Your Insurance Policy in New South Wales (NSW)  

Insurance Policy in New South Wales (NSW)

Insurance Policy in New South Wales (NSW)


What is the difference between CTP and other types of motor vehicle insurance?

When your car is involved in a collision, Compulsory Third Party (CTP) insurance covers injuries to persons including pedestrians, cyclists, and other road users.  All automobiles that are registered in every State and Territory are required to have CTP. Each jurisdiction has its own program with unique advantages and requirements. You may have a choice of insurance in some states.

CTP does not protect you for theft of your vehicle or its contents, damage to your vehicle, other vehicles, or property, as well as legal liabilities. If car owners do not get additional motor vehicle insurance policies in addition to their CTP coverage, they run the danger of suffering a severe financial and personal loss, maybe amounting to millions of dollars. You can select from three types of insurance: comprehensive, third-party property, and third-party property and theft.



Why do young drivers usually pay higher premiums?

The likelihood of accidents is higher for young, inexperienced, and newly licensed drivers than for drivers with more experience, according to a body of research. Additionally, they are more inclined to drive dangerously and recklessly. Drivers under the age of 25 are disproportionately more likely to be killed or seriously injured in car accidents in Australia. Despite making up only 16% of drivers in NSW, the 2011 Auditor General’s report indicated that teenage drivers accounted for 25% of all fatal accidents. Your automobile insurance rate will be determined by how hazardous the insurance provider deems you to be to insure. Due to the fact that insurers have to cover more claims involving young drivers than experienced ones, young drivers typically pay a higher rate.

Insurance Policy in New South Wales (NSW)


What does market value and agreed value mean?

Whether you insure your car for an agreed value or a market value will affect how much your insurer will pay you in the event of a write-off.

Market Value

The most popular approach used by automobile owners to estimate how much their vehicle should be insured for is market value; this is the sum that your vehicle would fetch on the open market. The insurer chooses this amount.  Due to depreciation and wear and tear, your car’s value decreases over time, therefore market value is typically lower than the agreed value. For instance, if you paid $30,000 for your car and it was a total loss two years later, the market worth might only be $20,000 or less. Whether you insured your automobile for an agreed value or a market value will affect how much your insurer will pay you in the event of a write-off.

Insurance Policy in New South Wales (NSW)


Agreed Value

If your car is insured for an agreed value, you and the insurer have made a written agreement stating how much you will receive in the event that the vehicle is a total loss. Usually, this exceeds market value. Typically, an agreed value policy costs more than a market-value policy. However, because the insurer anticipates that the worth of your car will continue to decline over time, the value may automatically decrease each year when the policy is renewed.


What is an excess and when do I have to pay an excess?

The amount you have to contribute to a claim is known as an excess payment. Excesses on auto insurance contracts come in a variety of forms and may be used in various circumstances. When filing a claim, you occasionally may be required to pay more than one excess. Some excesses, like the fundamental or standard excess, will always be in effect when you file a claim. Some insurers will cover the excess if you can prove that the claim was not your fault and name the responsible party. Others might ask you to cover the excess first before returning the money after the claim and repair processes are complete. The circumstances of your claim will determine any additional types of excess that may be due. These consist of:


  • Age excess, where a higher contribution is made based on the driver’s age
  • When the driver was not listed on the Certificate of Insurance, the Undeclared Driver Excess applies.
  • voluntary excess you’ve chosen to have in order to lower your premium
  • When a motorist is under 25 and hasn’t had their Australian license for more than two years, they are subject to the inexperienced driver excess.
  • Named driver excess, in which one of the drivers on your insurance policy has this amount recorded next to their name
  • imposed or unique excess that your policy mandates

Your insurance documents list the amount and types of excess that you would be required to pay.

Insurance Policy in New South Wales (NSW)


What is a no-claim discount or bonus?

Drivers who go a certain amount of time without filing a claim against their insurance policy are given a no-claims discount. These reductions will differ based on the standards set by your insurance company. When comparing policies, make sure to compare the sort of discount offered and the amount of time you must go without filing a claim in order to qualify. Your no-claims status may be impacted by filing any claim, even if you are entirely blameless. If you move insurers, some insurers will honor the no-claims bonus of the previous insurer.


If personal effects are stolen from my vehicle are they automatically covered?

Personal property like a briefcase, laptop, or mobile device may not be covered by your motor vehicle policy if it can be easily removed from the car and stolen. Ask your insurer what is and is not covered by your coverage. In a perfect world, you shouldn’t leave expensive stuff in your car. Make sure valuables are hidden from view of possible thieves if you must, though. The majority of thefts are opportunistic, so by keeping any valuables out of sight, you significantly lower the likelihood that your belongings will be taken. Some contents policies may cover your personal property even if it is not inside the house when the loss occurs if it is stolen or damaged.

Insurance Policy in New South Wales (NSW)


What should I do if I have an accident?

If you are involved in an accident,

  • If you are on a busy road or highway, move yourself and any passengers to a safe area.
  • If anyone has been hurt, the road is blocked, or if another driver won’t stop or exchange information, dial 000.
  • If a tow truck is needed, you may need to alert the police in some states.

The following information about the other party or parties involved should be noted:

  • Name
  • Phone number
  • Vehicle registration
  • Address
  • License number
  • Insurance details
  • Statement of what happened
  • Note down the names and contact information of any witnesses.
  • Take pictures of the accident scene and the damage to all of the involved automobiles if it’s safe to do so.
  • To discuss your next steps, including transferring your damaged vehicle and, if your policy permits it, using a rental car while yours is being fixed, get in touch with your insurer.


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