How To Choose The Right Auto Insurance Plan For You | The rural

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How to choose the right car insurance plan for you

Choosing the right car insurance plan for you can be a challenge, with a range of premiums and policies available in the market today. You can sometimes feel overwhelmed or confused when shopping, especially if it’s your first time looking for one.

Whether it’s your 10th car or not, there’s no one way to choose the best policy. It all comes down to your needs as a car owner, among other factors.

How do you know which package suits your needs? What factors should you consider when comparing insurance plans and providers? These are just a few of the questions you need to answer as you go.

Understand the different types of car insurance plans

Before you can choose the right plan, you must first know which ones are available. Some insurers such as Youi provide information that allows you to easily and quickly compare the different levels of cover they offer.

But of course, comparisons are more effective if you know what each plan entails. In Australia, there are generally four main types of car insurance that every vehicle owner should be aware of. These are:

1. Compulsory civil liability insurance (CTP)

Also known as “green slip” in New South Wales, CTP is a required policy in all Australian states. This insurance is already included when paying the car registration fees. If you are from New South Wales, however, the green slip is purchased separately.

The green slip covers compensation claims if a third party is injured or killed in a traffic accident while you are driving or if someone else is driving a car registered in your name.

2. Third party property insurance only

This auto insurance only covers damage to the other party’s property (including their car and additional legal fees) in the event of an accident, especially when you are the only one at fault. However, this insurance will not cover damage to your own vehicle.

3. Third-party fire and theft insurance

In addition to covering damage to third party property, this insurance also provides cover for your own vehicle, normally with other add-ons. Third-party fire and theft insurance will also typically cover earthquakes, theft, and fire damage to your car.

4. Back to back insurance

Having a comprehensive insurance plan means, in most cases, getting coverage for damage, theft, fire, natural disasters and car accidents for your vehicle and that of the third party. This is normally applicable even when the accident is your fault.

How to choose the right car insurance plan for you

Knowing the main types of auto insurance can help you choose the best one based on your needs and circumstances as the policyholder. Obviously, the comprehensive plan is the most inclusive, providing the most coverage and peace of mind.

Car insurance tips and tricks

Now that you understand the main types of car insurance plans available in Australia, you can make a more informed decision. However, there are still other factors to consider to make sure you choose the right plan and get the most out of it. To help you, here are some tips and tricks you can use:

  • Choose a reliable supplier

Just as no insurance plan is right for all types of car owners, it’s also safe to say that not all insurance providers are created equal. It is essential to consider a company’s claims reputation before making a decision. Ask them how long they typically take to process a claim, while understanding the different premiums and insurance plans they offer. Avoid vendors that take too long to process a settlement.

  • Understand excess

When you make a claim under your insurance policy, you will have to pay an out-of-pocket amount called the deductible. Basically, the higher the excess amount you pay, the lower the premium you will have for your insurance plan. While increasing your deductible means more savings for you, you also need to consider whether you can pay the deductible in case you need to make a claim in the future.

  • Ask for applicable discounts

Depending on the insurer you have selected, you can request discounts based on specific criteria. For example, you may receive a discount on your premium if you take out an additional policy.

Getting the right insurance plan is one of the best ways to protect your vehicle. Since many different insurers and plans are available, choosing the best plan for your needs is essential.

Take the time to learn more about the types available, then find a reliable provider to help you maximize your premium. Consider your needs as a driver before deciding on a plan and don’t forget to ask about applicable discounts to help you save money.

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