What Are These Car Insurance Options and Why Do I Need Them?
As a new driver the amount of insurance options can be overwhelming, not to mention seeming like a huge amount of money. But luckily the insurance does something pretty good: it helps fund the insurance commission so if you are in a motor vehicle accident you can claim some of the costs of recovering from your injury.
Compulsory third party insurance (also known as a green slip)
Compulsory third party insurance covers damage to people. The government requires that you take this out yearly to drive. You can claim against this if you are in a car accident and get an injury, either as driver or a passenger (or pedestrian or a cyclist) or are dependent on someone who is injured in a car accident. The claims can cover medical costs, loss of income and loss of time.
Third party insurance (fire, property and theft)
This is another kind of third party insurance but covers you for any damage you do to another vehicle, or if you car catches fire, or is stolen. This is an extremely worthwhile investment as even if you have a car worth very little if you manage to hit an expensive car this insurance will cover the damage to their car.
If you do not have insurance the other driver can sue you and their motor vehicle accident lawyer can pursue you for other property to pay any damages or in some cases your parents property.
Before you can make a claim however you need to pay the first portion of the claim, which is called the excess which is often a few hundred dollars.
Comprehensive insurance
Comprehensive insurance covers you for damage to your own vehicle when you have an accident. Again you need to pay an excess before you can make a claim, which is often higher for younger drivers and the annual premiums can be substantial for young drivers. You need to make a personal calculation about whether the annual cost is worth the risk of you fully writing off (causing damage greater than the total value of) your car.
If you are required to attend to court as your insurance company is denying your claim you should hire an experienced motor vehicle accident lawyer to put forward your case in court. They can help you argue you case and provide any mitigating circumstances around your claim. They can also fight for you based on the insurance coverage you have to ensure that you aren't asked to pay more than you're due.