Is it important to have car insurance?
In Australia, it’s mandatory to have Compulsory Third Party (CTP) Insurance. CTP only covers you for injury-related costs for which you may be liable if you cause an accident while driving, and not for things like damage to your car or other people’s cars and property.
Whether you buy additional car insurance on top of your CTP is completely up to you. However, car insurance can give you peace of mind that if you have an accident, you might not have to fork out so much for repairs or replacing your car. Even if you can afford to replace your car outright should you ever need to, you may accidentally run into a car that costs a lot more to repair or replace. If you do, you might be liable for thousands of dollars in repairs. The right car insurance can ensure that, if something like that does happen, you may only have to pay the car insurance excess instead of the full costs of the damage