Car insurance need not be confusing. There are many aspects including the different types of motor insurance but within each type or category, the rules are clear and straight forward. You must have the CTP or compulsory third party insurance and this you pay with your registration of the vehicle. But then you face several options. Comprehensive car insurance is there to look after your vehicle and possibly other’s property. Third party insurance is there to protect you should your vehicle damage someone else’s vehicle or property. There are arguments, strong arguments in support of you having the appropriate comprehensive and third party insurance. Let’s look at what may and often does happen. You purchase a vehicle and it has an immediate value. This will usually depreciate over time but let’s say the vehicle is worth $10,000. Now let us consider two scenarios. If you have no comprehensive car insurance and you have an accident by crashing into a tree or wall and your car is extensively damaged, what will you do? Assuming you were not drunk or driving dangerously, you will probably not be charged with any offence and you will seek to have your car repaired. But car repairs can be costly. Your car is no longer roadworthy so repairs are essential. But if you have no comprehensive car insurance, you will have to pay for the repairs and any damage to third party property. Your vehicle worth $10,000 at the time of the accident may cost $5000 or more to repair. In our second scenario, let us assume your vehicle collides with another car and you are at fault. The driver of the other car will want their car repaired by your insurer or, at the very least; they will want you to pay for the damage you caused. If you have no comprehensive car insurance you will pay for your own repairs and theirs.. The matter gets serious if the other car is new and expensive. That could involve a very high repair bill. You can also take out third party insurance against your car being stolen or damaged. A stolen vehicle is just that but what if your car catches fire and is damaged or destroyed? There are different types of car insurance and you should be aware of what each offers. Should I insure? It’s up to you, but on the evidence above we think the answer is clearly yes. If you argue that your car is old and worth very little in resale terms, then taking out comprehensive insurance may be a waste of money. But to have no third party property damage insurance, you leave yourself open to extreme financial pain. At the very least you should take out third party property cover to protect yourself should you be at fault in an accident. Am I covered? Some people take out car insurance without studying the policy. It’s important for you to understand what exactly is covered. It’s pointless getting frustrated afterwards if you discover that things like wear and tear and bald tyres are not covered. Read the policy, ask questions and compare car insurance with InfoChoice.