You’re on the road. It’s wet and slippery, and you’re driving behind a luxury car like an Audi or BMW. Suddenly, the driver of the car in front slams on the brakes. You’re travelling slightly too close, and while you try to brake in time, the wet road makes it harder to stop. You hear a loud bang and your bonnet and their boot crumple on impact. You’ve had a rear-end crash. Thankfully nobody is hurt, but the two cars need to be towed and further investigation finds they’re both written off.

Unfortunately, you’re found to be at fault for the crash and the bad news doesn’t stop there. You only have CTP insurance – the one that comes with your registration. This type of insurance may protect you against the financial impact of causing injury or death to other road users. It doesn’t cover any damage to your car or the other person’s vehicle or property.

South Australian car owners pay for CTP insurance automatically when they register a vehicle. According to RAA data, more than 120,000 South Australian motorists are only covered by CTP insurance. Why? There are plenty of reasons, but it could come down to cost or a lack of understanding what’s covered.

If you do have a crash and are found to be at fault, you may need to pay for the person’s car to be replaced and be left with a huge debt. While insurance might seem expensive at the time, the cost of not having it could be a lot more in the event of a crash. So, what are some other insurance options insurers may provide?