More than a million Australians will get their first car insurance on the cheap this year, with more than 5 million covered by the Australian Car Insurance Scheme (ACIS) by 2018.
The scheme, which is based on the National Auto Insurance Scheme, will be rolled out nationwide on August 15 and is designed to cover the cost of all new and used cars.
But if you buy a car through Carac you may find yourself getting a free, low-interest car insurance package.
It comes in the form of a car insurance voucher, which costs about $20.
“The voucher is for you to use to buy your new car,” says Carac’s chief executive, Greg Fishel.
Carac vouchers are good for 10 years.
“[The vouchers] are not tied to the actual purchase of the car,” he says.
So if you’ve already bought a car from the scheme and you want to buy another car, you’ll need to pay up and wait a year to be eligible for another car insurance payout.
If you don’t use the vouchers, you can still get a car coverage payout of $50 or $100 per annum from your insurance company.
You’ll have to pay for your first car purchase through your primary insurance provider.
That means you’ll be covered by car insurance regardless of whether you’ve used the vouchers or not.
However, if you use Carac vouchers to buy a second car, your primary insurer won’t pay you for the first car, meaning you won’t get a payout.