Whether you're buying a car for the first time or just need some clarification, we've put together this guide to help you understand car insurance better.
Comprehensive (full cover)*
Comprehensive insurance provides the greatest protection against financial loss in the event of damage to, or destruction of, your car as well as damage to the vehicles and property of others.
Comprehensive covers:
- Loss or damage to your own car, up to its market value or agreed value, less any policy excess.
- Towing or salvage costs, if your car cannot be driven because of accidental damage.
- Damage to another person's vehicle or property resulting from an accident involving your car.
- Legal liability for accidental damage to property caused by or connected with the use of the vehicle.
- Automatic cover for a limited period when a change of vehicle occurs.
RAC Comprehensive Motor Insurance
*This information is provided as a guide only. Please read the relevant Product Disclosure Statement to consider if this product is right for you.
Third party fire and theft*
Third party fire and theft covers your vehicle if it is stolen and never recovered or damaged beyond repair by fire. Also for damage you do to someone else's property if you're at fault and limited damage to your vehicle by someone else if they're at fault and uninsured.
Third party fire & theft covers:
- Loss or damage caused by fire or theft as well as loss arising from any damage you may cause to another's property.
- Legal liability for accidental damage to property caused by or connected with the use of the vehicle.
RAC Fire & Theft Insurance
*This information is provided as a guide only. Please read the relevant Product Disclosure Statement to consider if this product is right for you.
Third party property damage*
Third party property damage only covers someone else's vehicle or property, along with limited damage to your vehicle by someone else if they're at fault and uninsured. It does not cover the vehicle you are driving in the event of an accident.
Third party property damage covers:
- Financial loss arising from damage you may cause to another's property, eg. a car, fence or traffic light.
RAC Third Party Insurance *This information is provided as a guide only. Please read the relevant
Product Disclosure Statement to consider if this product is right for you.
Compulsory third party (CTP)
- This is the only form of insurance that is compulsory and in WA is issued by the state government only.
- It is included in the government vehicle registration fees you pay when you register your vehicle for use on public roads.
- CTP covers you against a claim arising from the death or injury of another person due to your negligence.
- It does not cover damage to vehicles or property for you or anybody else.
Insurance terms explained
Excess
- Excess is the amount you contribute to the repair of your vehicle in the event of an insurance claim.
- Younger drivers can expect to pay higher excess in the event of a claim.
- Many insurance companies offer the option to decrease the amount paid in excess in the event of a claim by increasing the amount paid in premium.
Premium
- Premium is the amount you pay on a yearly basis to insure your vehicle.
- Premiums can be paid all at once or by regular monthly instalments.
- Some factors affecting premiums are the age of the driver, type of vehicle, age of vehicle, and the amount the vehicle is insured for.
No-claim bonus
- No-claim bonuses are offered by insurance companies to reward a claim-free period.
- The result of this bonus is a discount in the amount of the yearly premium.
- The discount depends on the number of years insured without making a claim.
Extra cover
- If you plan to fit additional accessories to your car, check with your insurance company so that extra insurance cover can be arranged.
- Note: it is recommended that you arrange adequate insurance cover for your new car before you drive it away from the car yard or private home after purchase.