Insurance of each and every vehicle moving on road is compulsory by law in New South Wales, Australia. Like all other states, compulsory third-party insurance or green slip insurance as popularly known in NSW is the basic and the cheapest car insurance NSW policy for any car.
This insurance cover protects you for any legal liability for injury, death caused by you to the third person whether it is the other driver, pedestrian or cyclist. In all the states of Australia, cost of CTP insurance is covered in the cost of registration of vehicle. However, in the state of NSW you have the option of choosing the CTP insurance provider.
In addition to the CTP insurance, which is the cheapest car insurance NSW, there are other types of car insurance policies as well. These policies not compulsory by law, but can enhance your safety and security together with your vehicle in case of theft, fire or loss and damage due to accident etc.
Some other policies that are also available in NSW are as follows:
- Third Party property insurance policy
- Comprehensive insurance policy
- Third party fire and theft
- Additional coverage options
Factors effecting premium cost
There are several factors that significantly impact cost of your car insurance premium like:
Age of driver
While insurance premium for experienced drivers is less, premiums for new drivers is more as the statistics tell that people involved in road accidents are more of younger age than the older ones.
Driving record and claim history
Your driving history makes a huge difference in premiums. If you are a low kilometer driver or use the vehicle in business, you qualify as safe driver and claim history is also important because premiums also depend whether you have made any claims on the policy recently or not.
Kind of vehicle
Comprehensive insurance premiums largely depend on the vehicle you drive. If you are driving a big car, the premium is higher as compared to the smaller car. Age of the car, model, engine capacity and other factors impact the premium of the policy.
Premium of comprehensive insurance policy also depends on the place you park your vehicle. If you are parking the vehicle on unsecured street, the premium will be more while if you are parking in a garage or off-street carport, premium will be much lesser.
Why do I need comprehensive car insurance?
Even if you take out a CTP insurance policy that is mandatory to drive a car in New South Wales, you will be able to drive a car. However, you can never be sure that liability due accident will not come on you. Even a small hit on the rear fender of an expensive luxury car by you can land you in a liability of a few thousand dollars and if there is a casualty from your driving, you can land in a very big debt for it.
Comprehensive car insurance policy covers cost of repairs and replacement of parts damaged in accident by you or some other driver. The policy also covers transportation of your vehicle up to 100 kms after the accident. The policy also covers damage or loss of your personal belongings in accident as well.
Things to look for in insurance policy
There are always certain inclusions and exclusions in all car insurance policies. If you are buying an insurance policy, it will be worthwhile to take a close look into the inclusions and exclusions mentioned in the policy. Take the help of iSelect for any car insurance or its comparison.