COSTS TO CONSIDER

Insurance

Insurance is an essential and can add a lot to the cost of owning a car. It pays to think carefully about the type of cover you need, and to start shopping around before you buy your car.

Start shopping around for a good insurance deal before you buy your car, as well as getting an estimate from your dealer.

Some manufacturers can offer competitive comprehensive insurance packages. Speak with your dealer to find out what's available.

Start shopping around for a good insurance deal before you buy your car, as well as getting an estimate from your dealer.

Some manufacturers can offer competitive comprehensive insurance packages. Speak with your dealer to find out what's available.

Compulsory insurance

 

In New South Wales and the Northern Territory Compulsory Third Party Insurance or CTP is mandatory and you cannot drive a vehicle until you have a 'Green Slip,' (CTP Insurance forms printed on green paper). Each state and territory has a compulsory Third Party/mandatory motor vehicle accident personal injury insurance scheme. The requirements vary by state or territory, to learn more about the compulsory insurance requirements in your state or territory visit:

ACT: ACT Government Treasury

NSW: NSW Government State Insurance Regulatory Authority

NT: Territory Insurance Office (TIO)

QLD: Queensland Government Motor Accident Insurance Commission

SA: Motor Accident Commission South Australia

TAS: Motor Accidents Insurance Board

VIC: Transport Accident Commission

WA: Insurance Commission of Western Australia

CTP only covers personal injury liability as do most state based third party insurance schemes.

Many drivers opt to spend more for the added security of more extensive cover.

Third Party Property Insurance for instance, covers damage to someone else's property or vehicle, but not your own vehicle. While Third Party Property Insurance with Fire and Theft, also covers your vehicle in the event of fire or theft normally up to maximum of $5,000. And Comprehensive Insurance covers damage to someone else's property or vehicle as well as your own.

Cost of insurance

 

Depending on the insurer, the cost of car insurance will vary due to a number of different factors including the type and age of the car, your age and your driving history.

Each company is different, and may place different premiums on perceived risks, so be sure to do your research.

Having a good driving record will often mean you are eligible for a lower premium. However, if you have had accidents in the past, or been fined for speeding or any other offence, be honest when the insurance company asks. Being untruthful might catch up with you if you need to make a claim and the insurer refuses, based on your failure to disclose your record.

Adding modifications to your car, such as tinted windows, subwoofers and body kits etc. may also impact on the insurance cost, depending on the insurance company's policies around aftermarket modifications. And if you do make changes, let your insurer know.

Finally, if you have other types of insurance, such as home contents insurance, you may be eligible for a discount by bundling your car insurance with the same company. Ask your insurer.

Be prepared

 

Make sure that your new car is adequately insured from the minute you drive it away. It's important to speak to your insurer before the final transaction is made with the car dealer or the owner of the car if you're buying second-hand.

If you're taking a car for a test-drive, discuss the owner or dealer's insurance and know who will pay for repairs and excess in case of crash. Some insurance companies will extend your own cover, or offer temporary cover on a vehicle, for an additional premium.