Motor Vehicle Insurance

There are four (4) primary types of motor vehicle insurance cover:

  1. Comprehensive Cover,
  2. Compulsory Third Party (CTP) Cover,
  3. Third Party Property Damage Cover, and
  4. Third Party Property Damage, Fire and Theft Cover.

1. Comprehensive Insurance

When you finance the purchase of your motor vehicle, it is usually a requirement of the loan contract to have the security comprehensively insured at all times during the contract term. As a consequence, you must organise insurance before delivery of the car by transferring your current insurance or organising new cover. UFS is able to provide a competitive insurance quote which may streamline the process for you.

In general, Comprehensive insurance provides cover for:

  • Accidental Loss or Damage to the insured vehicle up to an agreed value (ie. a set amount the insurer agrees to with the insured) or market value (ie. the cost to replace the vehicle with a vehicle of the same make, model, age and condition immediately prior to the loss or damage). Today, most comprehensive policies are market value policies.
  • Your legal liability for damage to another person's property as a result of an accident which is your fault up to a predefined limit for each event (including certain legal defence costs),
  • A number of other additional benefits which are automatically incorporated into the policy such as towing costs, replacement vehicle cover, emergency travel & accommodation costs, personal property.
  • Certain optional covers (where agreed) such as removal of basic excess for windscreen claims, protected no claim bonus and restricted driver cover.

Benefits of Comprehensive Insurance

  • Protects your finances in the event your vehicle is damaged, involved in an accident, or stolen.
  • Comprehensive Insurance can be easily financed into most loans.
  • Comprehensive Insurance is fully transferable.
  • Comprehensive Insurance needs to be renewed every twelve months so it provides you with the opportunity to shop around for the best quote.
  • Some comprehensive insurance policies also provide additional benefits should you need to claim.
  • Comprehensive Insurance can be cancelled and the premium rebated on a pro-rata basis.
  • The cost of comprehensive insurance is largely rated based on your driving history.
     

2. Compulsory Third Party (CTP) Insurance

Compulsory Third Party Insurance, or a green slip, is an insurance policy that provides compensation for other people injured in an accident when you or the person driving the insured's vehicle is the driver at fault. CTP Insurance is compulsory, and must be taken out when registering a motor vehicle.

CTP insurance covers:

  • All passengers,
  • other road users, such as drivers, passengers, pedestrians, cyclists, motor cyclists and pillion passengers, and
  • Injuries caused through the use of a trailer.

It does not cover:

  • The insured for personal injury if they are the driver at fault in an accident, or
  • Damage to property or other vehicles.

3. Third Party Property Damage Insurance

Third Party Property Damage Insurance, otherwise referred to as Third Party Only, is an insurance policy that covers the insureds legal liability for damage to another person’s property as a result of an accident, including the legal costs and expenses. Most Third Party policies incorporate a cap of between $5m to $20m for the liability component. They also usually cover the insured for loss or damage to their vehicle arising from an accident caused by the driver of an uninsured vehicle, up to the maximum limit specified on the policy.

4. Third Party Property Damage, Fire and Theft Insurance

Third Party Property Damage, Fire and Theft Insurance (TPFT) is an insurance policy that, in addition to Third Party Only cover, also provides cover for damage by fire to the insured’s vehicle if the vehicle is stolen, up to the market value or agreed value as specified by the policy. Under this type of policy it is common that if the vehicle is stolen and found damaged or is damaged by fire, the insurer will also pay the reasonable cost of towing the vehicle to the nearest repairer or place of safety.