Selecting the right insurance for your car, motorbike, truck or van could save you lots of money if something goes wrong.
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Do you have the right car insurance?

Experience is invaluable when it comes to smash repairs and after speaking with the panel beaters and car specialists at Sheen Group, we have to agree. Established in 1969, they’ve seen just about every imaginable vehicle condition, and heard the stories behind each one.

One of the most common issues they face on a regular basis is dealing with car owners who have signed up for the wrong motor vehicle insurance – which only became apparent when it was time to lodge a claim after an accident. Not only did this leave many drivers out of pocket for the accident but some ran a serious risk of not being able to get affordable insurance next time around.



When it comes to picking the right car insurance, it is crucial to understand your budget and your driving needs.

Motor vehicle insurance options

To help car owners avert making the mistake as many of their customers, we look at the four main options available:

  1. Compulsory Third Party (CTP) is required by all states and territories. It provides coverage for any injuries caused to persons while you are driving. However, this kind of insurance does not cover your financial liabilities through damage done to third party property (including their vehicle) or your own personal liabilities.
  1. Comprehensive insurance covers damage caused to third party property and also to your vehicle. Depending on the policy you sign up for, you may be entitled to claim for certain theft and other risks plus legal fees.
  1. Third Party Property covers damage done to third party property as well as the legal costs. It is important to note that third party property insurance does not cover your own personal liabilities such as the cost to repair the damage done to your own vehicle
  1. Third Party Fire and Theft is essentially a third party property insurance with additional features that cover your own vehicle.

Review your coverage thoroughly to ensure that you have a decent liability coverage for injury and property damage. Where budget permits, you should try and sign up for an insurance policy that accounts for overtime and income loss, costs and risk increase, and other external liability factors.

Where the value of your car is not as significant, for example, if it were a secondhand car valued at $1,000, it may be better to avoid personal property liability coverage and focus on third party injury and damage as well as personal injury coverage.

As a general rule of thumb, minimal coverage will give you minimal protection so, in this situation, you will want to get as much as possible for as little as possible.

Also, don’t forget to maintain a good credit score as low scores have the potential to impact your premium.

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Don Milne

Don Milne is an experienced content creator and social media coordinator based in Melbourne. He has contributed to a wide range of websites and publications for over six years and has a passion for lifestyle information and "hacks" that help make people's lives easier.

The opinions expressed in this article are the opinions of the author(s) and not necessarily those of Homeloans Ltd.