Home' Air Force News : August 18th 2011 Contents 29
August 18, 2011
NEW ADF INTERACTIVE
NOW DEPLOYED! www.adfcon
‹ Easy, accurate planning
‹ Battleground graphics & details
‹ Targeted at ADF personal & family finances
‹ Super-fast calculations
Who said finances are boring? This whole exercise will help all
ADF members and their families manage income and expenses,
create personal balance sheets, and understand progress towards
financial independence. Check it ou
BUYING a car or motorbike
can be exciting but there are a
number of steps to take before
you hit the streets.
You need to make sure you have
the budget for a vehicle. As well as
the purchase price, factor in the yearly
costs of registration, maintenance,
fuel and insurance.
The cost of insurance is deter-
mined by the level of risk your insurer
is taking on.
Because more young drivers are
involved in accidents than older driv-
ers, most insurance companies charge a
higher premium for drivers under 25.
Young drivers may also have to
pay an additional 'age excess' when
making a claim. Always check your
policy carefully to see what excesses
If you are under 25 and your par-
ents are letting you use the family car,
they will have to pay extra to insure
you and the car, and they should
inform their insurer when you start
Types of car insurance
Compulsory third party (CTP) insur-
ance is the most important type of car
insurance and is required by law.
It covers death and injury to
people if you are involved in an
Each state and territory has differ-
ent rules relating to this type of cover.
Go to your state or territory traffic/
transport authority for information on
CTP car insurance.
Additional types of car insurance
Third party property insur-
ance that covers damage to other
people's property (e.g. their car or
home) and your own legal costs.
Third party, fire and theft insur-
ance that covers damage to other
people's property, and provides
limited cover for damage to your
own car caused by theft or fire.
Comprehensive insurance that
covers damage to your own car and
other people's property for acci-
dent, fire or theft.
Having comprehensive insurance
is the safest option, otherwise having
at least third party property insurance
is the way to go because it means you
will not have to pay a hefty sum if
you wreck someone else's vehicle.
Choosing the right cover
When deciding what level of addi-
tional cover you need to ask yourself:
If I crash into a luxury sports car
You need to think
about insurance for
those new wheels, says
ASIC chairman Greg
Email ASIC at ADFcolumn@asic.gov.au with topics that interest you
will I be able to afford the repairs? Is
my car likely to be broken into? How
will I get around if my car is stolen or
Car insurance policies are based
on either 'agreed' or 'market' value.
An agreed value policy has a set
dollar value for your vehicle.
Market value policies value your
car based on the make, model and
condition. The agreed value is usually
higher than the market value.
When comparing the cost of dif-
ferent car insurance policies, weigh up
the difference between having a high
premium and low excess versus the
You may be able to save on your
premium by increasing your excess.
When to get insured
If you are buying your car from a
car dealer you do not have to get the
insurance from them.
Buying a car, getting a loan and
paying for insurance are three sepa-
Always shop around. You might
be better off getting each of these ser-
vices from three different places.
If you buy a car privately, includ-
ing through an internet site, you still
need to shop around for insurance.
In fact, when you are buying pri-
vately it pays to be extra vigilant check-
ing the details and doing all the appro-
priate paperwork and back checks.
Go to your state or territory roads
and traffic authority for helpful infor-
mation on what you need to do when
buying a car privately.
It's also very important to call
your insurer before you buy to find
out everything they need to know
about the car.
When you are buying a car privately
you should always do a REVS check.
REVS stands for Register of
REVS is a free service run by state
and territory governments which can
tell you if the car you are thinking of
buying is carrying a debt, and could
Whether you are buying at a dealer
or privately always ensure you're cov-
ered before you drive the car away.
And always shop around with at
least three different insurers so you
can compare quotes.
For more information about buying
a car and getting insured, visit the
Australian Securities and Investments
Commission's consumer and investor
website, MoneySmart at www.
moneysmart.gov.au or call 1300 300
BEFORE YOU HIT THE ROAD: Take time
to check out a few things.
Photos: SGT Andrew Hetherington
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