Last updated on February 13th, 2019 at 12:48 pm
Options of car insurance for teenagers in Australia
There are four main types of car insurance for teenagers in Australia:
- compulsory third party car insurance or more commonly known as CTP Greenslip only cover
- third party property insurance
- third party fire and theft car insurance
- comprehensive car insurance.
Compulsory third party car insurance for teenagers
Most basic form of car insurance for teen drivers and car owners. Covers liability from any personal injury claims by third parties. A compulsory insurance and a condition of motor vehicle registration.
Third party property car insurance for teenagers
Third party property insurance covers property damage to vehicles and property of others in an accident. Property damage to your own car is only covered if the teen is not at fault. Cars damaged in fire or theft will not be covered by the insurance.
Third party, fire and theft car insurance for teenagers
This insurance works as an addition to the basic third party property insurance cover. This insurance provides protection against theft or fire.
Car insurance – Fully comprehensive cover
Comprehensive insurance coverage is the most common insurance policy taken out by Australians. New vehicles are typically insured under this policy as the insurance covers all types of damage to the car as well as full cover for liability against third parties.
In general, most major insurance companies in Australia exclude the following from their insurance policies:
- Tyre damage not resulting from an accident
- Mechanical, structural, electronic or electric failures or breakdowns
- Loss resulting from not being able to use your car such as your income.
- Depreciation, corrosion, or wear and tear
- Loss or damaged caused intentionally by you or by someone acting for you