I have recently attended a number of collisions where the at-fault drivers have no insurance, or were mistakenly of the belief that their insurance would cover the damage sustained from the collision.
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In NSW there are basically three covers of insurance. They are: compulsory third party (CTP) insurance, third party property damage and comprehensive car insurance
Compulsory Third Party (CTP): Commonly known as a green slip, this is compulsory before paying your registration. CTP gives you protection against claims for compensation if you injure or kill someone in a motor vehicle accident. CTP doesn't insure against the cost of repairs to any vehicles or property - yours or anyone else's. CTP insurance alone leaves you at significant financial risk in the event that you damage a vehicle or other property belonging to someone else.
Third Party Property: This is the most basic form of optional car insurance, and helps to provide you with financial cover if you cause damage to property rather than a person. Third party property covers damage caused by your car to another people's property. It will also cover your legal costs if you become embroiled in legal proceedings as a result of the damage caused. It does not cover the cost of any repairs or replacement of your own car. This is the minimum insurance that is recommended for all drivers.
Comprehensive Car Insurance: This is the top-level insurance cover option and will certainly give you the greatest peace of mind. It covers everything mentioned in the previous insurance options above, and in addition it covers accidental damage to your own car, irrespective of who is at fault.
The purchase of insurance is a personal and financial matter for all vehicle owners to make for themselves. However, having third party property insurance is highly recommended, as a minimum, to cover the cost of repairing the other drivers vehicle and any property that is damaged if you are at fault. Third party property could, if you have a collision save you tens of thousands of dollars.
