INTERMEDIATE - UNIT 7 (page 1)

DIFFERENT KINDS OF CAR INSURANCE

THREE KINDS OF CAR INSURANCE
Regulations are a little different in the various states and territories, but basically there are three different kinds of car insurance in Australia. Everyone must have Compulsory Third Party (CTP). The other two kinds are optional. They are Third Party Property and Comprehensive insurance.

1. COMPULSORY THIRD PARTY (CTP)
CTP covers you for any injury you cause to other people. If you injure someone, your insurance company will pay their medical expenses. You MUST have this kind of insurance.

2. THIRD PARTY PROPERTY
Some people think that their car is not worth much so it isn't worth getting non-compulsory insurance. They forget that if they damage another car they may have to pay thousands of dollars in repair costs. If they run into a twenty year old Corolla, the cost may be a few thousand dollars. If they run into a Porsche or a Jaguar, they may have to pay tens of thousands of dollars. Third Party Property covers you for damage you cause to someone else's car.

3. COMPREHENSIVE
This is the most expensive kind of insurance. If you take out comprehensive insurance, you are covered for damage you cause to someone else's car and damage you cause to your own car. If your car is damaged, but you don't know who did it, you are also covered.



QUIZ

Read the sentences and select true or false.

true   false 1. You must have Compulsory Third Party insurance.   
true   false 2. You must have Third Party Property insurance.   
true   false 3. Compulsory Third Party Insurance is the most expensive.   
true   false 4. Comprehensive insurance is the most expensive.   
true   false 5. Comprehensive covers you for damage to someone else's car, but not damage to your car.   
true   false 6. Third Party Property covers you for damage to someone else's car.   
true   false 7. Third party Property doesn't cover you for damage to your car.   
true   false 8. You must have Comprehensive insurance.   

Score =



 

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