Vehicle insurance car insurance, motor insurance, or auto insurance!
Vehicle insurance (also known as car insurance, motor insurance, or auto insurance) is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle. Vehicle insurance may additionally offer financial protection against theft of the vehicle, and against damage to the vehicle sustained from events other than traffic collisions, such as keying, weather or natural disasters, and damage sustained by colliding with stationary objects. The specific terms of vehicle insurance vary with legal regulations in each region.
In many jurisdictions, it is compulsory to have vehicle insurance before using or keeping a motor vehicle on public roads. Most jurisdictions relate insurance to both the car and the driver; however, the degree of each varies greatly.
Several jurisdictions have experimented with a “pay-as-you-drive” insurance plan which utilizes either a tracking device in the vehicle or vehicle diagnostics. This would address issues of uninsured motorists by providing additional options and also charge based on the miles (kilometers) driven, which could theoretically increase the efficiency of the insurance, through streamlined collection.
In Australia, every state has its own Compulsory Third Party (CTP) insurance scheme. CTP covers only personal injury liability in a vehicle accident. Comprehensive and Third Party Property Damage, with or without Fire and Theft insurance, are sold separately.
- Comprehensive insurance covers damages to third-party property and the insured vehicle and property.
- Third Party Property Damage insurance covers damage to third-party property and vehicles, but not the insured vehicle.
- Third Party Property Damage with Fire and Theft insurance covers the insured vehicle against fire and theft as well as third-party property and vehicles.
Compulsory Third Party Insurance
CTP insurance is compulsory in every state in Australia and is paid as part of vehicle registration. It covers the vehicle owner and any person who drives the vehicle against claims for liability for death or injury to people caused by the fault of the vehicle owner or driver. CTP may include any kind of physical harm, bodily injuries and may cover the cost of all reasonable medical treatment for injuries received in the accident, loss of wages, cost of care services and, in some cases, compensation for pain and suffering. Each state in Australia has a different scheme.
Third Party property insurance or Comprehensive insurance covers the third party with the repairing cost of the vehicle, any property damage or medication expenses as a result of an accident by the insured. They are not to be confused with Compulsory Third Party.
In New South Wales, each vehicle must be insured before it can be registered. It is often called a ‘greenslip,’ because of its colour. There are six licensed CTP insurers in New South Wales. Suncorp holds licences for GIO and AAMI and Allianz holds Allianz and CIC Allianz licences. The remaining two licences are held by QBE and NRMA Insurance (NRMA). APIA and Shannons and InsureMyRide insurance also supply CTP insurance licensed by GIO.
A privately provided scheme also applies in the Australian Capital Territory through AAMI, APIA, GIO and NRMA. Vehicle owners pay for CTP as part of their vehicle registration.
In Queensland, CTP is included in the registration fee for a vehicle. There is a choice of private insurer – Allianz, QBE, RACQ and Suncorp and price is government controlled.
In South Australia, since July 2016, CTP is no longer provided by the Motor Accident Commission.The government has now licensed four private insurers – AAMI, Allianz, QBE and SGIC, to offer CTP insurance SA. The scheme allocates one provider for 3 years as part of vehicle registration. After July 2019, vehicle owners can choose a different CTP insurer and new insurers may also enter the market. 
There are three states that do not have a private CTP scheme. In Victoria, the Transport Accident Commission provides CTP through a levy in the vehicle registration fee, known as the TAC charge. A similar scheme exists in Tasmania through the Motor Accidents Insurance Board. A similar scheme applies in Western Australia, through the Insurance Commission of Western Australia (ICWA).