Types of insurance

Compulsory Third Party Bodily Injury Insurance

This type of insurance is paid when you pay for the registration of your vehicle. It covers injury to other people resulting from the liability of an owner, driver or passenger of the vehicle.

Third Party Property Damage Insurance

This type of insurance is not compulsory but it is recommended that every car should have it as minimum cover. Even if your car itself is not worth much money, there is still a risk that if you hit someone else’s vehicle you may be liable for expensive repairs.

Third Party Property insurance covers damage to other vehicles or property resulting when the driver of your vehicle is negligent. This type of insurance does not cover damage to your own vehicle.

It is also possible to get Third Party Property Damage Extension insurance for circumstances where the other person is at fault for the accident, can be identified and is not insured. However, this is normally limited to a certain amount.

Third Party Property Damage, Fire and Theft

In addition to Third Party Property Damage the insured vehicle is also covered for fire and theft.

Comprehensive Insurance

This type of insurance covers third party property damage AND damage or loss to your own vehicle.

Relationship between insurers and repairers

From 28 Febraury 2023, the Motor Vehicle Insurance and Repair Industry Code of Conduct applies to the relationship between insurers and repairers [Fair Trading Act 1987 (SA) Part 3B and Fair Trading (Motor Vehicle Insurance and Repair Industry Code of Conduct) Regulations 2023 (SA)]. Section 28J states that a motor vehicle insurer or repairer must not, in trade or commerce, contravene or fail to comply with a provision of the Code of Conduct. The Code of Conduct only applies to the relationship between insurers and repairers. It does not relate directly to consumers, and any disputes with consumers remain governed by the contract for insurance. The Small Business Commissioner is responsible for the administration of Part 3B. For more information visit the Small Business Commissioner's website.

Choice of repairer

Under section 28K, insurers are required to disclose to the insured any interest the insurer has in the repairer before engaging or authorising a repairer to undertake repairs. An insurer must also disclose to an insured whether or not the insurance policy allows the insured to choose their repairer. These disclosures are required in the prescribed manner at the prescribed time as set out in the Fair Trading Regulations 2010 (SA) [reg 4A and 4B].