Car Insurance Guide: Tips For Choosing
Buying a new car or considering your car insurance options?
Canstar has collated a range of articles that could help you to learn more.
Click on the links below to explore car insurance in Australia.
What is car insurance?
Car insurance is a type of insurance policy a car owner can take out to help reduce the financial costs if their car is involved in an accident, or if it is damaged – or causes damage – in another way. Car insurance can also cover the driver and occupants of the car, depending on the type of policy purchased.
What are the different types of car insurance and what do they cover?
There are several different types of car insurance that you can take out, depending on the type of insurance cover you need:
- Compulsory Third Party (CTP) insurance: protects you financially if you injure or kill someone in an accident, and is mandatory for Australian drivers in every state and territory.
- Third party property damage insurance: covers you if your car causes damage to someone’s property (e.g. their car or home).
- Third party fire and theft cover: covers your car if it’s damaged by fire or stolen, and includes the cover provided by third party property damage insurance.
- Comprehensive car insurance: the most extensive (and generally most expensive) form of cover. Provides a degree of cover for damage to your own car in an accident, as well as the types of cover provided by third party property and fire and theft insurance.
Learn more: Types of car insurance
Choosing the type of insurance that’s right for you could depend in part on what you can comfortably afford, so it may be worth considering the type of cover that suits your needs and your budget. For example, would you prefer the high level of cover generally offered by a comprehensive policy, or would a lower level of cover be enough?
If you decide that comprehensive cover is right for you, you can start your search by comparing policies with Canstar or viewing our latest Car Insurance Star Ratings and Awards report and Most Satisfied Customers report before getting a quote online.
This article was reviewed by our Sub Editors Tom Letts and Jacqueline Belesky before it was updated as part of our fact-checking process.
Amanda is the Digital Editor at Canstar, Australia’s biggest financial comparison site. A journalist for more than two decades, Amanda Horswill has covered a gamut of subjects, including property, lifestyle, hyper-local news, data journalism, the Arts and careers. She’s served as the Editor of Brisbane News, Deputy Features Editor for The Sunday Mail, Deputy Editor – Digital at Quest Community News, and a host of other senior positions at News Corp, prior to joining Canstar. Amanda is fascinated with the ever-changing world of finance. A passionate believer in the motto “knowledge is power”, she strives to translate the news into practical information that will help readers make informed decisions about their future. When not analysing the latest economic news, Amanda can be found poring over local property listings, searching for her next renovation project. Follow her on Twitter or LinkedIn.
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Important Information
- This advice is general and has not taken into account your objectives, financial situation, or needs. It is not personal advice. Consider whether this advice is right for you, having regard to your own objectives, financial situation and needs. You may need financial advice from a suitably qualified adviser. Consider the product disclosure statement (PDS) before making any financial decision. For more information, read Canstar’s Financial Services and Credit Guide (FSCG), and read our detailed disclosure, important notes and liability disclaimer.
- If you decide to apply for an insurance product, you will deal directly with an insurance provider, and not with Canstar. Premiums and product information should be confirmed with the relevant insurance provider. The inclusions mentioned represent a selection of what is covered at the time of writing. Additional terms and conditions may apply to different features. Additional fees may apply to the product. Please ensure that you read the product disclosure statement to determine all the current options and inclusions for the product you are considering. Any insurance company mentioned above may use or be used by another company to arrange, issue, distribute or sell its insurance policies to customers. For more information on the issuer of the policy, please read the product disclosure statement, fact sheets and any other information provided in relation to the product. A copy of the relevant product disclosure statement is available from the insurer.
- If you are seeking to replace an insurance policy, you should consider your personal circumstances, including continuing the existing cover until the replacement policy is issued and cover confirmed. Your current policy may have different features to products currently on the market. Please consider what features are right for you when comparing insurance products and refer to the provider for further details on a policy.