Every driver needs some level of auto insurance coverage to protect against personal liability for bodily injury or property damage caused while driving. In Australia, you'll at least need a compulsory third-party (CTP) insurance policy before registering your vehicle. Registration is often called the Rego, and most states include CTP when you register, with the exception of New South Wales where you'll need to purchase a plan separately from an insurance company. You can think of CTP as bodily injury liability coverage since it protects you, and other drivers of your vehicle, in cases of injuries in accidents.

It's important to note that CTP doesn't cover property damage liability. You can purchase a plan specifically for property damage, or you can take the safest route with comprehensive coverage. This covers you for property damage, theft, fire, flood, and other weather-related damages. You may also be able to get your belongings in the car covered up to a certain amount. Before deciding what kind of coverage is best for you, however, it's important to address some of the most common car insurance myths.

Auto Insurance Prevents Out-of-Pocket Costs

While it's true that the whole point of insurance is to protect you financially, having an auto policy doesn't mean you won't have to pay for anything. Depending on your plan and who was deemed at fault, you may have an additional cost for repairs following an accident. This is especially true in cases no other driver was proven at fault. Inexperienced drivers also tend to have higher excess costs. Generally speaking, the lower your monthly premium, the higher your excess costs can be, so your best value may be to choose a plan with a higher premium that protects you more.

Having a Garage Lowers Your Premium

Many people believe that parking their car in a garage means they can get a cheaper premium, and the idea makes some sense. A garage offers better protection than leaving the car outside, after all. In reality, whether this will make a difference will depend on your insurance company. They'll mostly be interested in how much time, on average, your car will spend inside and outside the garage. You'll want to keep your garage door system in good shape too, so go ahead and call a garage door repair service if you're having issues.

Insurance Coverage is for Mechanical Repairs

Since your policy covers repairs in case of accidents, you may believe that it covers repairs for other reasons as well. Unfortunately, ordinary wear and tear isn't covered, even by comprehensive coverage. You may be able to get roadside assistance added to your policy in case of a breakdown on the road, but you'll be responsible for the necessary repairs.

Insurance Won't Cover Modified Vehicles

The idea that you can't get car insurance coverage if you take your vehicle off-road or add modifications is simply untrue. So long as your vehicle is still considered road-worthy and all your modifications are legal, you can still be covered under your same policy. Just be sure to speak to your agents to ensure you have enough coverage because if the modifications change the value of your car enough, you may not have the right coverage to repair or replace it.

Insurance Claims Are Difficult

One of the most popular misconceptions about auto insurance is that the claims process is complicated and challenging, but it doesn't have to be. You can file a claim by phone or online and will just need some basic information. This includes the contact information of those involved, your license and registration information, and your car's make and model. You may also be asked about the time, location, and other details of the accident. 

Finding the right insurance doesn't have to be hard either. Compare car insurance options with iSelect to find reasonable rates for your needs.