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All About Car Insurance

Woman is talking to her car insurance company about the car accident

Have you taken car insurance? Or do you want to get insurance for your car but don’t know what the process is? Do you know how it works? 

Let’s figure out all of these queries through this blog.

In this blog, we will discuss each essential thing that you should know about car insurance.

What is Car Insurance?

This is the type of insurance policy that the car owner takes to help reduce the financial costs or provide protection financially if their car is involved in any unfortunate situations such as damage, accident, theft etc. 

How does car insurance work?

Here is the way car insurance companies work:

  • Agreement

 When the car owner takes out the policy, they have signed an agreement with an insurance provider. 

Mainly the agreement is for specific situations and periods ( a year or more than a year) such as Car Stolen, crashes, damage etc. The agreement is for the insurance provider to cover (Contributing money or helping in any particular way) 

  • Payment

The policyholder (Car owner) will require to pay the insurance provider premiums, which payments are made at regular intervals (Yearly or more than a year) 

  • Claim

If something happens to the car (For example, an accident, damage, or theft), a policyholder can claim, which means they can ask the insurance provider company to cover some of the cost or the entire cost of repairing or replacement. 

On the other hand, the policyholder also has insurance excess. 

  • Insurance excess: The insurance excess is when the policyholder has to contribute some of the cost in the event of a claim. 
  • Time & Renew

The insurance policies are generally for a certain period, like a year or more than a year; it depends on the insurer. Once the insurance period expires, a car owner can opt to renew the policy. By renewing, the policy will be extended for another set period. 

After renewing the policy, the price of the premium will change.

Types of car insurance

car accident insurance vector

There are several different types of insurance:

  • Compulsory third party (CTP) insurance 

In Australia, CTP insurance is mandatory for drivers. CTP or green slip insures you against the injuries and deaths of people caused by your driving. It includes other drivers, passengers, motorcyclists, pedestrians etc. 

In simple words, a Compulsory third party provides coverage to the other people that get injured by the accident where you are at fault. 

(CTP does not cover any damages to the vehicle. Which means the repair cost you need to pay.)

  • Third-party property (TPP) car insurance

TPP covers you if your car causes any damage to another or someone’s property. (e.g. Home or vehicle)

For example, if your car crashed into the parking area at your fault, your insurer will cover you for the damages and the property you damage.

TPP is one of the cheapest car insurance available.  

  • Third-party fire and theft (TPF&T )

Third-party fire and theft insurance covers your car if it catches fire or is stolen; it also covers others’ property when you cause the accident. 

  • Comprehensive car insurance

It is the most considerable and expensive car insurance, which provides you protection, that covers, including:

  1. For your car
  2. Other’s property and car damage
  3. Covers you if your vehicle catches fire or theft.

Comprehensive car insurance gives you some additional options, such as Hiring a car while your car is repairing or replacing any of its parts. It also gives you the choice of insuring for “Agreed value” or “Market value.”

When a car is wholly damaged or unsafe to drive after fixing the issues, the repairing cost is more than its actual or market value. Then a car insurance company declared it a “Totaled car.”

Once a car gets the title of “Totaled car”, it’s difficult to find better options. However, you can sell it to the car removal companies and get cash for cars. Junk cars removal Sydney is a great place to sell your totalled vehicle and get quick cash for cars. 

Junk cars removal Sydney company

NO matter if your car is being declared as totalled, we buy a car in any condition. Though, the cash for cars depends on the car’s condition (e.g. if the car has no useful parts, then the cash will depend on its weight which means steel).  Junk cars removal Sydney is a trusted and reliable company in Sydney that offers you the best solution for your old, damaged, junked, unwanted cars etc. We give you quick cash up to $9899 with free pick up service. 

You can connect us through our official website and fill out the free quote form or call us.  

Wrap up!

In this blog, we have mentioned car insurance. The process, type of insurance, and the policies. If you have any queries or doubts, you may leave them on our social media handles. We will come up with such helpful information in future as well. Till then, stay tuned. 

Thanks for Reading!

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