A Simple Guide to Insurance – All You Need to Know

Finding the best insurance

There are tonnes of insurance options out there and it’s hard to know what you need to protect yourself from financial hardship. But don’t worry Pal, we’ve gathered all the facts you need to help you make informed financial decisions for your future.


Sometimes life doesn’t go to plan and unforeseen events mean you have to dig into your savings unnecessarily. Sounds scary? Unexpected financial loss can have many sources: A big medical bill, theft or sudden damage to one of your assets. Insurance is a smart way to protect yourself and your finances against financial loss. With the right policies in place, you are prepared for any worst-case-scenario.

Addressing the 3 main risks in life

While there are many things you can get insurance against, there are three major things that you should definitely consider addressing: Health problems, asset damage, and financial losses. Better to be safe than sorry!

Personal injuries & health problems

Many people face a serious injury or health problem at some point in their life. In 2014 alone, 480,000 Australians went to the hospital to be treated for injuries and according to the 2014-15 National Health Survey, 1 in 2 Australians have at least one prominent chronic condition. Unfortunately, being cautious and living a healthy lifestyle is no guarantee to be spared from big expenses on medical care. You may slip on a rainy day and break a bone, need your wisdom teeth removed or face one of the many ailments that can come with age. Your profession and lifestyle also may impact the chance to get injured or to be affected by health problems.

Asset damage

Asset damage can mean two things: Firstly, one of your assets can be stolen or damaged.
A personal asset can be anything you own from a car to your work equipment. Or maybe you have an expensive piece of art in your collection. For many people, a house is the most valuable asset that they either own or rent. Damage to your property is a big financial threat for many Australians, especially if their area is prone to natural catastrophes like flooding, bushfires or drought. Additionally, vandalism and theft may also affect your financial situation.

Secondly, you could accidentally damage someone else’s assets and need to pay for the damage. Having the right insurance in place will put your mind at ease knowing you’re covered for any of these unfortunate occurrences.

Financial loss

An investment may fall through, you suddenly lose your job or cancelled flights cause a financial loss that needs to be covered. Luckily, there are many insurance options to protect you against unexpected financial loss.

What insurance should I get?

Finding the right mix of insurance for your cause might be tricky. There are so many out there and it may be hard to picture yourself in a financially tricky situation while things are going well at the moment. If you would like to seek professional advice, an insurance broker may be able to help you. Insurance brokers don’t work for an insurance company but for their clients. It’s their goal to find the most fitting insurance for their clients to provide financial security for the best price. The Australian Government requires all insurance brokers to be licenced by the federal government’s Australian Securities and Investments Commission, therefore, you can be sure to deal with a specialist. Especially as a business, it may be wise to ask for professional advice from a business insurance broker to make sure you cover all areas necessary. Additionally, you can find insurance brokers that are specialised in your area. Whether you’re looking for ‘insurance brokers Melbourne’ or ‘insurance brokers Perth’ you’ll be able to find a number of results in your area.

Car insurance

When buying a car you should consider getting decent car insurance. Even if you are a calm and careful driver, car accidents happen all the time and it could be someone damaging your vehicle rather than the other way round. Some car insurances even protect you against damage from the elements such as hail or falling trees. But make sure to compare car insurance before you settle on one, there are many providers and comparing policies will be worth your time.

There are multiple different types of car insurance available for you:

Compulsory Third Party (CTP) Insurance

This insurance is required by each state and territory and protects any person that you or anyone who is driving your car might injure (while driving or in a car accident). This includes other driver’s, pedestrians and cyclists. It won’t cover any damage to your vehicle or someone else’s. Each state has its own specific policies and the name may vary. In NSW for example, it is called Green Slip, where Victoria has the Transport Accident Charge.

Comprehensive Car Insurance

A comprehensive car insurance policy is not compulsory in Australia. It covers you for damage to your own vehicle or another vehicle or property. Additionally, it covers you for theft and damage by the elements such as fire, storm, hail. It may also provide you with a rental car while your car is getting repaired or waiting for parts to be replaced. However, your insurer will determine if your car is in good condition and might provide insurance if they deem it not worthy.

You can find multiple websites that compare car insurance to make a smart decision.

Third Party Property Insurance

As the name suggests, this insurance covers damage to other people’s property but won’t cover your own vehicle.

Third-Party Fire & Theft Insurance

This insurance offers the same protection as Third Party Property with additional fire and theft protection for your own vehicle.

Health insurance

As you most likely know, the Australian healthcare system has two main parts; the public health system and the private health care system. When needing medical treatment, you can access Australian health care either through one of the systems or a mix of both.

The public health care system is accessible to Australian citizens and permanent residents through Medicare, our tax-funded health care system. Private health service providers manage additional health care services such as private hospitals, specialists and coverage of additional treatments. Medicare insurance may cover your basic needs while private health insurance protects you against additional costs such as dentist expenses, physio costs or costly medication. While the cost of private health insurance is also higher, it provides significant benefits if you need to see a doctor more regularly, has chronic illnesses or just want to be sure that you receive the best care possible in case of a medical emergency.

Travel insurance

Travel insurance can cover you for a wide range of financial losses that may occur during your travels overseas or to a different state or city.

Domestic Travel Insurance
Domestic travel insurance can cover you for many things that can go wrong on a personal or business trip: Lost luggage, delays, cancelled bookings or even damage to your rental car.

International Travel Insurance
Similar to domestic travel insurance, your international travel insurance covers you in uncomfortable situations that may cause financial loss such as lost luggage, delays, cancelled flights or damage. Additionally, they allow you access to the local health care system without having to worry that a hospital visit might break the bank.

Tip: Most travel insurances require you to book in advance, therefore, it’s important to look into policies as early as possible. You may need specific insurance if you want to cover cruises, action sports or unusual activities.

Pet insurance

Your beloved pet is part of the family and should receive the best care possible. Unfortunately, vet bills can add up quickly and an illness or injury can put you in a difficult financial situation. Good insurance will cover a big part of your medical expenses for your pet and ensure that your furry friend is hopefully back to health in no time.
Most pet insurances cover animals up to a certain age and have a fixed amount of coverage per year.

Liability Insurance

Public liability insurance covers claims by the general public resulting from damage or injuries to people or their property. You can get insurance to cover a private person, a business, contractors or even a building from costs for lawsuits and payouts. Public liability insurance costs may vary depending on the insurance company.

Loan Protection Insurance

A personal loan can help you reach different short term goals. This could be buying a car, paying bigger expenses like a rental bond, renovating your home or paying for a big life event. But a loan also comes with repayment responsibilities. Extra fees may be added if you happen to miss a payment or your financial situation changes. Loan payment protection covers your loan payment costs in case you won’t be able to work due to injury or illness. Most insurances also cover you if you involuntarily lose your job, or some even cover your payments in case of your sudden death. Check the loan protection policy for exclusions of pre-existing conditions to know what exactly the insurance covers. Many websites offer to compare insurances for free to help you find the best loan protection insurance. You can even find providers for loan-specific protection such as car loan protection insurance or consumer loan protection.

Personal Loan Pal – What we do

Similar to your insurance broker being your personal insurance pal, we are your Personal Loan Pall. If you are looking for a personal loan, we can help you find the right lender for loans ranging from $2,000 to $50,000. Do you want to know how it works? Our service is easy: 100% online, 100% hassle-free. Simply apply online, sit back, relax and let us get to work with finding you a suitable lender.