Motor Vehicle Insurance Guide

What is Motor Vehicle Insurance?

Motor vehicle insurance covers damage to your car and liability if you’re at fault in an accident. In Australia, you must have at least third-party liability insurance by law.

Types of Motor Insurance

Third-Party Liability (Compulsory):

• Covers damage you cause to other vehicles or property
• Required by law
• Doesn’t cover damage to your own car

Third-Party Fire & Theft:

• Covers third-party liability PLUS
• Covers your car if it’s damaged by fire
• Covers your car if it’s stolen
• Doesn’t cover collision damage

Comprehensive:

• Covers third-party liability
• Covers all damage to your car (collision, fire, theft, weather, vandalism)
• Usually includes legal liability coverage
• Most expensive option

What Affects Your Premium?

• Car make, model, and age
• Your driving history
• Your age and experience
• Where you live
• Annual kilometers driven
• Excess amount you choose

Important Terms

Excess: The amount you pay towards a claim (higher excess = lower premiums)

No Claim Discount: Discount for not making claims (usually 30-40%)

Agreed Value: You agree on car value; if total loss, you get that amount

Market Value: Insurer decides value based on market (may be less than you expect)

Your Rights

• You must declare all known information when applying
• If you make a claim, insurer must respond within reasonable timeframe
• If unhappy with claim decision, you can dispute through ombudsman

When to Get Professional Help

If your claim is denied and you believe it’s unfair, contact the insurance ombudsman or seek legal advice.