How to Get Insurance for Used Cars?

Buying a car is one of the most important decisions of our lives. Before spending thousands of dollars on a car it’s so important you understand all the different costs associated. Insurance is one of the most important on-going costs for all motorists. Insurance will make sure you protect yourself in any uncontrolled situations, but how do you know what insurance policy to choose?

Shop for Cars has put together a guide on the 4 different types of car insurances available to Australian motorists. 

What are the different types of car insurance?

In Australia there are four primary types of car insurance, one of which is compulsory for all drivers.

Compulsory Third Party (CTP) Insurance: CTP insurance is a compulsory requirement for all motorists in Australia. CTP covers yourself along with any injuries or fatalities you may cause while you are on the road.

Comprehensive Car Insurance: Comprehensive Car Insurance completely covers your car if it is damaged in an uncontrolled event. If your car is stolen, has fire damage, weather damage, vandalism as well as all legal costs associated in an unfortunate event you will be covered.

Third Party Car Insurance: Third Party Car Insurance covers you in situations that you cause damage to another vehicle or property that you are liable for. This does not include cover for your car damage but that can be added for an additional cost.

Third Party Fire and Theft Car Insurance: Third Party Fire and Theft Car Insurance includes all the options in the Third-Party Car Insurance option however, it additionally covers you in situations whereyour car is stolen or has any fire damage.

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How to choose the right policy?

Apart from CTP Insurance, which is compulsory in all states and territories, choosing a policy is best determined on your intended use for the car. Before considering an Insurance policy you will need to ask yourself what insurance will benefit you? What do you need to be covered for? What type of value do you want to insure the car for?

All policies have both positives and negatives. Pricing is often based upon the value you want to insure your car for as well as your residing location and age. If you are under 25 years of age you will pay higher premiums due to increased risk. 

Where to get an insurance policy?

There are over 50 car insurance providers in Australia. All providers have different requirements.

Some insurance providers offer different incentives, discounts  and prices based on your application. It is  highly recommend you research and evaluate all options with relevant parties before deciding.

What do you need for an insurance application?

Some of the common requirements car insurance providers request include:

  1. Your Vehicle Type
  2. How many kilometres are you planning on travelling each year?
  3. Suburb and address where the car will be kept
  4. If your car is staying in a garage, driveway on the street etc.
  5. Car Registration
  6. Use of the car (Personal, Ridesharing, Business)

Every provider may have different requirements needed to submit a car insurance application.

What to do when buying a used car?

Used cars are in demand right now! Before buying a used car there are many things you need to investigate. You should undertake relevant vehicle and engine checks, go on test drives, and most importantly check the vehicle safety rating.

It is highly recommended that you read the NRMA checklist buying a used car to understand the different areas you should look at prior to making a purchase.

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Final Word

Before choosing a car insurance, it’s so important that you understand the different policies on offer. We strongly recommend seeking further advise from relevant parties to make the best strategic decision on car insurance.

We hope you enjoyed reading this article. To read more articles like this, please visit the Shop for Cars latest news page here.

About Shop for Cars,

Shop for Cars is Australia’s first car dealership-only online classified. Shop for Cars brings you the best quality new and used vehicles from trusted motor dealers Australia wide. Shop for Cars currently has over 12,500 cars listed for sale all from licensed Motor Vehicle Dealers ONLY.

Click here to begin your search.