When you decide to purchase a used vehicle, you need to find out information about its insurance and finance status. You need to know that all car owners must have compulsory third party insurance also called a green slip.
The compulsory third party insurance policy is associated with the car and not the owner. Therefore, when you complete the purchase and transfer the registration and ownership, the compulsory third party insurance policy can be transferred to you. This post discusses the types of car insurance for a used car.
Compulsory third party insurance
You need to get compulsory third-party insurance from Youi before you decide to register your car. Some states and territories in Australia tend to include it in the registration fee. Therefore, you should check how your territory or state handles it.
The compulsory third-party car insurance usually covers the costs for the injuries you cause to other people in a car accident. If the car you want to purchase has an active registration, they can transfer the compulsory third-party insurance to you alongside the ownership and rego.
As explained earlier, this is because compulsory third-party insurance policy is issued to the car and not the car owner. When an ownership transfer happens and they attach your details to the car, the compulsory third-party insurance can also be transferred. Therefore, you must ensure that you check the requirements of compulsory third-party insurance in your territory or state. This is because inadequate coverage may lead to fines.
Third-party property insurance
Compulsory third party insurance can cover injuries to third parties when you are involved in a vehicle accident, but third-party property insurance usually covers your costs when you damage another person’s property or car. Keep in mind that third-party property insurance doesn’t cover your car. You should also consider uninsured car coverage. To a limited extent, this insurance can give you coverage for the damages to your vehicle caused by an uninsured driver.
Another type of third-party insurance is called third-party fire and theft insurance. This insurance covers damages to your car. It’s crucial to read the fine prints in the policy booklet as well as the product disclosure statement to make sure that you understand the insurance policy you want to get. There can be various conditions like people responsible for driving the vehicle you intend to insure which you can find in these types of documents.
Comprehensive insurance
The highest level of coverage you can find with car insurance is comprehensive insurance. It offers coverage from a wide range of damage and loss to your car, you, and other people.
You should remember that the premium is considered to be the most expensive car insurance policy. Its cost is usually determined by several factors, such as your age, claims history, and many more. These policies cannot be transferred between car owners, but they can be transferred between vehicles. Therefore, if you have comprehensive car insurance, then you can transfer it to your new car or even add the new vehicle to the policy.