Does third party insurance cover other drivers?

Generally Third Party Insurance includes cover for liability caused by any person who is driving, using or in charge of your car with your permission and any passenger getting in or out of your car. You should check the Product Disclosure Statement (PDS) of the Policy you are interested in for full details.


Why should I consider car insurance?

A car is one of the most valuable assets that you will buy, and the cost of having to repair it in the event of an accident or replace it if it has been stolen can be expensive.  Having the right level of insurance can help cover you for this cost , as well as cover you for costs liable to you, if you cause an accident with another vehicle.

How to add another person to your car insurance?

When arranging your quote, you will need to notify your insurer of all parties who will be driving the vehicle. You will need to have their driver’s licence, personal details and driving history on hand.

If you already have existing car insurance and would like to add another person to your policy, simply contact your insurer to let them know, you’ll probably need to have their driver’s licence and details ready.

What is a no claim discount?

A no claims discount is a discount that is offered on your car insurance premium.  This discount is calculated on both your years of driving experience and your claims record, and this discount is increased until you reach Rating 1 - which is the maximum discount.

Do you give rating 1 for life?

This will depend on the policy that you select. You should read the Product Disclosure Statement of the policy that you are interested in to find out more.

What is market value?

Market Value is what the vehicle is worth just before an incident.  The value will depend on factors such as the age of the vehicle, the make and model of the vehicle and the condition of the vehicle.

When does my car insurance cover start?

When you are applying for your car insurance policy you will need to nominate a date for your policy to commence, and as long as your application has been accepted by the insurer and you have paid your premiums your policy will commence on that date.

When should I get car insurance?

You should make sure that your car is covered from the time that you purchase it.  Even if you do not plan on driving it straight away there is the risk that it could get stolen or damaged if it is parked on the street.

What type of car insurance is available?

There are a number of different types of car insurance available.

  • Comprehensive Insurance: This level of cover is the highest level and most complete cover and covers you for theft, fire or damage to your vehicle (the damage was caused by you or somebody else).
  • Third Party Fire and Theft: This level of cover will insure you against damage done to your car by fire, theft, and for any legal liability that you may incur in the event you damage a third party's vehicle or other property.
  • Third Party Property: This is the lowest level of car insurance cover available and will only cover you for the damage that you may cause to another person's property (this includes their car and the property inside).


What does car insurance cover?

It will depend on the level of car insurance that you purchase, however Comprehensive Car Insurance (the most popular type) will generally cover you for accidents and theft, but it will not cover you for breakdowns.   Read the Product Disclosure Statement of the policy you wish to purchase to see cover details.

What is agreed value?

An agreed value is an amount that you and the insurer agree to insure your vehicle.  This amount is generally valid for the term of the car insurance policy.

How do they work out the cost of car insurance?

The cost of car insurance is calculated on a number of factors, some of these include the age, make and model of the vehicle, condition of the vehicle, where the vehicle is parked at night, age and gender of the driver,  drivers history of accident and claims and also the level of cover required.

Do I need to list all the regular drivers of my car on my policy?

Yes, you should list all regular driver of your car.  If you do not include their details they may not be covered.

Do policies cover learner drivers?

Most policies will include the learner driver as long as they hold a valid learner license/permit and they are being taught by their parent who is the nominated driver of the vehicle, however you should check the Product Disclosure Statement of the policy you wish to purchase to check that this is valid for that particular policy.

What is the excess and when so I have to pay it?

The excess is an amount agreed between you and the insurer that you will pay in the event of a claim.   For example if you agree an excess of $600 with your insurer and your claim is for $2,000 you will pay the first $600 and your insurer will pay the remaining $1,400.  Depending on the insurer you can elect to have a higher excess, and reduce the amount of your premium.

What if I move house?

If you move house you will need to contact the insurer and provide them with your new details otherwise you may invalidate your policy.   You may have to pay an additional amount on your premium if your new address is in a higher risk area, or you may even be entitled to a partial refund if your new address is in a lower risk area than your previous address.


Can I cancel my policy?

Yes you can cancel your policy at any time.  You will need to contact the insurer directly to do this and they will advise you of the steps that you need to take to cancel your policy. Some insurers may charge a fee for cancellation in certain circumstances.

What should I do if I have an accident?

If you have an accident you should first of all ensure your car is secure, then report the accident to the police. You should then call your insurer and report the incident.  If you cannot contact your insurer you should do what you can to prevent further loss or damage to your car, and this may include having it towed.  You should then contact your insurer as soon as possible.

What should I do if my car gets stolen?

Firstly you must contact the police and report the loss to them; they should then provide you with a reference number.  You should then contact your insurer with these details and they will provide you with a procedure to follow.

Will I get any money back if I cancel?

When you purchase your policy you have a cooling off period, and so long as you cancel within this time you will get a full refund of the premium that you paid.   If you cancel the policy after this period, you may be eligible for a refund if you have chosen the annual payment option and you have not had a claim; this amount will be equivalent to the unused portion of your payment. 

Important Note:

The answers above are to be used as a reference guide only and do not substitute or replace your insurance contract, the Product Disclosure Statement (PDS) or Certificate of Insurance.