How car insurance works

Types of cover
Generally there are three main types of car insurance available which means that you can choose the type of cover that’s right for you and your vehicle:

Comprehensive – this is the highest type of cover you can purchase and protects you against any accidental loss or damage to your vehicle or another person’s property, no matter who was at fault.

Third Party – covers you against damage you cause to other people’s property in an accident. This means that if the accident is your fault, you will have to cover the expenses and repairs to your vehicle. You may also be able to ‘upgrade’ your Third Party cover to protect you against damage or loss to your vehicle caused by fire, theft or third party theft.

Compulsory Third Party (CTP) – in most states you must have CTP Insurance in order to get a vehicle registered. It protects vehicle owners and drivers against claims of personal injury caused by you to another person.

How car insurance premiums are calculated
Insurance underwriters generally calculate premiums based on a level of risk they associate with the driver and the car. A number of factors may be considered when working out the level of risk such as:

• age and gender
• driving and accident history
• the type of car you drive and any modifications it’s had
• your youngest nominated driver

Note: All car insurance policies have terms, conditions and exclusions. Always make sure that you read the Product Disclosure Statement (PDS) before buying an insurance product.

Check out Virgin Car Insurance Comprehensive cover

Check out Virgin Car Insurance Third Party Property

Getting a policy

Each insurer is different so it’s a good idea to look for the options & extras available such as roadside assistance, rating protection and restricted driver discounts to name a few.

There can also be other ‘value add’ items like discounts if you buy online, pricing offers and customer service.

Once you’ve chosen the insurance provider and policy for you, here are some of the things that you’ll need in order to take out a policy:

• your contact details
• details about the car you wish to insure
• driving and insurance history

Most insurers offer a choice of paying for the policy upfront in one lump sum or by the month. Whichever way you choose, remember that there’s a cooling off period in case you change your mind or find the policy isn’t right for you.

Check out Virgin Car Insurance Third Party Property