New Cars

Common Questions asked When Purchasing Car Insurance


In the process of purchasing a property such as a car or a motorcycle, placing them under an insurance cover is necessary. Even so, depending on the regulatory provisions concerning motorists, each state has varying requirements for obligatory insurance.

Some common questions arise especially when purchasing  compulsory third party insurance NSW. Many do ask if it is necessary to have one in Australia. According to the law, every motorist must have it before the cars are registered and legally driven on the roads.

The third party property car insurance involves three parties. The first who is the driver of the vehicle that is found at fault, the second is the insurer of the car at fault, and lastly, the third is the person killed or injured in the accident.

Another common question on what this insurance covers and how it can be paid for. The cover protects you explicitly against compensation claims that have been made against you or the car. This comes when you are partly or wholly at fault for killing or injuring another person, i.e. a pedestrian, driver or a passenger in an accident.

When it comes to payment of the cover, this wholly lies on the Australian laws whereby, you pay for the assurance as part of the car registration fee. In other cases, it can also be paid as a separate fee.

In the case of you being injured in the car that you have caused an accident with, you can be able to claim compensation from the company where you bought the cover from. On inquiries on whether you will have to pay for repairs to the other person’s car if you caused an accident, a reasonable cost for car damage or its market value, towing costs and demurrage will be needed.