If you are travelling through Australia on an extended holiday or during a gap year, it is often customary to buy a car or a caravan and drive through this scenic and expansive land. However, if you are going to be buying and driving a car in Australia, you need to understand your insurance obligations.
Here's what to consider:
1. Vehicle registration includes very basic coverage.
If you register a car or if you buy a car that is registered, there is insurance built into the registration. This is compulsory third party insurance. If you are in an accident, it covers the cost of compensating victims, but unfortunately, it does not offer any coverage to the person who caused the accident.
For example, if you are the driver and you fail to stop at a stop sign and crash, the compulsory third party insurance will cover the cost of damage to the passengers in the car as well as to other victims in other cars or pedestrians.
2. You need additional coverage to protect yourself.
As explained above, compulsory third-party coverage doesn't offer you, the driver, the coverage you need if you cause an accident. Because of that, you may want to talk with an insurance agent about booking supplemental coverage. In addition, you may want to augment your car insurance with medical insurance designed for travellers.
3. Compulsory third party insurance doesn't include coverage for property damage.
While compulsory third party insurance covers victims, it does not cover property damage. If you damage your car or another driver's car, the compulsory policy you get with your car registration does not cover those expenses.
Instead, you need to talk with an auto insurance agent about third party property damage car insurance.
4. You may need an international license.
In addition to booking car insurance on the vehicle you buy in Australia, you also need to make sure that you have the right license. Throughout most of the country, you can use an overseas driving license. This means you can use your license from your home country.
However, in some areas such as the Northern Territory, you need an international license. If you are in an accident and you are not licensed correctly, that may negate your insurance policy. Be sure to talk with your insurance agent about these issues before booking your policy.
For more tips and facts about car insurance for travellers and non-residents, contact an insurance agent, like those at National Corporate Broking Pty Ltd.
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8 February 2016
If you want to thrive, you need to understand how money makes the world go 'round. Hi, my name is Martha, and I love writing about money. I used to work as a financial adviser, and now, I am launching a career as a day trader. In this blog, I want to share expert tips and advice for people who are interested in learning about money. I plan to write about everything from saving money, to investing money to understanding how it works. I invite you to explore my blog, and if these tips and ideas help you, please share my posts. Thank you for reading!