Car Insurance Policy

Together with owning a car or a vehicle is the responsibility of getting the right car insurance policy for your protection. What happens if your car is involved in an accident and you don't have a car insurance policy that will cover the damages? This is one of the many concerns of a car owner or driver; hence, for your peace of mind, it's best that you get a car insurance policy that suits your needs.

Car Insurance Policy Types

Basically, there are four common car insurance policy types: the compulsory third party car insurance policy or the CTP Green Slip, the comprehensive car insurance policy, the third party property car insurance policy, and the third party fire and theft car insurance policy.

Compulsory Third Party Insurance Policy or CTP Green Slip

The most basic car insurance policy is the CTP Green Slip. In most cases, a CTP car insurance policy is require when you get your car registered. It provides basic cover against personal injuries claims if you injure or kill a person in a car mishap. It also covers legal costs when a claim for compensation for third party injury is filed against you. However, this policy doesn't cover damages to other people's property caused by your car as well as damages to your own car.

If you think that your car isn't worth much, a CTP Green Slip car insurance policy may suffice. But what if your car happens to run through a high performance car by accident? Then you'd realise that CTP Green Slip car insurance policy is not enough.

Comprehensive Car Insurance Policy

The best car insurance policy that you can get is the comprehensive car insurance policy. Although it may be the most expensive car insurance policy, it provides you with extensive coverage. Comprehensive car insurance policy covers damages to other people's property caused by your car and at the same time, it covers damages to your own car. Regardless of whose fault the accident is, your insurance company will pay for repairs and even replacement of car. This car insurance policy also includes coverage for damages and loss from fire or theft.

Third Property Car Insurance Policy

The third party car insurance policy is comparatively cheaper than the other car insurance policies. This car insurance policy covers the damages that your car caused to other people's car or property. Depending on your insurance company, a third party car insurance policy may or may not include limited coverage for the damages to your own car caused by an uninsured driver.

Third Party Fire and Theft Insurance Policy

The third party fire and theft car insurance policy covers damages to other people's car or property plus a limited coverage for damages or loss of your car in the event of fire or theft only.