Vehicle insurance

Whether it’s your first car purchase or your fifth truck, motor insurance is pretty important. In fact, no matter what vehicle you fancy albeit, motorbike, scooter or pickup truck, you’re going to need to think long and hard before making your vehicle insurance. But don’t think too hard about it!

The good news is Mozo’s here to help you along and give you some quick tips to point you in the right direction. So let’s get to it!

Is CTP insurance and Greenslip the same thing?

Yes. Yes it is. Although CTP stands for Compulsory Third Party insurance, we’re not exactly sure how ‘greenslip’ came to mean exactly the same thing, but it does. Each state and territory of Australia will reference Compulsory third party with either one when you register your vehicle, so keep an ear out if you’re moving interstate and registering your car in a different state.

You absolutely cannot drive any type of vehicle in Australia without paying your CTP first. Then it’s up to you whether you’re going to get more cover like:

• basic third party or
• comprehensive.

What’s Mozo’s opinion? We personally feel that the only way to stay ahead of the money game is to protect your dollars at every situation. It may seem like a waste of money throwing it at an insurance that is not compulsory. But think about how much money a car repair will cost. Thousands if not  tens of thousands. No matter how confident a driver you are, you can’t predict the future. We strongly recommend that you take one of these vehicle insurance options up. (Our personal favourite is comprehensive, but don’t tell anyone).

So what other insurance do I need for my wheels?

You’re gonna want insurance for more than just your wheels! You know what we mean. But isn’t it nice to know that purchasing insurance beyond the compulsory CTP is actually buying you peace of mind? We think so anyway. Read on to find out more on choosing your next step:

Third party property vehicle insurance

If you can’t afford comprehensive vehicle insurance just now or feel that your vehicle is not worth covering, and still want to purchase insurance in case you damage other property in an accident, then you can opt for the less expensive and very basic third party property insurance.

So if you hit a really expensive car, by accident of course, then all you have to do is pay the excess and the insurance company will pay to repair the car you hit. The amount your insurer will cover you for will be dependant on the product you purchase and the amount agreed in your contract. Make sure you’re aware of how much you’re entitled to! If you hit a Jag, will you be covered?

What about your car? Well, let’s just say there’s very little your insurer can do for you if you don’t opt for the more extensive car insurance.

Comprehensive auto insurance

So you’ve just paid for your tropical holiday and you’ve got $1800 cash leftover to last you about 10 days. That should do it. You’ve always got your credit card incase there’s some cheeky tourism spending to do. Why not? You’ve worked hard for it! You’re daydreaming about the palm trees and driving home from the shops to pack your bags and get ready to fly out in the next couple of days. Then the unspeakable. You didn’t check your blind spot before moving out from the kerb and sideswiped a car as it moves forward. Luckily, just one car. Luckily no one is hurt. But there goes half your spending money. You are insured, aren’t you?

See why Mozo prefers comprehensive to basic third party? It’s really the highest level of insurance you can get, hence being called comprehensive. It really speaks for itself. Afterall, accidents can happen when you least expect it to. In fact, who expects to cause an accident? No one. Just a silly saying.

For peace of mind and if you can afford comprehensive over basic third party, we can’t recommend it enough, because at the end of the day, no one can afford not to be insured. Know what we mean? To see how you can best protect your vehicle, check out our car insurance comparison.

I don’t ride my motorbike much. Do I still need insurance?

Hells yes! It doesn’t matter if you’re leading an annual charity convoy with your wheels or if you drive everyday, you’d be pretty silly not to cover yourself with some sort of car or vehicle insurance!

There’s different types of vehicle insurance you need to be aware of. The compulsory one is CTP, but you get that. Then there’s the option: basic third party property or comprehensive. If your motorbike, car, scooter or truck isn’t worth much, then you may just want to opt in for basic third party.

If you don’t even purchase basic third party motor insurance, then you could be liable for thousands upon thousands of dollars out of pocket if you’re found to be at fault in an accident. Do you have that sort of money under the mattress? No? Then your best bet is to purchase one of the two.

Truck insurance

‘I’ve been driving trucks for a long time. I’m a good driver and I don’t need insurance.’

Now hold on a minute! It doesn’t matter how long or little you’ve been driving trucks for, nor does it matter if you’re driving a 1 tonne or 10 tonne truck, you’re going to need insurance. So you really haven’t been in an accident for the past 20 years? You’re a pretty lucky driver. We’re not saying that you’re destined to be in one, it’s just that you never know. Why take the risk?

Sometimes considered to be ‘commercial motor insurance’, your trusty truck is just that - a trusty vehicle you rely on, depend on and need to get things done. If it’s used to earn your bread and butter, wouldn’t you want the best of it? In the end, it doesn't matter if it’s the garden ute, the weekend vintage pick-up truck or even an earth-mover, you really should make an enquiry about securing the best deal for you.

While you're at it, look at how much comprehensive cover will be. If it seems really expensive, then opt to pay monthly to help with your budget.

Remember: doesn’t matter what vehicle you drive or how much motor insurance you’re paying - if you’ve caused an accident, found at fault and have been tested for illegal drugs or are over the alcohol limit, your insurance will be deemed void and you will foot the bill.