Car Insurance

Comprehensive Car Insurance

Comprehensive Motor Vehicle Insurance is the most popular type of insurance available for your vehicle.

It covers:

  • The cost of repairing damage to your own vehicle,
  • cost of repairing damage to someone else’s vehicle or property damage,
  • Theft cover is also included.

Most policies are arranged on a “market value” basis. This means that if your vehicle is stolen and not recovered or damaged beyond repair, the insurer pays the current market value of the vehicle at the time of the claim.

Premiums for comprehensive insurance are based on a number of factors, including:

  • Type of car – including any modifications and accessories
  • Age of the youngest regular driver
  • Driving record of the nominated drivers
  • Claims history
  • Usage of Vehicle – whether it be for private or business use

Third Party, Fire & Theft

This alternative type of policy, as the name suggests, covers fire damage or theft of your vehicle, and third party property damage only.  It does not cover your vehicle for damage under any other circumstances.

Third Party Property Damage Insurance

This type of policy only covers damage that you cause to another person’s vehicle or property. It does not provide any cover for damage to your own vehicle.

Third Party Injury Insurance

Dependant on which state you live in, this policy is either included in your registration or must be taken separately (also known as a Green Slip or CTP). It is compulsory in all states and territories of Australia to have Third Party Injury Insurance. As the name suggests, it only covers injury resulting from a motor vehicle accident.

Common Terms Explained

No Claim Bonus: This is a system where you are awarded a discount on your premium for claim free years.  For the first claim free year, you receive 20%. Each claim free year after that, you receive a further 10%, up to a maximum of 60- 65%.

Following a claim where you are deemed to be ‘at fault’, your no claim bonus (NCB) rating is reduced, usually by 10%.

If you have an accident where you are not at fault, and can provide details of the other party, your NCB rating won’t be affected.  (Note that the definition of an ‘At Fault’ claim includes circumstances where you are unable to identify and provide details of the party responsible.)

Many companies also offer the option to protect your maximum no claim bonus rating, meaning whether you are at fault or not your NCB won’t be reduced.

Market Value: The market value of your vehicle in your local area, at the time of the loss.  Taking into account the condition of your individual vehicle prior to the loss.

 Agreed Value: A fixed amount that your car is insured for, which would be paid in the event of your vehicle being stolen and not recovered or damaged beyond repair. In most cases the premium is higher than for a market value policy.  Insurers will usually limit Agreed Value sums insured to a max of 10% above the current market value.

 Excess: This is the amount that you must pay towards a claim. Is some circumstances more than one excess may apply, eg: drivers under 25yrs who have not been nominated on the policy.

Capital Insurance Brokers will help you select the right Motor Vehicle Insurance solution to meet your needs. We take the guess work out of insurance for you. Give us a call on (02) 6282 7666 to speak with one of our Account Managers or start now and request an insurance quote.