How to choose the right car insurance

7 January 2018

Whether you’re buying a new car, a used car, your first car, or your twenty-first car, choosing the right Car Insurance for your needs can be tricky. Do you go with an all-encompassing Comprehensive policy, or maybe that might be overkill for the run around car you just bought for a song? Either way, knowing that you and your car are covered on the road is important. We compare Car Insurance options so you know what’s right for your needs.

Assess your needs

Before you start shopping for Car Insurance you need to know whether you need complete car cover, or if a more basic option will do. Only you know your specific needs, but there are some general factors that might impact your decision. Some questions you need to ask yourself are:

  • How valuable is my car? And would it cost more to repair, than replace? If so, a more comprehensive level of insurance may end up costing you more in premiums than what your car is worth
  • Do I want cover for theft? If your car is stolen, how will you get around? If you simply can’t live without your car, then it’s worth considering some form of theft cover;
  • Could you afford the cost of repairing someone else’s vehicle – and your own – if you’re at fault? It doesn’t take long for repair costs to run into the thousands, so if you don’t have that kind of money at your immediate disposal, then having some form of Car Insurance can help.

Compare Car Insurance options

When choosing between different Car Insurance options, you have two main types: Comprehensive Car Insurance and Third Party Property Damage. We’ve compared some of the pros and cons below to help give you a head start finding the right type of Car Insurance for your needs.

Explore Car Insurance Options

Comprehensive Car Insurance

Comprehensive Car Insurance gives you cover for damage to your car and damage caused to other vehicles and property, as well as cover for theft, fire and malicious damage. It offers more features and benefits compared to Third Party Car Insurance.

Pros and cons of Comprehensive Car Insurance:

You’re covered from damage caused to your car, regardless of whether you’re at fault or not

You're covered for the value of your car (amount covered) or your car’s market value (if the market value option has been chosen shown on your Certificate of Insurance).

Cover for damage caused by your car to another person’s vehicle or property

Cover for theft and malicious damage, such as graffiti or key marks

Plenty of extra bonuses, such as: hire car after an accident, replacement of your car with a brand new one of the same make and model (or similar make and model if the same isn't available) if it’s less than two years old, and cover for weather events like hail, storm (including cyclone) and flood

Higher premium compared to Third Party Property Damage

Third Party Property Damage

Third Party Property Damage Insurance gives you a basic level of cover for damage caused by your car to another person’s vehicle or property. It’s a non-compulsory type of car insurance and shouldn’t be confused with Compulsory Third Party (CTP) Insurance, which is a government requirement for all registered vehicles.

Pros and cons of Third Party Property Damage:

You’re covered from liability and damaged caused by yourself to someone else’s vehicle or property

You’re covered for damage caused by uninsured drivers

Lower premium compared to Comprehensive Car Insurance

You’re not covered for damaged caused to your car if you’re at fault

The maximum you’re covered for is considerably lower than with Comprehensive Insurance.

With GIO you have four levels of Car Insurance to choose from; whether you’re after comprehensive cover or just the essentials, you can be sure to find a level of cover that’s right for your needs. Get in touch with our knowledgeable insurance specialists today on 13 10 10 to discuss your specific Car Insurance needs. Alternatively, compare Car Insurance online and stop thinking you’re covered – know with GIO.

Insurance issued by AAI Limited ABN 48 005 297 807 trading as GIO. Any advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available.