Car Insurance

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Compare Car Insurance

Updated on 25 May, 2022

Finding the right car insurance can be an arduous task.

From comprehensive car insurance, to third party property and third party fire and theft, car insurance policies can be confusing and expensive if you don’t pick one that suits your driving needs.

InfoChoice can help you sift through the different types of policies, enabling you to not only compare car insurance providers, but the features and services offered by car insurers.

The following guidelines will help you understand what car insurance is, who provides it, its advantages and disadvantages and the best value or most comprehensive car insurance products for your own needs.

Compare Car Insurance

Virgin Car Insurance Comprehensive Cover
Discount or Special Offer Save 15% on your first year’s premium online
Agree or Market Value Yes
Roadside Assistance Option Yes
Policy Details
Loss or damage to your vehicle
New car replacement 2 years / 40,000km
Damage to someone else's car or other property Up to $20 million
Damage caused by an uninsured driver
Towing
Hire car following a no fault accident Unlimited period
24/7 Claims
Flexible payment options Fortnightly, monthly or yearly
Cooling off period 21 Days
Choice of repairer option
Flexible excess to reduce premium
Replacement of stolen keys/remote Up to $1,000
Damage or theft of personal effects in your car Up to $500
No-claim discount protection option cross

Limits, Terms & Conditions apply. See PDS for full details. See Velocity Points Terms and Conditions at Virgin Money.

 

Budget Direct Gold Comprehensive Car Insurance
Discount or Special Offer Money Magazine Insurer of the Year 2020
Agree or Market Value Yes
Roadside Assistance Option Yes
Policy Details
Loss or damage to your vehicle
New car replacement 2 years / 40,000km
Damage to someone else's car or other property Up to $20 million
Damage caused by an uninsured driver
Towing
Hire car following a no fault accident Unlimited period
24/7 Claims
Flexible payment options Fortnightly, Monthly or Yearly
Cooling off period 21 Days
Choice of repairer option
Flexible excess to reduce premium
Replacement of stolen keys/remote Up to $1,000
Damage or theft of personal effects in your car Up to $500
No-claim discount protection option cross

Limits, Terms & Conditions apply. See PDS for full details.

Bingle Comprehensive Car Insurance
Discount or Special Offer Our best price, always
Agree or Market Value Market Value Only
Roadside Assistance Option No
Policy Details
Loss or damage to your vehicle
New car replacement option Optional Extra
Damage to someone else's car or other property Up to $20 million
Damage caused by an uninsured driver
Towing
Hire car following a no fault accident Optional extra
24/7 Claims
Flexible payment options Monthly or Yearly
Cooling off period 21 Days
Choice of repairer option cross
Flexible excess to reduce premium cross
Replacement of stolen keys/remote
Damage or theft of personal effects in your car cross
No-claim discount protection option cross

Limits, Terms & Conditions apply. See PDS for full details.

AAMI Comprehensive Car Insurance
Discount or Special Offer $50 Online Discount
Agree or Market Value Yes
Roadside Assistance Option Yes
Policy Details
Loss or damage to your vehicle
New car replacement within 2 years
Damage to someone else's car or other property Up to $20 million
Damage caused by an uninsured driver
Towing
Hire car following a no fault accident Unlimited days
24/7 Claims
Flexible payment options Monthly or Yearly
Cooling off period 21 Days
Choice of repairer option cross
Flexible excess to reduce premium
Replacement of stolen keys/remote cross
Damage or theft of personal effects in your car Up to $1,000
No-claim discount protection cross

Limits, Terms & Conditions apply. See PDS for full details.

RACV Comprehensive Car Insurance
Discount or Special Offer No
Agree or Market Value Yes
Roadside Assistance Option Yes
Policy Details
Loss or damage to your vehicle
New car replacement within 2 years
Damage to someone else's car or other property Up to $20 million
Damage caused by an uninsured driver
Towing
Hire car following a no fault accident Unlimited days
24/7 Claims
Flexible payment options Monthly or Yearly
Cooling off period 21 Days
Choice of repairer option
Flexible excess to reduce premium
Replacement of stolen keys/remote
Damage or theft of personal effects in your car Up to $500
No-claim discount protection

Limits, Terms & Conditions apply. See PDS for full details.

Real Comprehensive Car Insurance
Discount or Special Offer Save up to 10% when you buy online
Agree or Market Value Yes
Roadside Assistance Option Yes
Policy Details
Loss or damage to your vehicle
New car replacement within 2 years
Damage to someone else's car or other property Up to $20 million
Damage caused by an uninsured driver
Towing
Hire car following a no fault accident Optional extra
24/7 Claims
Flexible payment options
Cooling off period 14 Days
Choice of repairer option
Flexible excess to reduce premium
Replacement of stolen keys/remote Up to $1,000
Damage or theft of personal effects in your car Up to $500
No-claim discount protection option cross

Limits, Terms & Conditions apply. See PDS for full details.

Insurances is our latest comparison category. We are working hard to search for great deals and encourage brands to participate on our comparison service. We do not cover every product, provider or service available in the market. Products compared may not compare all features and options that may be relevant you. Not all products offered by each supplier may be compared. We have a commercial marketing relationship with “Sponsored” providers. “Sponsored” products will have a link to a product provider’s website should you wish to get more information or apply for the product. For more information on how we’ve selected these “Sponsored” and “Featured” products, how we make money, the products we compare and other important information about our service click here.

Any advice provided on this website is of a general nature. You should confirm any information with the product provider and read the information they provide including the Product Disclosure Statement (PDS).

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What is car insurance?

Car insurance is a policy agreement between a driver and an insurance company that covers damage to persons, property and vehicles in the event of a car accident.

Vehicle insurance covers cars, trucks, motorcycles, and other road vehicles by providing financial protection in the case of an accident.

Insurance covers physical damage to a car (yours or a third party’s), bodily injury and property damage resulting from traffic collisions.

It may also cover theft, depending on the type of car insurance policy you take out.

Car insurance policies can be paid monthly or annually in the form of a premium (The amount of money paid for an insurance policy and usually involves an excess payment should an accident occur.

Australian car insurance companies offer 4 levels of insurance:

1. Compulsory Third Party (CTP)

Compulsory Third Party is the only insurance that is mandatory in Australia. Without CTP, you cannot have your car on the road. This insurance only covers injuries to other people and legal liabilities. It will not cover any damage to your car or the car involved in the accident with you.

2. Third Party Property Damage

If you want a little more protection than the Compulsory Third Party policy, you can get Third Party Property Damage insurance. This insurance cover will pay out any damage you cause to someone else’s car but it will not cover any damage to your car.

3. Third Party Fire & Theft

The next level up is Third Party Fire and Theft insurance. Third Party Fire and Theft policies cover you in case your car is stolen or damaged by fire.

4. Comprehensive

Comprehensive car insurance is the highest cover you can get. It covers your car and another car you may have damaged, property damage, injury, damage due to severe weather or fire just to name a few. We will look at this type of insurance in more detail shortly.

How to apply for car insurance?

Applying for car insurance is quite easy these days.

It’s a matter of finding an insurer online and applying via their website.

Once you have researched the insurance companies and decided on the one you would like, fill out the quotation form on their webpage.

You will need to provide some information such as your name, address, the type of car, age of the car and any other questions they may have. Once you have done this, you should receive a quote within a matter of minutes.

If you are happy with this quote, you will move onto the next stage which is where you give any documentation they may require to complete your application and you pay for your insurance policy.

The policy will start from the date that you nominate.

How much will car insurance cost?

Car insurance prices vary not only from provider to provider, but also according to your cover. The less you are covered for, the less your insurance premium will be. If you select top cover, you will be paying the highest premium.

Factors that determine how much your car insurance will be include:

Age of driver

Drivers under the age of 25 are considered young drivers. Young drivers are seen as a risk on the road and, therefore, having a young driver on your policy will increase your premium. If you do not have a young driver driving your car and can’t see that occurring in the foreseeable future, make sure it isn’t a cover listed on your policy.

The vehicle you drive

The type of car you drive will have a large impact on the price you will pay for your premium. For example, expensive cars are expensive to insure. Cheaper cars are cheaper to insure. High powered cars are charged a higher premium as these cars are associated with risky driving behaviour.

Where you park your car at home

Where your car is parked at night is a very large determining factor of what your premium will be. Some areas are listed as high risk areas for theft and fire. If you live in one of these areas, you will find that your insurance premium will be higher. If you are able to lock your car away in some form of secure parking whilst at home, you could save a little off the price of your premium.

Your insurance excess

Whenever you have an accident, you need to pay an excess in order to submit an accident for the insurer to fix your car. Some insurance policies allow you to select how much excess you will pay and this in turn affects your premium price. If you select a higher excess, you can pay less on your premium. Alternatively, you can choose a lower excess, meaning you will pay a higher premium.

Market value or agreed value

The price of your premium will also be different if you select market or agreed value. Market value usually means you pay a slightly lower premium as the insurer assesses what your car is worth at the time of your claim. If you have agreed value, your premium is likely to be higher. People with expensive cars or those that have special modifications usually choose agreed value. This allows you to select exactly how much you would like to receive in the event that your car is stolen or written off.

The type of driver you are

The type of driver you are can affect your insurance dramatically.

If you have a good driving history with no accidents and no speeding or parking infringements, you will most likely pay less on your insurance. So too, if you don’t drive many kilometres as the less time on the roads means less chance of accident.

The types of insurance policy you select

Your insurance premium will be largely affected by the type of policy you choose. For instance, there is a pricing tier for car insurance.

Compulsory Third Party (CTP)

This is compulsory throughout Australia. This only protects you for medical and legal liability;

  • Third Party Property Damage

    Potentially the cheapest of all car insurances it covers any property you may have damaged.

  • Third Party Fire and Theft

    Slightly more expensive than Third Party, but covers you for all of the above as well as fire and theft.

  • Comprehensive insurance

    Slightly more expensive than Third Party, but covers you for all of the above as well as fire and theft.

This is the top of the range, most expensive insurance you can get as it also covers damage to your vehicle in the event of a collision or other incident.

It is important to note that evaluating our car insurance premiums isn’t something we often do. Most people roll their policies over from one year to the next. However, it is likely you can find a better deal elsewhere.

Yet, as explained above, the cost of insurance isn’t always transparent, as how much your premiums will be are generally based on your personal and other circumstances.

While we need financial protection against an accident or crash, you shouldn’t just settle for any policy, or the one you have had for years.

Not only does the cost of car insurance vary based on your personal circumstances, it may also vary based on your state, suburb or regional area.

According to the Australian Prudential Regulation Authority (APRA), in 2019 the average cost of comprehensive car insurance was $640.

Choosing an insurer

When it comes to car insurance, you aren’t locked into one policy for the life of your car. You are able to shop around and swap to another insurance policy, or even a new provider if you aren’t happy with your current policy. Here are some tips on getting the most out of your insurance policy:

  1. Do an annual review of your policy

    When it’s time to renew your policy, don’t simply sign up for auto renew. Firstly, establish if you need to change the amount of cover you have. You may be on a lower coverage policy and decide it’s time to become comprehensively insured, or it might be the opposite and you decide to downgrade. Once you have established that, it’s the perfect time to look around and see what other insurance providers are out there. You might find a similar cover to what you have or want but for a lower price.

    InfoChoice can help you compare a range of car insurance providers and policies across the comprehensive, third party, third party fire and theft categories.

  2. Do you need to be with a brand or can you go with a budget insurer?

    A lot of brand name insurance policies, think AAMI or RACV etc., offer more expensive policies. This is partly due to the fact that they need to cover their advertising costs. However, you might see that a budget brand such as Budget Direct can offer you a very similar product for a lesser fee. Always check with the different insurers to see what they can offer.

  3. Start comparing and use autofill

    Autofill is helpful when filling out numerous quotes as it fills in commonly entered information for you. Comparing is easier when you have less work to do.

  4. Understand your Product Disclosure Statement (PDS)

    It’s very important to understand what you are covered for. Read the fine print and make sure your non negotiables are listed.

How do I compare car insurance policies?

When comparing car insurance policies, you need to take into consideration how much insurance you will need.

If you have a brand new, expensive car you will probably want to make sure it is fully insured with a comprehensive insurance policy.

On the other hand, if you are buying a very old second hard car, you might choose to only have the compulsory third party insurance.

The amount you pay in insurance will depend on a number of things such as your age, gender, driving experience and your claims. The amount can also be affected by where you live and where you travel to.

Making a car insurance claim

If you have had an accident, you will need to make a claim. In order to make a claim you will need to have a list of specific information to submit such as:

  • The date and time of the accident
  • Location where it occurred
  • Other driver’s phone number, license details and registration number
  • Details of anyone else involved
  • If there were any witnesses you will require their statements.
  • Any photo evidence
  • Police report if applicable

In this day and age, it’s easy to put in a claim relatively quickly as most insurance companies allow you to do that online. A claim can even be made be via your insurance provider’s website or via an app on your mobile if your insurer has one.

When you make a claim on your insurance, your car will not be fixed until you have paid your excess.

Some insurance policies offer a no claim bonus. This means for every year you don’t make a claim you might be eligible for more discounts and pay less on your premium. You may lose this benefit if you put a claim in.

What is an excess?

If you need to make a claim, the excess is the amount you pay your insurer to take on this claim. Many times the insurer will give you the option to pay a higher excess and lower monthly/annual premium or you could choose a lower excess with a higher monthly/annual premium.

There may be some different excesses listed on your policy such as:

Age excess: Your excess will be determined by the age of the driver at the time of the accident. Most policies have a higher excess for young drivers under the age of 25 years old. If they are under 21, the excess might be even higher. Their excess can range from $400-$2000 depending on your policy.

Unlisted driver excess: If you lend your car to someone who is not listed on your policy and they have an accident in your car, you may have to pay an unlisted driver excess. This could be quite pricey with some insurance companies charging as much as $1500 for this excess.

Windscreen excess: Some policies list windscreen as a separate and cheaper excess. You will usually find the windscreen excess to be around $100.

Are there ways to save money on my insurance policy?

There are a number of ways you can save on your premium. Here is a list of some discounts that you may be eligible for.

Multi-policy discount

Some insurance providers don’t just offer car insurance. They may also offer life insurance or home insurance. If you bundle your insurance policies together, you may be eligible for a discount.

Online discount

A lot of insurance providers are moving to an online format so as to eliminate having to have a shop front. They may offer a discount if you select to take out your insurance online rather than in a branch.

Restricted driver discount

Restricting the amount of people who will be driving your car is a good way to get a discount. So too is having an age limit on your policy. If you have an 18 year old son and he will not be driving your car, make sure to let the insurers know. This will most likely lead to a discount in your premium.

Loyalty discount

Some insurance companies offer a discount to loyal customers, so if you have been with them for a while, ask if you are eligible.

Fuel efficient discount

A lot of insurance providers are becoming increasingly environmentally conscious. If you have an eco-friendly vehicle you may be eligible for certain discounts.

Changing insurance providers

There will be times in your life that you decide you would like to change insurance providers. There could be a number of reason to want to do this. You may find a cheaper policy elsewhere, you didn’t like the customer service at your current insurer, some providers even offer discounts to new clients. Whatever the reason, when changing providers there are a few things you should not forget:

Take out a new policy before you close your old one.

This is the most important step to making sure your car is insured at all times. Always make sure the new insurance policy is valid before you close your old policy.

Close your old policy

There is no point in having your vehicle insured by two places at the same time. As soon as your new policy is up and running, don’t forget to close your old one.

What you need to know about Comprehensive Car Insurance

What is Comprehensive car insurance?

Comprehensive car insurance is the highest possible cover you can have for your car. It is the most extensive cover available and usually includes everything from the other types of car insurances plus more. It is also the most expensive form of car insurance that you can get

If you have comprehensive car insurance, this will include the mandatory third party cover as well as property, fire and theft cover. You have the additional cover in case you accidentally damage your own car, regardless of who is at fault.

Comprehensive cover means you will also have access to some extra cover options that you might like to consider. These are options such as windscreen repair and selecting your repairer just to name a few.

It may be possible for you to select between market value or agreed value for you policy. This means you could determine how much you would like to receive for your car should it be written off or stolen. Keep in mind, that selecting agreed value might affect your premium price.

There are certain things you might not be covered for, no matter how high your insurance policy is.

If you are under the influence of drugs or alcohol, when you have an accident you will most likely not be covered. You may also not be covered if you let someone else drive your car who isn’t on the insurance policy.

Comprehensive car insurance can be very pricey. In some cases it could be over $2000 per annum, that’s why it’s important to compare policy prices before locking into one.

The basics that you are covered for with comprehensive insurance are:

  • Accident or collision
  • Severe weather damage such as flood, hail or storm damage
  • Fire and theft
  • Malicious acts
  • Damage to third party property.

InfoChoice offers a range of comprehensive car insurance policies to compare. Have a look at the comparison table for a list of products and policies.

What are some of the additional extras to consider with comprehensive car insurance?

Comprehensive car insurance policies offer an array of extras that you could choose to purchase. The more cover options you select, the higher your premium will be. Here are some extra options available:

Windscreen cover: Windscreen cover will cover any damage done to the windscreen or other windows on your car. This sometimes has its own excess, but it is usually lower than the excess for any other claims on your policy.

Choice of repairer: Some comprehensive insurance policies allow you to choose your own repairer. Some people prefer to use their own trusted repairer.

Rental cover: If you have rental cover, that means the insurer will cover any rental vehicle you may need during the time that your car is unavailable to you due to damage.

Personal property: If you tend to leave your valuables in your car, you may want to select personal property cover. This way, if your car is broken into and any of your property is stolen, your insurance policy will cover that.

Roadside assistant: If your car breaks down and you need roadside assistance, some comprehensive insurance policies offer this at no extra cost. Some other options for cover are towing, legal liability and lock and key replacement.

Do I need comprehensive insurance?

For most people, having comprehensive insurance is a good idea. It gives you the peace of mind needed when dealing with such expensive repairs that come with a car or any car damage. It’s not just an accident that is covered. You will be covered for damage such as hail and other severe weather events too.

Comprehensive insurance isn’t for everyone though. If you drive a really cheap car, it may not be worth paying so much for a comprehensive policy.

How can I save money on my comprehensive car insurance?

There are a few ways you can save money on your comprehensive car insurance.

Compare policies: There are many insurance providers with different types of policies. Do some research and see which ones suit your needs best.

Increase your excess: In some cases, you can chooses to increase your excess and reduce your premium.

No-claim bonus discounts. Some insurance providers will give substantial discounts if you make no claims each year. If you have a good driving record, this could save you a lot of money.

Nominating drivers. Some providers will give you a discount if you only let nominated drivers drive your car.

Bundling your insurance. Bundling your insurance policies is a great way to save some money. If you have a number of different insurance policies such as life insurance, and home and contents insurance you could bundle these together and benefit from a multi-policy discount

Agreed value vs market value

When you apply for a car insurance loan, you may be asked if you would prefer to have agreed value or market value on your car if it were to be written off or stolen.

There’s advantages and disadvantage to both so it’s worthwhile considering a few things before deciding.

What is market value?

‘Market value’ is a term in the insurance industry that refers to how much your car is worth on the market at the time of making a claim.

So if your car is insured for market value and it is stolen or written off, you will only receive what the insurer estimates the price will be.

It’s important to know that it is not the cost of replacing your car with a brand new one, or the trade-in value of your car.

The insurer will take into consideration a number of factors when determining what your market value will be. These factors include the age, condition, make and model of the vehicle, it’s kilometres travelled, and its service and accident history.

Important things you need to know about market value are:

  • Your insurer will estimate what your car is worth at the time of the accident
  • Insurance premiums are usually lower than if you were to insure for a high agreed value
  • You can never be sure what compensation you will receive for your vehicle should it be written off or stolen.

What is Agreed value?

‘Agreed value’ is a term in the insurance industry that refers to the amount that you and your insurer agree upon in the case that your car is stolen or written off.

This type of car insurance policy usually has higher car insurance premiums, as the agreed value you have decided on is likely to be a lot higher than market value for your car.

Important things you need to know about agreed value car insurance:

  • You and your insurer will agree on an amount that you will receive
  • Agreed value will have higher premiums than market value
  • You know the exact amount you will receive for your car should you put in a claim.

Deciding whether to get agreed value or market value car insurance can sometimes be tricky. You need to assess the information and make a decision that suits your circumstances.

If you have a relatively new car that has some expensive modifications or additions, you may want to select agreed value as that way you are more likely to get paid the money you think it will cost to replace it.

However, if you drive an older car, you may want to save money on your premiums and only go for market value

What is a No Claim bonus

Also known as a no claims discount, this is a safe driver reward that gives you a discount on your car insurance. You usually need comprehensive car insurance to have the No Claim Bonus.

Your no claim bonus is calculated by the insurer looking at the following:

  • How long you and any nominated driver have been driving
  • Your claims history. This includes any claims other drivers have made on your policy
  • Your rating from your previous car insurance provider
  • You can find your rating by checking your current car insurance policy.
  • Ratings usually start at 6 for the lowest and 1 being the highest. You can usually achieve rating 1 status by having no claims in 5 years

When you make a claim or someone makes a claim against you, your rating will drop.

Some insurance providers offer No Claim bonus protection.

This is extra cover, usually at an additional cost, that protects your rating. With No Claims Bonus Protection, you are able to make a certain number of claims before your rating is affected.

Each insurer is different, so check with yours to see how many claims you can make before your rating starts to drop.

Are Learner drivers covered by insurance?

Each insurer is different, so it’s always important to check your policy or call them to ask if your learner is covered. In some policies, learners are automatically covered as long as they are accompanied by a fully licenced driver sitting in the front passenger seat.

Learner drivers and Comprehensive car insurance

Learners are usually covered under comprehensive car insurance policies provided they are accompanied by a fully licenced driver who is seated in the front passenger seat beside them.

However, many comprehensive insurance policies will charge an excess for learners and inexperienced drivers. The different categories could be:

  1. Learner driver excess: An excess charged if your learner driver has an accident.
  2. Young driver excess: An excess that is charged if your driver is under the age of 25 years old.
  3. Inexperienced driver excess: An excess charged if the driver who caused the accident has not had their licence for a long period of time.
  4. Undeclared driver excess – An excess charged if the driver who had the accident isn’t listed on your policy.

Who are Australia’s car insurance providers

There are numerous budget and big brand names offering car insurance in Australia. These include:

AAMI AI Insurance Allianz ANZ
Bingle Budget Direct CGU Coles
GIO Huddle Hume Bank NRMA
QBE RACV and RACQ Real Insurance Suncorp Bank
Virgin Money Woolworths Youi

Financial Dictionary

Accident A collision involving a car.
Agreed Value An agreed upon value between a car owner and insurer to establish the compensation limit if a vehicle is written off. This is a fixed value and can be renegotiated when the policy term ends.
Anti-Theft Device A devise designed to prevent car theft that is likely to bring down the cost of insurance premiums.
At-fault claim If you were the cause of an accident, you will make an at-fault claim. Comprehensive insurance will cover this, but you may lose your rating. If you can’t name an ‘at-fault’ party if the accident wasn’t your fault, you’ll still need to make an at fault claim.
Car Hire Cover Coverage given by an insurance in the case that an accident causes an owner to hire a car while the former vehicle is being replaced or fixed.
Coverage The protection and benefits listed in your insurance policy.
Claim A request for payment made by a driver who has had an accident to the insurance provider.
Cooling-off period The time you have to cancel the policy after you have taken one out.
Comparison Tool An online tool that helps you compare insurance policies and providers. InfoChoice offers a range of providers to compare.
Comprehensive Cover Comprehensive car insurance is the highest possible cover you can have for your car. It is the most extensive cover available and usually includes everything from the other types of car insurances plus more. It is also the most expensive form of car insurance that you can get
Compulsory Third Party Insurance (CTP) Compulsory Third Party is the only insurance that is mandatory in Australia. Without CTP, you cannot have your car on the road. This insurance only covers injuries to other people and legal liabilities. It will not cover any damage to your car or the car involved in the accident with you.
Damage Physical harm that affects the value of the asset, in this case a car.
Discount Premiums may be reduced if a driver can satisfy certain policy conditions.
Driving Record How long you have been driving, whether you have had an accident and your driving history is all taken into account by an insurer when you take out a car insurance policy.
Excess The excess is the amount you pay your insurer to take on this claim.
Extras Added extras, including policy features that extends your insurance coverage.
Fire and Theft insurance An insurance policy that covers you for fire and theft as well as basic damage.
Insurer The provider of your insurance policy.
Market Value The amount the market deems to be the worth of your vehicle.
Motor Vehicle Insurance Insurance that protects your car against damage, fire and theft.
No Claim Bonus A monetary rewards for not making a claim in any given year, usually associated with comprehensive insurance.
Nominated Drivers You may nominate a driver other than yourself to drive your car and be covered by your policy.
Policy The legal document that you sign that becomes the agreement between you and your insurance provider.
Premium The price you pay for your insurance coverage over an agreed period of time.
Rating A ratings system that determines the cost of insurance premiums.
Replacement Vehicle The ability to drive an interim vehicle while your vehicle is being repaired.
Third Party A person involved in the accident that is not the primary policy holder, but is affected by the accident.
Write-off When the cost of the damage done to the car is above the value of the car.
Windscreen Damage Damage caused by impact or wear and tear that may be covered by your insurance policy.
Young Driver A driver under the age of 25 years old, who is still considered a risk and may be subject to higher premiums. Can be part of a family policy.

Car Insurance FAQs

Is car insurance compulsory?

In Australia, it is compulsory to have the minimum of Compulsory Third Party Insurance. It only covers you for injury and medical costs and legal liability in the event that you are involved in an accident. If you want higher cover, you can get third party property damage, third party fire and theft or comprehensive insurance. The more you are covered for, the more your insurance policy will cost.

What is a ‘No claims bonus’?

A no claims bonus is a bonus offered by insurers to people who have a good track record and have made no claims in their insurance policy in a specific amount of time. The longer you have been claim free, the more discount you will receive. The good news is it is transferrable, so if you move to another insurance provider, you won’t lose your rating.

What is the difference between “market value” and “agreed value”?

Market value is how much the market determines your car is worth at the time of your claim. Agreed value is the amount you agree on with your insurer if your car were to be stolen or written off. An agreed value policy is usually more expensive than market value.

What happens if my car is written off?

A car is considered a write-off if the repair costs will outweigh the value of the vehicle. If you write-off your car, your comprehensive insurance will pay the amount you have it insured for minus your excess.

Do car modifications affect my comprehensive car insurance costs?

Certain modifications will result in a higher insurance premium. Some basic ones such as car stereo or alarm, won’t affect it too much but any performance modifications will definitely make a difference. Make sure you list all the modifications with your insurer or else you won’t be covered for anything not known to the,.

Do I have to pay my full car insurance upfront?

Some policies will need to be paid upfront, but some insurance companies allow you to make monthly payments towards your premium. You may find that you will be charged a slightly higher price if paying by the month.

Can my child who is a learner driver, be listed on my car insurance policy?

Most insurers will cover learner drivers, but it’s best to check with your insurer if your learner is covered before you take them out for a drive. You will also need to look into what excess you will need to pay if your learner has an accident. Excess for young drivers is more expensive than regular excess, particularly for inexperienced drivers and learners. If by chance your learner has their own car, it’s a good idea to get them their own insurance policy so they can start on their journey to a no claim bonus.

Do I need my own car insurance policy when I get my P-plates?

You will only need your own policy for your P-plates if you have your own car. If you are driving the family car, you can be added onto your parents’ insurance policy.

What does car insurance cover?

There are four levels of car insurance cover in Australia. They each cover different things. Car insurance starts with Third Party which is compulsory throughout Australia, followed by Third party Property Damage, then Third Party Fire and Theft, with the most inclusive policy being Comprehensive Insurance.

Who does third party insurance cover?

Third Party insurance typically covers the other person if you have been in an accident. It doesn’t cover their vehicle or property. It only covers any medical related bills and legal liability.

What is a Product Disclosure Statement?

Your Product Disclosure Statement is sent to you before you sign up to an insurance policy. You usually receive it via email. It is the document that outlines everything you need to know about your policy coverage such as limitations and exclusions. It also outlines any features your insurance offers, fees, commissions, benefits, risks and the complaints handling procedure.

Does car insurance cover unlisted drivers?

Each policy is different so you would need to check your policy to see if yours covers unlisted drivers. In some cases, they might be covered but there may be an excess that will need to be paid. In other cases, they may not be covered at all. You can find all the details relating to your individual insurance policy in your insurer’s Product Disclosure Statement.

Is comprehensive insurance compulsory?

No comprehensive insurance is not compulsory. The only compulsory insurance in Australia is Third Party insurance. However, in some instances, if you have taken out a loan on the car, your lender may require you to have comprehensive insurance.

Does comprehensive insurance cover me in case I need a rental car?

Some insurers may offer this as part of their comprehensive cover but in most cases, having access to a rental car is an additional option that you can add to your policy. Adding this will make your policy a little more expensive.

Does comprehensive car insurance cover me for flood damage?

Yes, comprehensive policies will cover you for flood damage to your vehicle.

Will comprehensive insurance protect me from hit-and-runs?

Yes. If you have been involved in a hit and run, your policy should cover your vehicle for any damage. Keep in mind, you may need to pay the excess if you can’t identify the person who caused the accident.

Do I have to call the police to report a minor accident?

You only need to call the police if someone has been injured, if the vehicle is undriveable, or if any other motorists are in danger due to fuel spill, fallen power lines etc. If it’s just a small bingle, police are not needed.

What should I do if the other driver refuses to give me their details at the scene of the accident?

It is a legal requirement to exchange full details at the time of an accident. This includes name, address, contact number, vehicle owner and registration number. If they refuse to give you their details, the most important thing to do is to note down their registration number in case they run off, then call the police so they can follow up.

Is there a time limit for making a car insurance claim?

When you have been involved in an accident you should contact your insurer immediately. If there was a theft or any malicious damage done to your car, you must report it to the police right away. They’ll provide you with a reference number, which you’ll need to give your insurer when you claim.

Do I make an insurance claim if the accident was my fault?

Yes, you should make a claim if the accident was your fault. You will need to pay an excess and you will most likely lose your no-claim bonus, but it’s better than having to fork out all the money it will cost to fix both cars and any property that was damaged in the accident.

What is No Claim Discount protection?

Some insurers allow you to take out cover to protect your no claim bonus. This cover allows you to make a certain number of claims before your no-claim bonus is affected.

Can I transfer my no claim bonus?

Yes, you can usually transfer your no claim bonus from one insurer to another provided it is for the same vehicle. If it is for another vehicle, it’s possible they may not allow this transfer.

Should I contact my insurance company if I’m in an accident that was not my fault?

Yes, you should always contact your insurance company in the event that you are involved in any accident, even if it isn’t your fault

Can I make an insurance claim for minor dents and scratches?

It’s worthwhile finding out how much it will cost to repair your car if it only has minor dents and scratches. If the repair will cost less than your excess, then it’s not worthwhile putting in a claim. Not only will it needlessly cost you more money, but it will also affect your no claims bonus.

Will I ever need to communicate with the other driver’s insurance company?

In most instances, your insurance company will do all the communicating on your behalf. If you receive any correspondence from the other person’s insurance company, simply pass it on to your own insurer to deal with.

If I am involved in rear-end car accident, which driver is at fault?

It’s usually the driver who is behind that is presumed to be at fault. All drivers should keep a certain distance between them and the car in front, in case the front car unexpectedly brakes. However, the insurer will consider all the evidence before determining who may be liable.

What if my car is stolen and not found?

If your car is stolen and not found, you will be paid out for your car if you have Third Party Fire and Theft or Comprehensive insurance. Your payout figure will be determined by whether you selected agreed or market value.

What if my stolen car is found but has been damaged?

If your car is stolen but returned to you in a damaged state, you will also be covered if you have Third Party Fire and Theft or Comprehensive insurance. The damage will be assessed. If it is something fixable, you will be covered for all repairs. If it is considered to be a write off, you will receive the full amount for your vehicle, with the amount you receive dependent on your selection of Market or agreed value.

Will my car insurance premium increase after a claim?

It is likely that your insurance premium will increase after a claim, however there may be some instances where it doesn’t increase. Check with your insurer to see what types of claims will affect your premium.

Will my insurance be valid anywhere in Australia?

Most car insurance policies will cover you if you are anywhere in Australia, however you should check with your insurer to see what exclusions there are. If you are planning on being away from your your registered address for an extended period of time, check with your insurer if there is a limit on the number of days you can be out of the state.

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Need Help? Have a look at our car insurance guides

What is comprehensive car insurance?

Comprehensive car insurance is the highest level of cover you can have. Comprehensive Car Insurance covers damage to your car, other people’s vehicles if you are at fault as well as fire and theft.

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What is Compulsory third party car insurance?

CTP is compulsory third–party insurance. It’s also known as “green slip” insurance in some states of Australia and it’s the minimum level of insurance that you can be roadworthy with.

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What is third party insurance?

TPP is Third Party Insurance and covers the costs of repairing or replacing any property, like another car, if it is damaged by your vehicle.

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What is third party property Fire and Theft?

Third Party Property Fire and Theft insurance is a step up from simple TPP and, in addition to cover for damage to other people’s property, you will get cover if your car catches fire or is stolen.

READ MORE

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Compare Comprehensive Car Insurance

Insuring your car can give you ‘peace of mind,’ so you don’t need to unduly worry about being hit with big bills when things go wrong, like if you cause an accident or your car is stolen. There are three basic types of car insurance you can research, compare and find out more about here at InfoChoice.

Comprehensive Car Insurance policies provide the top level of cover for you against your car being stolen or damaged as well as damage caused by you to other people’s property. Third Party Property car insurance protects you from the cost of damage you cause to other people’s property, like their car. Third Party Property car insurance does not protect you if the car is stolen. Third Party Fire and Theft is a step up and provides extra protection against fire and theft.

At InfoChoice, you can research and compare car insurance policies from Australian insurers. You can access calculators, the latest car insurance news, guides to car insurance and car insurance comparison tables to help you find great value comprehensive car insurance policies for you.

Australia has many insurers that offer competitive policies, do your research as the cheapest may not be the best value for you.

Choose the right Car Insurance for your budget and needs. Comprehensive Car Insurance: A great set of benefits that insure you against both damage to your car, as well as the cost of repairing damage to other vehicles, when you are deemed to be at fault. Third Party Fire & Theft Car Insurance: Cover in the event of fire and theft of your car, and damage caused by you to someone else’s property. Third Party Property Insurance: Cover in the event of damage caused by your car to a third party’s property. Looking for cheap car insurance? Compare great value cover options. Get a quote and apply online.

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Are you looking for car insurance? Compare comprehensive, third party property, third party fire and theft car insurance policies from car insurance providers in Australia here. Use our car insurance comparison tables to compare features and services offered by car insurers. Use our news and guides to help you search for and select the cheapest, best value or most comprehensive car insurance product for your own needs.

A typical comprehensive policy may have the following benefits: New-for-old replacement, damage to other people’s property, towing, cover for personal items, cover for caravan and/or trailer, emergency costs, choice of annual or monthly payment options. Some common insured events may be covered by a comprehensive policy: Theft, attempted theft, malicious act, storm, wind, hail, fire, loss or damage to your vehicle – accident or collision. Tailor your policy to meet your needs and budget by considering policy options. These options may be additional where available to the standard benefits provided. Restricted driver discounts, maximum no claim discount (NCD) or rating protection, roadside assistance, agreed value or market value, windscreen excess reduction, accident hire car benefit, variable excess to reduce premium, choice of repairer.

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