Vehicle Insurance and Car Insurance ?
Vehicle insurance (also known as car insurance, motor insurance or auto insurance) is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle. Vehicle insurance may additionally offer financial protection against theft of the vehicle, and against damage to the vehicle sustained from events other than traffic collisions, such as keying, weather or natural disasters, and damage sustained by colliding with stationary objects. The specific terms of vehicle insurance vary with legal regulations in each region.
Car Insurance
Like buying a car, there is no single best solution when it comes to buying insurance. Make sure that price is not the only factor you think about when you choose your motor vehicle insurance. You have a wide choice of policies, and you should shop around to make sure that you choose a product that suits your needs and circumstances.
As with all insurance, before signing the insurance contract you should carefully read the policy document and product disclosure statement and make sure you ask your insurer about any aspects of the policy that you don’t understand.
Types of car insurance
If you own and operate a private motor vehicle in Australia, there are four main types of general motor vehicle insurance you need to be aware of:
1. Compulsory Third Party (CTP)/mandatory motor vehicle accident personal injuries insurance – required by each state and territory. It protects any person that you might injure while you are driving. It is not an alternative to taking out a motor policy to cover your financial liabilities, such as damage to another vehicle or property, or your own vehicle
2. Comprehensive – covers damage to your own vehicle and other people’s property, as well as theft and some other risks, plus legal costs
3. Third Party Property - covers damage to other people’s property and legal costs, but not damage to your own vehicle
4. Third Party Fire and Theft – Third Party Property with some add-on features that cover your vehicle