The ABCs of Car Insurance

Buying a car, whether it’s your dream ride or a second-hand runabout, is exciting. Having it bumped, scraped, sideswiped or even written off is not so fun, especially if you don’t have insurance.

With a car likely to be the second biggest purchase you make – after a home – taking out cover on it can save you financial heartache.

Not sure where to start? Buckle up – we’re breaking down the basics with help from Allianz.

Picture this: your shiny new car meets a runaway trolley or a distracted driver. Without insurance, you’re footing the bill, and that bill could be huge.  Besides covering damage to you, or your car, insurance can cover damage to other people and their property, so a car accident isn’t a financial nightmare.

Allianz Comprehensive car insurance covers your car, plus damage you cause to other people’s cars or property. It does not cover your liability to pay compensation if you cause injury to another person. Third Party Property Damage (TPPD) Insurance provides cover for damage you cause to other people's cars and property while using your car. It does not cover damage caused to your own car or injury you cause to other people.

Buying a new car is a good time to consider whether car insurance is right for you. The moment you take the wheel, you’re responsible for any damage you may cause. Imagine leaving the dealership and bumping into a Bentley.

Allianz makes getting a quote for car insurance or buying car insurance online really quick and easy. You will need a few key details, such as make, model, year, registration, and any non-standard accessories or modifications for your vehicle, and you’re almost good to go.

There are different levels of insurance coverage, for different budgets, and needs. This can be confusing if you’ve never had insurance before – and even if you have! So, let’s look at them.

All drivers in Australia must have Compulsory Third Party (CTP) insurance, also known as a Green Slip in New South Wales, to register their car. It covers other people’s injuries if you’re in an accident and you’re at fault, but not their car, your car, or or, some policies do not cover your own injuries. That’s not great news if you hit an expensive car, a power pole, or it’s more than a fender bender.

Allianz has dedicated teams in New South Wales, Queensland and South Australia who specialise in CTP claims in their state, to make sure you’re getting the best possible service.

Can’t stretch to adding comprehensive insurance? Third Party Property Damage Car Insurance covers other people’s stuff but, generally, doesn’t include damage to your own car –?so let’s hope it’s an old banger.

Allianz provides up to $20 million cover for damage you cause to other peoples’ cars or property and reasonable legal costs and expenses.

With Allianz’s Comprehensive Insurance, if you smash into someone else’s brand new Lexus, for example, and your car is badly damaged too, you’re covered for the cost of repairs to your car and liability cover for up to?$20 million for damage you cause to other people’s cars or property, arising out a single accident or its related events.

You can also lend a mate your keys and they’re covered the same as you1. Plus,if the accident wasn’t your fault and you’ve supplied the other driver’s details, you get a rental car while your car is being fixed or replaced, or a $50 a day travel allowance2.

You can’t control the weather, or random crime. But, with comprehensive car insurance, accidental damage like hail, fire, or theft is covered. With Allianz, if your car is less than two years old and is stolen or written off, you also can choose to get paid the agreed value, or have your car replaced with one of the same make and model anywhere available in Australia.

Other extras you can get paid for: the cost of travelling from the scene of the accident, and the replacement value of any baby or child seats that were in the car at the time of the crash3.

Buying an EV can be a steep learning curve. But with Allianz’s Comprehensive Car Insurance, you’ll get all the features you’d expect from a traditional car insurance policy for your EV. For example, if your brand new EV is written off or stolen within two years of rolling off the assembly line, you can choose to be paid the agreed value or have it replaced with the same make and model where available in Australia.

You’ll also be covered for things like battery fires, loss or damage and accidental damage to the charging cables, wall mounts and wall chargers which are owned by you. Plus, Allianz offers agreed value cover for EVs, which means you’re insured for a fixed agreed amount – no worrying about depreciation during your policy term.

Lots of factors go into the price of your premium, and each insurance company calculates the cost of car insurance differently. Factors that can be taken into account include your age, driving experience and claims history, your car’s value, where you live and how you use your car.

So, if you scored a flashy sports car for your 21st?birthday, have previously had an accident that was your fault, and live in a high theft neighbourhood, you can expect to pay more than your Nan who garages her Mazda and only uses it to go to the shops.

Want to keep your costs down? Keep your driving record clean and park somewhere safe.

Many insurers, including Allianz, offer the choice of paying monthly, not just annually, so you can plan your budget without breaking the bank.

You bet, and Allianz lets you pick from a given range of excess options with its Comprehensive Car Insurance. Keep in mind that you may need to pay an additional excess in certain circumstances, such as an age excess if the driver is under 25.

If you have Third Party Property Damage Insurance only, the excess is fixed.

Remember too, excess amounts can vary based on your age and driving history.

For more information and tips on car insurance for under 25s and car insurance for seniors, head to the Allianz website.

You’re heading home from work or running a quick errand when someone doesn’t stop in time and rear-ends you at the lights. No one’s hurt, thankfully, but your car’s taken a knock and your heart’s pounding. So, what happens next?

You might be a bit shaken up, but you should contact the police and ambulance if people are injured. Remember, you still need to record as much information as you can. This includes:

Jump online and start your claim in your own time or call your insurer and speak to someone who can guide you through it. Either way, with Allianz, you’re not on your own. They will follow up if they need more info, and guide you through the next steps.

What happens next depends on the accident and your type of cover. Your insurer might organise to repair your car, replace it if it’s written off, or pay out your claim so you can get back on the road.

For more information on car insurance and what’s right for you, head to the Allianz website.

This article has been prepared by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL 234708 ("Allianz"). It is a summary of key concepts and not meant to represent the complete picture on any given matter. It is not meant to be legal advice. The information should be read in conjunction with the relevant legislation and regulations. In some cases, information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way.

Any opinions expressed constitute our views at the time of issue and are subject to change. Neither Allianz, nor its employees or directors give any warranty of accuracy or accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in this article.

Any advice here does not take into account your individual objectives, financial situation or needs. Terms, conditions, limits, and exclusions apply. Before making a decision about this insurance, consider the relevant Product Disclosure Statement (PDS)/Policy Wording and Supplementary PDS (if applicable). Where applicable, the PDS/Policy Wording, Supplementary PDS and Target Market Determination (TMD) for this insurance are available on this website. We do not provide any form of advice if you call us to enquire about or purchase a product.

1 Driver exclusions apply if the driver is unlicensed, is not following the conditions of their license, refuses a drug or alcohol test, is under the influence of drugs or exceeds the legally allowed alcohol limit. Refer to the Comprehensive Car Insurance or Third Party Property Damage Car Insurance PDS for full driver, usage and other policy exclusions as set out in the "What's not covered" section. An additional excess applies to drivers under 25.

2 We'll arrange a rental car of a similar size and type to your car after a covered collision where you are not at fault and have provided us with the at fault person's details. You'll get the rental car for as long as it takes to either fix your car, pay you the cost of repairs, or determine if your car is a total loss. If a rental car of a similar size and type (e.g. medium SUV) to your car is not available, we will pay you a travel allowance of $50 a day for as long as we would have given you a rental car.

3 We’ll pay to replace any damaged or stolen child seat or baby capsule in your car at the time of a covered incident (up to $500 per seat) unless the car itself isn't damaged or stolen.