What is Car Insurance ?

How to find the right car insurance and save hundreds or even thousands on the premium. There are a number of different types of car insurance. The most basic is compulsory third party (CTP or green slip insurance), which provides essential cover in case you injure someone while driving .It required throughout Australia when you register your car. If your car is fairly old and not worth much you may think taking out CTP is enough. However , it wont cover you for damage you may cause to other peoples property so make sure you don't run into a Rolls. Your options are : Third party covers you for the damage you may cause to another car and usually includes limited cover for damage caused to your car by an uninsured driver. Third-party property, fire and theft. This also covers you if your car is stolen or burnt. Comprehensive car insurance: This is the best cover option but also the most expensive. It includes the cost of crash repairs or replacing your car, even if you are at fault . Ways to reduce your premium you can easily save hundreds of dollars by shopping around for your car insurance. Our latest report shows average differences between the most expensive and cheapest policies in all states of around $3000 for clim-free adult drivers; over $650 if you have made a claim ; more than $1300 for a family with a young driver;and up to more than $1700 for a young driver alone . Other than shopping around, there are ways to save on the premium . Choose a higher excess for a reduced premium . A no-claim bonus (NCB) can get you a discount of up to 70% you need up to six claim-free years to be entitled to the maximum NCB .