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5 Reasons To Buy Car Insurance When Driving Through Australia

Insurance can be pretty expensive. So you might be wondering if it’s really important to purchase. Well, let’s evaluate 5 reasons to buy car insurance when driving through Australia!

Blog / General / 2023 January 03, 2023

Car insurance protects you against financial loss in case of an accident. These agreements between the car owner and the insurance company are your only backup when things go down (unless you’re a multi-millionaire and don’t mind spending thousands on damage recovery).

That said, insurance can be pretty expensive. So you might be wondering if it’s really important to purchase. Well, let’s evaluate 5 reasons to buy car insurance when driving through Australia!

5 Reasons To Buy Car Insurance In Australia

  • It's A Legal Requirement

Before we jump onto other reasons, know that you can’t run away from buying car insurance in Australia. It’s a legal requirement to have CTP (compulsory third-party) insurance, which means you can’t drive without it.

Typically, CTP insurance is issued at the time of car registration. While some states provide the insurance from an official provider, others may give you a choice. You can go through a list of verified insurance providers and select the most suitable one within your budget.

There might also be some differences in CTP policies. So, it’s best to check your state’s legal car insurance requirements before getting one. 

  • Australia Has Harsh Weather Conditions

Car insurance policies do not cover damages only from accidents and theft. They also cover any financial loss that occurs due to weather conditions.

Unfortunately, Australia is a land of harsh weather conditions. Its temperature ranges from 40 degrees Celsius in desert regions to below-freezing in upper southeast areas. In some areas, you can also experience extreme temperature variations within the same day.

You’ll also come across some common natural disasters when living in Australia. These include bushfires, floods, dust storms, and even tropical cyclones!

And when it comes to a natural disaster, it might be impossible to keep a car safe from damage, which is why car insurance becomes necessary.

Keep in mind that CTP — or third-party — insurance does not cover damage from accidents, theft, and natural disasters. It’s meant to only pay for damages that others suffer as a result of your fault.

So if you want to keep your car safe from natural disasters, you’ll have to purchase comprehensive car coverage from a provider like Rollin Insurance

  • There's An Abundance Of Native Animals In Australia 

It’s not just the weather that necessitates car insurance in Australia. The land is home to 200,000+ animal species. In fact, it has been titled one of the biggest megadiverse nations in the world. 

Kangaroos, wombats, koalas, platypi, and crocodiles are a common sight. They’re openly roaming around in the woods, green patches, and lakesides, so you need to be very careful when driving.

These animals typically come out at dawn, dusk, or nighttime. However, at times, they would run onto the road from nowhere. This is especially true for highways and rural areas where roads aren’t fenced.

Unfortunately, accidents involving animals can cause significant damage to your car. You would need car insurance to cope with the financial losses involved in such incidents. And if you accidentally injure someone’s pet or livestock, the insurance will help you handle lawsuits too.

  • The Roads In Remote Areas Are Poorly Developed 

Around 30% of Australia’s population lives in remote or rural areas. And the road network in these regions isn’t really the best.

There are potholes, uneven surfaces, and unfenced roads that can damage your car. Even if you try to drive safely, chances are that the gravel on the road will fly and scratch the car’s body badly as you take an Australian road trip

But when you have car insurance, there’s no need to stress about the repair and maintenance work that comes with driving your car in Australia. 

  • It Affects A Car's Resale Value 

Another amazing benefit of buying car insurance is that it can double the resale value of your car. However, if your car insurance records have a history of constant repairs and damages, the new owner might actually pay less. This happens because the insurance history serves as a record of how the car has been kept, and you can’t hide what happened!

Make Sure To Buy Car Insurance When Driving In Australia
All in all, having car insurance while driving through Australia is very important. Not only is it mandatory by law, but the country also has extreme weather conditions and countless open animals. 

Plus, the rural side roads aren’t developed enough to drive without causing some sort of damage to your car. Since repairs are inevitable, car insurance makes complete sense in Australia.

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