Car insurance

Car Insurance: Everything You Need To Know

It can easily happen: a stone cracks your windscreen from a nearby truck, you leave your keys in the car door in a rush, you reverse into a pole in the summer glare.

Which is when car insurance is important. And if you have car finance, it’s even more important to be covered. Car insurance can be confusing. With so many things to consider, we’ve made it easy and put together our top questions about car insurance to keep you in the know.

Why do I need car insurance?

Basically, many of us can’t afford not to have car insurance. In the case of theft or an accident, we’re covered since we don’t need to fork out the thousands of dollars in damages ourselves.
It’s also required if you’re getting car finance. Because the car is being used as security on your loan, without insurance you could end up liable for the remaining finance owed on your car (even if it’s written off) along with the costs of damages to other vehicles.

What’s the difference between comprehensive and third party insurance?

Comprehensive is the full package that covers your car as well as damage to another car.
Third party insurance protects you from the costs of damage your car causes to someone else’s car or property. Which means it doesn’t cover any damage or theft of your own car. Remember you’ll still be liable for any finance repayments regardless of whether your car is damaged or written off.

Does my insurance need to arranged through my lender?

Nope, with The Lending People you can arrange motor vehicle insurance with any provider. Every insurer and policy is different but you can use websites such as to compare (the cheapest doesn’t always mean the best value!)

How can I lower my premiums?

Some insurers will reduce your premium if your car is stored in a garage or off-street, or if you’ve made no claims for a certain period of time. You can often decrease your premiums by choosing a higher excess (the set amount you pay when making an insurance claim)

Can I get insurance with a learners or restricted license?

Yes, but you must adhere to your license conditions, otherwise your insurance could be void. Remember to let your insurer know when you update your license.

Do I need to advise my insurer of speeding tickets?

It may come as a surprise, but many insurance providers state that they must be advised of any speeding tickets. If you get one, it’s best to check through your policy wording to ensure you’re still covered.