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5 Reasons Why Vehicle Insurance is a Must

Aug 27, 2018 | Insights

Insurance can save you thousands of dollars in repairs and parts. But there’s more to insurance than that…

You may wonder, “Why should I renew my vehicle insurance if I’ve never had a need to claim it?”

If you think about it this way, insurance will seem like an unnecessary expense. Regardless of whether you are the safest driver in Australia, vehicle insurance is a must. Not making a decision about vehicle insurance, is a BIG decision. To put it simply, insurance is a small price to pay for security and not just for your vehicle.

Today we list 5 Reasons Why Vehicle Insurance is a Must.

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1 – Compulsory Third Party (CTP) Insurance is required by Law

Each state requires vehicle owners to hold CTP (in NSW this is known as a Green Slip, in Victoria as the Transport Accident Charge). This insurance covers any person you may injure while driving (such as other drivers, their passengers, and pedestrians).
It is illegal to drive without this form of insurance. So, if you need only one reason for vehicle insurance, this is the one.

2 – Comprehensive Insurance Covers the Cost of Damages to Your Vehicle

Cars, motorcycles, trucks all represent a significant expense and investment. It’s important to remember that CTP does not cover any damages your vehicle may incur. Comprehensive insurance can save you thousands of dollars in repairs and parts.
There are varying degrees of Comprehensive insurance. As such, many companies offer a wide range of competitive insurance options. Comprehensive is the highest level of insurance for your vehicle.

3 – Third Party Insurance Offers an Additional Layer of Coverage

There are variations of Third Party insurance. Traditionally it covers the damages to other people’s vehicles and property but not your vehicle. You may choose to only acquire Third Party Insurance.
Alternatively, you may wish to secure Third Party Insurance which protects your vehicle from theft, damage from a third party, or environmental damage. There are various degrees of cover which you can opt for depending on your preferences.

4 – Insurance Covers You Against Bad Drivers surprise

You may think, “I’m a safe driver. I don’t need insurance to cover my vehicle.”
Even if you are a safe driver, that might not be case for other drivers. There’s no way of predicting what other drivers might do. If your vehicle is damaged, you may end up paying hefty repair costs.

5 – Small Price to Pay for Financial Security 

To recap, insurance is a small price to pay. Whether you schedule your insurance on a monthly or annual basis, you can rest assured that varying levels of vehicle insurance will potentially save you thousands of dollars in parts and repairs.
We hope our 5 Reasons Why Vehicle Insurance is a Must has provided insight into the value of vehicle insurance.

The information contained in this blog is accurate only at the date of publication. 

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Makala Elliott

Makala is the Marketing Manager at Finance One. She has worked in the Finance and Lending industry for over 10 years, gathering a wealth of experience. She is passionate about helping Australians get back on track with their finances by passing on her knowledge.

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