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What types of car insurance are available?
There are four different types of car insurance in Australia. These are:
- Compulsory third party (CTP) insurance: covers you financially if you injure or kill someone in a car accident. In Western Australia, CTP insurance will be included in your car registration cost.
- Third party property damage: covers you if you damage someone else’s property, such as their car or home.
- Third party fire and theft cover: provides the same cover as third party property damage insurance, plus added cover for damage to your car from a fire or theft.
- Comprehensive car insurance: provides the most extensive form of cover. It provides cover for damage to other people’s property, damage to your own vehicle caused by fire or theft, and accidental damage to your vehicle. It may also provide additional cover, depending on your policy, such as damage caused by floods and storms.
Comprehensive car insurance is not compulsory in Western Australia (only CTP insurance is mandatory) however, it may be worth taking out if you want a higher level of cover.
How can I compare comprehensive car insurance policies?
If you are shopping around for a comprehensive car insurance policy, consider factors such as:
- the premiums charged
- what is covered by the policy and whether you will be covered for the risks you want (for example, if your area is prone to flooding, you may want your policy to cover this)
- the level of cover
- whether any discounts are available (such as online discounts and no claim bonuses)
As part of Canstar’s annual Car Insurance Star Ratings and Awards, Canstar compares car insurance policies in Western Australia and other states and territories. Products are rated based on premiums charged, the level of cover provided and other features on offer. According to Canstar’s research, you could save over $500 on average by choosing a 5-Star Rated product compared to a policy that didn’t receive a top rating. You can compare policies based on their Star Rating using our comparison tables.
How much does car insurance cost in WA?
To work out your comprehensive car insurance premiums, insurers will consider a range of factors including the level of cover you choose, your age and gender, the specific vehicle you are insuring, your driving history, the excess you choose and where you live.
Drivers in Western Australia pay some of the lowest comprehensive car insurance premiums in Australia. As part of Canstar’s Star Ratings, we collected premium quotes for car insurance policies across Australia. On average, we found that premiums in Western Australia were the lowest for under 25s, 25s to 29s and over 50s, and the second lowest (after Tasmania) for the other profiles considered. Canstar does not currently include the ACT and the Northern Territory as separate profiles.
Average annual comprehensive car insurance premiums in WA
| Age | Average premium |
|---|---|
| Under 25 female | $1,409 |
| Under 25 male | $1,583 |
| 25 to 29 | $1,064 |
| 30 to 49 | $815 |
| Over 50 | $634 |
| Family with young driver | $1,491 |
Source: www.canstar.com.au. Based on comprehensive car insurance policies rated in Canstar’s 2021 Comprehensive Car Insurance Star Ratings. Premiums include quotes for both new and used cars for a range of scenarios, with a state-specific target excess ranging from $600 to $750.
What are the risks on the road for drivers in WA?
When you apply for comprehensive car insurance, the insurer will consider a range of location-related factors. For example, this could include theft and accident rates in your area and the likelihood of weather events like flooding and storms.
Western Australia currently has an average rate of car thefts compared to other parts of Australia. According to data from the National Motor Vehicle Theft Reduction Council, over a recent year more than 11% of total car thefts in Australia occurred in Western Australia. By population, this translated to a theft rate of over 2 per 1,000 registrations, but slightly lower than the theft rate across Australia (2.25 per 1,000 registrations).
In terms of car accidents, the fatality rate in Western Australia is higher on average by population than every state and territory in Australia except the Northern Territory. According to the Western Australian Government, the five-year average fatality rate in Western Australia is over 6 per 100,000 people. In comparison, the five-year average fatality rate for Australia is just under 5 per 100,000 people.
What are the best car insurance policies in WA?
The best car insurance policy will depend on your circumstances and the level and type of cover you need. When comparing policies, ask yourself:
- Do you want to keep premium costs down or are you willing to pay more for a higher level of cover?
- Do you think you will make claims often? If not, you could choose a higher excess to help save money on premiums but you will have to pay a higher out-of-pocket cost if you do need to make a claim.
- How often do you drive your car? If you drive it regularly, you might want to opt for a policy with a higher level of cover.
- What risks do you want to be covered? For example, is your area prone to theft or weather events like flooding or fire?
- Do you want cover for optional extras, such as windscreen protection? Including this on your policy may raise your premium.
- Do you need to have cover for additional drivers, such as younger drivers? If you don’t, you might be able to save money by restricting the drivers covered in your policy.
You can also check out which insurers have won Canstar’s Car Insurance Awards. Canstar gives state-based Awards to the insurers with the highest combined performance across the profiles considered.
Cover image source: f11photo/Shutterstock.com
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This content was reviewed by Sub Editor Jacqueline Belesky and Finance and Lifestyle Editor Shay Waraker as part of our fact-checking process.
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