There are four (4) primary types of motor vehicle
insurance cover:
Comprehensive Cover
Compulsory Third Party (CTP) Cover
Third Party Property Damage Cover
Third Party Property Damage,
Fire and Theft Cover.
Comprehensive Insurance
When you finance the purchase of your motor vehicle,
it is usually a requirement of the loan contract to
have the security comprehensively insured at all times
during the contract term. As a consequence, you must
organise insurance before delivery of the car by transferring
your current insurance or organising new cover. AMC
is able to provide a competitive insurance quote which
may streamline the process for you.
In general, Comprehensive insurance provides
cover for:
-
Accidental Loss or Damage to the insured vehicle
up to an agreed value (i.e. a set amount the insurer
agrees to with the insured) or market value (i.e.
the cost to replace the vehicle with a vehicle of
the same make, model, age and condition immediately
prior to the loss or damage). Today, most comprehensive
policies are market value policies.
-
Your legal liability for damage to another person’s
property as a result of an accident which is your
fault up to a predefined limit for each event (including
certain legal defence costs).
-
A number of other additional benefits which are
automatically incorporated into the policy such
as towing costs, replacement vehicle cover, emergency
travel & accommodation costs, personal property.
-
Certain optional covers (where agreed) such as
removal of basic excess for windscreen claims, protected
no claim bonus and restricted driver cover.
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Benefits of Comprehensive Insurance
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Protects your finances in the event your vehicle
is damaged, involved in an accident, or stolen.
-
Comprehensive Insurance can be easily financed
into most loans.
-
Comprehensive Insurance is fully transferable.
-
Comprehensive Insurance needs to be renewed every
twelve months so it provides you with the opportunity
to shop around for the best quote.
-
Some comprehensive insurance policies also provide
additional benefits should you need to claim.
-
Comprehensive Insurance can be cancelled and the
premium rebated on a pro-rata basis.
-
The cost of comprehensive insurance is largely
rated based on your driving history.
Compulsory Third Party (CTP)
Insurance
Compulsory Third Party Insurance, or a green slip,
is an insurance policy that provides compensation for
other people injured in an accident when you or the
person driving the insured’s vehicle is the driver
at fault. CTP Insurance is compulsory, and must be taken
out when registering a motor vehicle.
CTP insurance covers:
-
All passengers
-
Other road users, such as drivers, passengers,
pedestrians, cyclists, motor cyclists and pillion
passengers, and
-
Injuries caused through the use of a trailer.
It does not cover:
-
You for personal injury if you are the driver
at fault in an accident, or
-
Damage to property or other vehicles.
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Third Party Property Damage
Insurance
Third Party Property Damage Insurance, otherwise referred
to as Third Party Only, is an insurance policy that
covers your legal liability for damage to another person’s
property as a result of an accident, including the legal
costs and expenses. Most Third Party policies incorporate
a cap of between $5m to $20m for the liability component.
They also usually cover you for loss or damage to your
vehicle arising from an accident caused by the driver
of an uninsured vehicle, up to the maximum limit specified
on the policy.
Third Party Property
Damage, Fire & Theft
Third Party Property Damage, Fire and Theft Insurance
(TPFT) is an insurance policy that, in addition to Third
Party Only cover, also provides cover for damage by
fire to your vehicle if the vehicle is stolen, up to
the market value or agreed value as specified by the
policy. Under this type of policy it is common that
if the vehicle is stolen and found damaged or is damaged
by fire, the insurer will also pay the reasonable cost
of towing the vehicle to the nearest repairer or place
of safety.
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