this policy covers it. However, you pay for your injury, damage to your car or property from your pocket.

Third Party, Fire, and Theft

This policy covers all the benefits of the Third Party Only policy and in case your vehicle is stolen or catches fire it is protected. In addition, any injury or damage sustained during the theft or fire is catered for.

Comprehensive policy

This policy covers all the benefits of Third Party, Fire, and Theft and also in case you cause an accident, any damaged sustained to others or to you is covered. In case your wind screen breaks it is catered for. Many believe it is the most expensive though it is not always true.

Car Insurance Termination

Now that you have your insurance, you should stay within the set requirements otherwise your insurance policy can be canceled. The most common causes of termination include:

  • Failure to pay the premium on time and in full – this is the monthly set amount you should pay to sustain your policy
  • Suspension of your driver’s license this could be due to reckless driving
  • Falsifications or omissions of information

You can increase your chances of insurance termination by:

  • Leaving your car unlocked
  • Failure of car maintenance
  • Allowing pets roam into your car
  • Lending your car to your friend
  • Not updating your employment status in case you change
  • Attaching other things to your windscreen

You don’t have to worry about your auto insurance termination if you are a careful and truthful driver.