Car insurance in Australia is compulsory; so you are breaking the law if you drive a motor vehicle on a public road and are not insured to do so. This includes any type of motor vehicle, from 'three-wheelers' to limousines and articulated lorries (see Lorry / Haulage Insurance). There are four main Types of Car Insurance. The minimum cover required by law is provided by 'Compulsory Third Party' insurance which is mandatory in all states and Territories and is built into your vehicles registration. This protects other road users and the general public; it covers damage to anybody else's car, and injury to anybody else, but does not offer compensation to you or your car: even if it is stolen or damaged.
Most drivers want to protect their car too; to do so, two further types of car insurance exist. 'Third-Party Fire and Theft' is much the same as third party insurance, but also covers your car in the event of it being stolen or damaged in a fire. 'Fully Comprehensive' insurance, often shortened to 'fully comp', insures every aspect of vehicle damage and theft, as well as your personal effects. You must have one of the three types of car insurance for each motor vehicle that you use on a public road.
In addition, you may wish to purchase an optional supplementary insurance which can offer extra protection if something goes wrong while you are driving. Breakdown Cover provides assistance if your car has a problem causing it to break down. A range of problems are covered, from covering the cost of replacing a tyre, to covering the cost of accommodation while your car is being repaired.
Another supplementary car insurance is Motor Legal Protection. If you are the victim of an accident that was not your fault, you are unlikely to be recompensed for all your financial losses. Motor Legal Protection would pay the legal costs of trying to recover these losses, including compensation for not being able to use your car, and compensation for damage to clothes or other personal belongings. Personal Accident Benefit may already be included with your standard car insurance policy, but can be taken out separately if not. It pays out if you or your partner suffer a serious injury in the event of an accident, whether in your car or somebody else's.
If something does go wrong, car insurance offers the peace of mind that you will be protected against any liability or loss you incurred. There are thousands of fatal and serious accidents on Great Britain's roads each year, and many more non-fatal accidents, where an insurance claim could be made.
It should be noted that most UK car insurance policies will require your name to be stated on all documentation. Therefore, unlike an MOT certificate which is attached to the car and is thus still valid even if the car is sold, car insurance covers the policy holder and not merely the car: if you buy a second hand car, you must purchase car insurance for yourself. At first, car insurance may seem a confusing process which you have to go through in order to comply with the law. However, with careful planning you can also have peace of mind so that if the worst should happen, you will not be left with unrecoverable losses.
For further information see:
> The Law
