How to Get Insurance for Used Cars?

Buying a car is one of the most important decisions we make. 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 and be fully covered in any uncontrolled situations, but how do you know what one to choose?

Shop for Cars has put together a guide on the 4 different types of car insurances available and how to get insurance for Used Cars:

What are the different types of car insurance?

If you are looking to purchase a used car, it is so important that you understand the different types of car insurance that are available to you. 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 motor drivers in Australia. CTP covers yourself and 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, fire damage, weather events, vandalism as well as all legal costs associated in the unfortunate event.

Third Party Car Insurance: Third Party Car Insurance covers you in situations that you cause damage to another vehicle or property if 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 policies as the Third-Party Car Insurance option however it additionally covers you in situations when your car is stolen and any fire damage.

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 me? What do I need to be covered for? What type of value do you want to insure the car for?

All policies have both positives and negatives for motorists and do fluctuate in price. Pricing is often based upon the value you want to insure the car what you want to be covered for, the residing location of the vehicle and your age. If you are under 25 years of age you will pay higher premiums due to increased risk. It is highly recommended that you thoroughly evaluate your intended use for the car and all the different terms and conditions, pricing and other requirements that come with the different policies.

Where to get an insurance policy?

There are over 50 car insurance providers in Australia. All providers have different requirements needed before your application is approved.

Providers also offer different incentives, prices or discounts for drivers dependent on the application, so we highly recommend researching and evaluating your options with all relevant parties before deciding.

What do you need for an insurance application?

Some of the common requirements car insurance providers request for application 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 prior to purchasing. You should undertake vehicle and engine checks, test drives, PPSR and Car history reports, and most importantly the vehicle safety features.

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

Final Word

Before choosing a car insurance, it’s so important that you understand the different policies on offer, what suits you best and what you expect to get from an insurer. We strongly recommend seeking further advise from relevant parties to make the best strategic decision on car insurance for a used car.