This blog post is made possible by Sara Stringer, site supporter.
When thinking of the many do's and don'ts of running your business, one definite "don't" is skimping on your car insurance coverage. If you are like a lot of "mum-trepreneurs," you not only use your vehicle to usher your family around, it is also an integral part of your business. Keeping it properly insured guarantees that you are covered if something should happen.
Additionally, vehicle insurance laws in Australia require you to have some form of car insurance. If you don't have enough coverage, or if you are not covered at all, you could end up losing your vehicle, or racking up hefty fines and court costs.
There are four different types of insurance coverage available to residents of Australia:
Third Party Only (or CTP):
This is the absolute minimum coverage required by law. It only covers injury from an automobile collision. It will not cover repair or replacement costs for the insured vehicle, and neither does it offer other perks like roadside assistance.
Third Party Property:
Third Party Property insurance covers damage to someone else's vehicle, if you are in an accident. It will not cover damage to your own vehicle.
Third Party Fire and Theft:
This is similar to the Third Party Only scheme but, as the title implies, it offers additional coverage should your vehicle be stolen or damaged by fire. Like the standard Third Party Only scheme, it does not offer additional perks, and may not cover the replacement cost of the insured vehicle.
All of these types of schemes are adequate if you have an older vehicle where the cost of the monthly premiums and deductible is more than the value of the car.
How you obtain Third Party insurance depends on where you live. If you live in New South Wales, you can get CTO insurance through several vendors; whereas in the Australian Capital Territory, you can only get CTP through Insurance Australia Ltd. Check with your local department of transportation to determine where to purchase your CTP.
If you have a newer vehicle, or if the value of your vehicle is such that you would not be able to replace it if it were damaged, you should consider a comprehensive plan with a top auto insurance company.
The Comprehensive Scheme:
A comprehensive scheme covers everything in the Third Party Only scheme, and provides additional coverage for theft, fire, and other damage to the insured vehicle. Comprehensive schemes also have options for roadside assistance, car rentals, and even full replacement costs if the insured vehicle is totaled.
All drivers in Australia must have some form of insurance to drive their vehicles. If you are caught driving without insurance, you could face hefty fines, be required to appear in court, and even have your vehicle impounded.
The only way to avoid these fines, and court costs, is to make sure you can provide proof of insurance. For the best results, keep a copy of your insurance documentation in your glove box, or carry it in your wallet so that you can produce it on demand.
Sara is a freelance writer who enjoys blogging about lifestyle, relationships, and life as a woman. In her spare time, she enjoys soaking up the sunshine with her husband and two kids.
Broken down car image courtesy of anankkml / www.freedigitalphotos.net