Things to Know About Car Insurance

Types of car insurance

Compulsory third party (CTP) insurance is the most important type of car insurance. It covers death and injury to people if you are involved in an accident. 

Additional types of car insurance include:

  • Third party property insurance - covers damage to other people's property (e.g. their car or home) and your own legal costs
  • Third party, fire and theft insurance - covers damage to other people's property, and provides limited cover for damage to your own car caused by theft or fire
  • Comprehensive insurance - covers damage to your own car and other people's property if your car is in an accident (including fire) as well as theft

The table below shows the coverage offered by different types of insurance.

Types of Insurance

What type of car insurance do you need?

By law you are required to have compulsory third party (CTP) insurance. This is sometimes known as a green slip.

On top of CTP cover, decide what level of additional cover you need. Ask yourself:

  • If I crash into a luxury sports car will I be able to afford the repairs?
  • Is my car likely to be broken into?
  • How will I get around if my car is stolen or written off?

Car insurance - Who and What is coveredFor most people, having (at least) third party property insurance is the way to go because it means you won't have to pay a hefty sum for someone else's damaged vehicle.

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