Plenty of car insurance companies call Australia home. That means that you have a good selection of insurers to choose from. Rather than looking for an inexpensive policy, search for a policy that covers all of your needs. When comparing insurers, your coverage expectations are more important than cost alone.

Coverage Considerations

Before you can decide on any one insurer, you need to discern the right type of coverage for you. Essentially, there are three types of car insurance to consider: comprehensive, compulsory third party, and third party property. Here is a quick explanation of all three:

• Comprehensive Coverage: if you get into an automobile accident, comprehensive coverage covers both your vehicle and the vehicle of the person you hit. Repairs are covered on both ends with comprehensive coverage. This type of coverage is nice to have, but it will raise your insurance rates.

• Compulsory Third Party Coverage: this type of insurance is also called “greenslip” insurance. All Australian-registered cars must have compulsory insurance, which makes it the most basic insurance type. This type of coverage only covers personal injuries (it does not include damage to your car or to another car).

• Third Party Property Coverage: this type of policy will cover any damage done to someone else’s property or car. Be aware that Third Party Insurance does not cover damage done to your car.

Combined Insurance Deals

Make no mistake about it, your insurance company should bargain for your business. Ask any insurer you are considering about combination deals. What kind of price can you get if you combine house and car insurance? Most insurers offer discounts to people who combine more than one insurance offering by the same company. If an insurer does not offer this type of discount, move on to an insurer that understands the benefits of combining insurance types.

Premium Perfection

Finding a policy with a low premium may seem like a godsend. Yet, it pays to think about what a lower premium really means. If one inexpensive policy does not cover your needs completely, a lower premium might not be a good idea. Find out what kind of value an insurer places on your car before you settle for a low premium. If you purchase a policy that has a lower premium, you might be in for a big surprise when your company deems your damaged car worthless.

Read Policies Carefully

Find out how long an insurer takes to pay a claim, how many car rental agencies you will have access to, and if there are any additional policy factors that you need to consider. All of this information should be listed in every policy that you gather. Take the time to read through the fine print in order to find the best policy available.