Car insurance explained in under 3 minutes

Nicola: Hey everyone I'm Nikki Ally: And I'm Ally

Nicola: And we're both a part of the finder insurance team We're going to be honest with you shopping for car insurance can be overwhelming, tedious and at times a bit boring, but it's something that everyone with a car has to do Ally: Luckily we consider reading about car insurance to be one of our favourite pastimes – seriously – so let's cut through the fat It's time to learn about car insurance in under three minutes Nicola: So first we have compulsory third party insurance otherwise known as CTP or green slip

This bad boy is mandatory for every driver in Australia CTP covers your liability for someone else's injuries in an accident So basically if you get into a car crash and the other driver is hospitalised this cover will cover the medical expenses Ally: But CTP won't cover the damages to your car or theirs So if you get into an accident with a flash new Lamborghini, or you're lucky enough to own one then you're gonna have to pay for the damages right out of your own pocket

Unless you've got Nicola: Third party property damage insurance Ally: That's a mouthful! Nicola: This level of cover isn't mandatory but if you want to avoid getting in a financial pickle it's a pretty good idea

Ally: It'll also cover you for any damages you might cause to someone else's vehicle or property as a result of an accident So remember that Lamborghini that we were just talking about? Your insurer should cover you for that – what legends! Nicola: But hold on to your seats guys there's more Unless you've got third party fire and theft policies the chances are that you're still going to be out of pocket after an accident Car insurance policies aren't very cryptic, so as the name suggests you're covered for fire and theft which are two of the more common things that can happen to your car in an accident You'll also be covered for the perks of a third party property damage policy

Ally: It's a pretty good option for those who can't afford a comprehensive policy but need a little bit more protection than a third party property damage policy Not too much, not too little, it's just right Even Goldilocks would approve Nicola: But if you have the budget for it comprehensive car insurance is the way to go This one is basically the bee's knees of car insurance policies

Ally: Bees don't have knees Nicola: Think about is that best mate that's always there to get you out of trouble Ally: This bad boy covers you for a bunch of things: Collision: the cost of repairing or replacing your car plus any damages to other people's property Accidental damage like the time you accidentally backed into the pole in the carpark Severe weather damage like floods, storm damage, hail and more

And third party property damage AKA legal liability Nicola: Many comprehensive policies will also cover you for things like if you lose your keys, need emergency repairs, towing expenses and roadside assistance Also some policies will give you a switch replacement vehicle if your car does need to be repaired overnight So what have we learned? Ally: Number one: you need to have CTP if you want to drive a car Two: third-party property damage policies will cover someone else's Lamborghini but not your own

Three: Goldilocks approves of fire and theft policies, and four: comprehensive is the bee's knees Nicola: But long story short no matter what car insurance policy you decide to take out it's important to compare your options online using finder and get the best value for your money