Third Party Property Damage InsuranceIf you think your car isnâ€™t worth insuring comprehensively, then it may suit your needs to take out cover for Third Party Property Damage Insurance. This covers you for the damage your car might cause to someone elseâ€™s vehicle or property, which if the accident is your fault can prove very costly.
Some of the main questions you need to ask yourself include do you want car insurance in the first place or are you willing to try your luck? Do you want comprehensive cover? Do you want to be covered just for fire and theft or do you want third party property damage insurance?
There is a significant difference in each of these policies and they vary from company to company.
Some of the main ones you need to consider include:
- How much is the Third Party Property Insurance excess?
- Do you want to choose the repairer?
- Do you want loan vehicles if your car is stolen?
- Do you want the policy to cover the car for business use?
- What drivers are covered?
- Is there a limit on towing fees?
- Does it cover damaged property and personal belongings inside the car?
The Australian Insurance Council's Group General Manager for Western Australia and the Northern Territory Daryl Cameron said in 85 per cent of cases policies are bought on price alone, which can be dangerous for people who do not read their policies extremely carefully. He also said if you are not honest with your potential insurer they may refuse to pay out if the time comes.
"It is vital that all known information regarding the vehicle or any intended driver is fully disclosed to the insurer when taking out a policy or when one is up for renewal. If anything changes that may effect your policy you must tell the insurer; It is extremely important, remember you have a duty of disclosure," Mr Cameron said.
"If you smash into the back of a Mercedes, and you forgot to tell your insurance company about your dangerous driving conviction, they may refuse to pay out despite the fact you are covered by them. So be careful otherwise you may have to foot the bill yourself," he warned.
You may not think your car is worth insuring, but what about the damage it could cause to others? Even just a â€œlittle bumpâ€ given to another car can cost thousands of dollars to repair. It happens to the most careful and safe drivers.