After you are done with finding a place to live, shipping your stuff, and securing a job, the other thing you will need is a means of commuting. Commutes in large Australian cities may not be a problem since the cities have significantly well-managed public transport systems.
But the public transport system has its limitations so you will eventually need to buy a car which comes with buying insurance. While there may be some similarities between car insurance laws in the US and Australia, there are also quite some differences. This guide explores some of the similarities and differences you need to know.
Similarities
Minimum Coverage
Most states in America require drivers to have third-party coverage that covers third-party injuries and property damage in the event of an accident where the insurance holder is at fault.
In Australia, drivers, too, are required to have minimum coverage, also known as a compulsory third party (CTP). Like in the US, this cover ensures that third parties get compensation for damages suffered in an accident where the driver is at fault.
Factors Affecting the Cost of Insurance
The factors that affect the cost of insurance in both countries are largely the same. For example, in both countries, gender, age, model of the car, driving history, and location can impact the cost of insurance.
Insurance companies in both countries also offer similar discounts as incentives to their clients which can also affect the cost of insurance. For instance, you can enjoy cheaper auto insurance rates in both countries for having a clean driving record or taking a defensive driving course.
Differences
Application of Insurance Laws
In the US, insurance requirements vary by state. For example, Virginia and New Hampshire do not have a minimum driver coverage requirement. Also, the definition of minimum requirement can vary by state. For instance, in no-fault states, the driver must carry the minimum personal injury protection cover that caters to their injuries in the event of an accident.
All territories in Australia have CPT as the minimum requirement for all drivers on the road. There may be some differences in the insurance registration processes in the different territories, but the law applies the same way across the country.
The Cost of Insurance
The cost of buying a car in Australia is comparable to the US, but only if you are buying an average car. If you are going for a luxury car, you will have to pay luxury car tax which can drive the costs of the car significantly high.
With the high cost of your car comes a high cost of replacement in the event of an accident. Consequently, insurance companies tend to charge more for luxury cars in AU than in America. Also, it is essential to note that the cost of insurance can vary with the territory.
Getting a Car Insurance Quote in Australia
The worst mistake you can make when insuring your car for the first time in Australia is taking the minimum compulsory insurance deal offered by the first insurer you come across. Besides increasing the chances of securing a raw deal, carrying CTP insurance can cause a huge financial impact if you get involved in an accident.
Ideally, you need to carry comprehensive auto insurance and take your time to shop around and make comparisons before picking the best option. But you have to be careful not to compromise the quality of the services you get.
Getting quotes from all providers in the market can be hectic, and nobody wants to do that kind of work. The good news is that you can leverage comprehensive insurance comparison resources like https://www.iselect.com.au/car-insurance/comprehensive-insurance/, which does the hard work of eliminating the bad apples to leave you with quotes from a short list of the best providers in a specific region.
Final Words
Going by this guide, you may not feel much difference regarding car insurance after shifting to Australia. Your biggest shocker will probably be on the road because you will have to get used to staying on the left side of the road.
