Compare Comprehensive Car Insurance

Please note that these are a general explanation of the meaning of terms used in relation to this topic. Your provider may use different wording and you should read the terms and conditions of your policy carefully to understand what you are and are not covered for. Refer to the product disclosure statement (PDS) and other documentation from your provider. You may wish to obtain advice from a suitably qualified adviser. 

How much does car insurance cost?

The cost of car insurance, known as the premium, is typically calculated by insurers based on the level of risk they associate with the driver and their vehicle, plus the level of cover offered by the policy. To calculate the risk, insurers generally take the policyholder’s personal circumstances into account – such as their age, gender, driving and claims history, and where they live – as well as details relating to the vehicle, including its make, model and age. Generally speaking, the greater the risk the insurer believes they are taking on by insuring a driver, the higher that driver’s premium will be.

The type of policy you are buying will also dictate the cost of car insurance. For example, a comprehensive car insurance policy will typically cost more than a third party property policy, but will generally offer a higher level of cover.

To give you an idea of cost, Canstar has calculated the average costs of comprehensive car insurance policies on its database.

What is comprehensive car insurance?

Comprehensive cover is the highest level of policy coverage available in Australia and covers drivers for a range of risks, whether it’s the cost of damage you have caused to someone else’s vehicle in an accident, or damage or loss of your own vehicle due to an insured event.

Other forms of cover generally only cover drivers for damage they cause to other people’s property, or damage or loss of their own vehicle in limited circumstances (usually fire and theft). Comprehensive cover generally extends to other risks on top of these, such as damage caused to your own car by extreme weather or in an accident.

In addition, a comprehensive policy may cover you for some of the other costs associated with an accident or other insured event. For example, depending on the policy, it may cover the cost of a replacement vehicle like a hire car while yours is being repaired or replaced, or some insurers may let you purchase this as an optional extra.

What is third party, fire and theft insurance?

This is a policy that covers damage to the property of others, and some limited cover for your own vehicle if it is damaged or lost because of fire or theft. It generally does not cover damage to your own car caused by a car accident.

What is third party property insurance?

This is a policy that covers the cost of repairing damage caused by your vehicle to other people’s property, such as their car. It generally also covers your legal costs if they sue you over that damage. It does not cover damage to your own car, however.

What is compulsory third party (CTP) car insurance?

CTP is a compulsory car insurance policy that covers you if you injure or kill someone in a motor vehicle accident. The specific conditions on this type of cover are different from state to state, but no matter where in Australia you are, it is compulsory to hold CTP in order to register your vehicle.

What is excess in car insurance?

An excess is an amount of money you pay your insurer towards the cost of your claim. Different excesses might apply to different types of claims, so you should check your policy for details. You may be able to pay a lower premium if you agree to a higher excess, but you need to be sure that you could afford to pay the excess unexpectedly in an emergency.

How do I check if my car is insured in Australia?

This will depend on the type of car insurance. For CTP cover, because this is included with your registration, you would need to check with your state or territory government whether your vehicle is currently registered. Follow the links below to check your vehicle’s current registration status in your state or territory.

• New South Wales
• Northern Territory
• Queensland
• South Australia
• Tasmania
• Victoria
• Western Australia

For other, non-mandatory forms of cover, you can check your policy documents for the start and end date of the policy, or contact your insurer to check if your vehicle is currently insured, for what events and for how much.

Can you insure a hail-damaged car?

When taking out car insurance in Australia, the provider will generally ask whether the car has been damaged by hail in the past. If it has, this may limit the insurance you can take out. For example, according to Queensland-based insurer RACQ: “most insurers won’t cover vehicles with existing hail damage, or at best, they’ll limit the cover”.

It’s important to disclose up front with the insurer if your car has hail damage, as it may refuse to pay out on a claim if it later discovers the car was already damaged when the policy was taken out.

As long as your vehicle is eligible to be registered in Australia, you will be able to get CTP insurance, even if your car has existing hail damage.

Which car insurance company is the best in Australia?

The car insurance company and policy best suited to you will depend on your circumstances and what type of cover you need. It’s also worth bearing in mind that some insurers only operate in certain states, so the best car insurer may be different depending on where you live.

One way of assessing car insurers is to look at the winners of Comprehensive Car Insurance Awards. Each year Canstar names national Outstanding Value Award winners, as well as winners in a variety of states.

Are there any exclusions with comprehensive cover?

While it offers a higher level of cover than other types of car insurance, a comprehensive car insurance policy still won’t cover all risks on the road. For example, below are some events and other exceptions that are generally not covered by car insurance.

• Restricted drivers: For example, an accident where the driver of the insured vehicle does not have a licence or is otherwise not covered by the policy (e.g. some insurers charge a lower premium if you agree that your vehicle will not be driven by anyone under 25 years old, meaning cover wouldn’t extend to drivers under this age)
• Driving under the influence of alcohol or drugs
• Modifying your vehicle without notifying your insurer
• Using your car for commercial reasons (unless you have disclosed this to your insurer and it has agreed to cover you for this kind of use)
• Overloading your car with too many passengers or too large a load
• Mechanical faults or gradual wear and tear to your vehicle

What does agreed value mean?

In car insurance, agreed value cover is where the amount a vehicle is insured for is fixed by agreement between the insurer and the policyholder. The other main option is to insure your vehicle for its market value (see ‘market value’ below).

What does market value mean?

Market value car insurance is when your vehicle is insured for what it would be worth on the market, or what it would cost to replace it with another car of the same make, model, age, and condition that your vehicle was in before the loss or damage. This is one option for your sum insured; the other option is to insure your vehicle for an agreed amount (see ‘agreed value’ above). Market value policies tend to be cheaper than agreed value ones, but the amount your car is insured for may not be as high.

What is a no-claim bonus?

A no-claim bonus is a discount on premiums that some insurers may offer drivers who haven’t made any recent car insurance claims. Some providers may offer a ‘protected no-claim bonus option’, where they will let you keep your no-claim bonus after you make your first claim in any one period of cover, under certain conditions.

What is a nominated driver?

When you sign up for a policy, you must advise the insurer who will be listed on your policy as being allowed to drive your vehicle (usually yourself and one or more family members). These people are the nominated drivers. Other people who drive your car but are not nominated drivers would be required to pay an additional excess if they are in an accident while driving your vehicle and you need to make a claim as a result. Alternatively, in some cases your claim may be refused if an unlisted driver was behind the wheel.

What is a premium?

A car insurance premium is a regular amount of money you pay for the cover your policy provides. Depending on your insurer, it may be paid once annually or more frequently (e.g. monthly or fortnightly). Your premium must be paid on time for your car to remain covered.

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Canstar rates and researches dozens of Australian comprehensive car insurance providers every year. Below is a list of the providers recognised as state or national winners in Canstar’s most recent expert and/or customer satisfaction Awards.

Bingle

Budget Direct

Coles Insurance

NRMA

RAA

RAC

Suncorp

Youi

Woolworths