Car Insurance for 4WD

Do you consider yourself a bit of an off-road, adventure-seeking four-wheel drive (4×4) motorist? Do you like the additional space they offer? Whatever your reason for loving your 4WD vehicle, you might want to consider getting 4×4 car insurance cover. We take a look at what it is and how it works.

When it comes to insuring one of these vehicles, it can be worth considering a specialised policy; particularly if you have modified your 4×4 or plan to take your vehicle off-road.

What is 4×4 insurance?

4×4 insurance is often a more specialised form of car insurance with features tailored for off-road driving, accessories and/or modifications made to the vehicle. Some policies may even provide cover for a trailer you may tow.

As well as mandatory compulsory third-party (CTP) insurance cover in Australia, 4WD owners would typically be encouraged to also get specialised cover for third-party property damage, third-party fire and theft, or comprehensive car insurance.

What to look for in a 4×4 insurance policy

There are a number of specialised policies that cater to off-road 4×4 use. These come with several additional features to provide extra protection to car owners, which often cost extra.

Some comprehensive car insurance policies provide a level of coverage for some 4×4 vehicles, but they can vary a lot. That’s why it’s important to be aware of what to look for and read the Product Disclosure Statement (PDS). If in doubt, consider checking with your insurer to confirm whether you’ll be covered for what you intend to do with your 4×4.

When you’re taking out a policy for your 4×4, here are some considerations:

Does your 4×4 insurance cover beach and off-road driving?

If you intend to use your 4×4 vehicle off-road, it is a good idea to check that your insurance policy will cover you for driving off the bitumen, on a beach or on a private property. While most insurers will generally cover you for incidents that occur on the road, they are less likely to cover you if you’re stuck in the mud on a dirt road, off the beaten track or bogged in a sand dune. Some do, but they may require special conditions, like driving the car only in the way outlined in your manufacturer’s recommended guidelines. It’s also important to think about the potential recovery costs, if you were to become stuck in a remote location. Some policies may offer roadside assistance at an additional cost, however, many policies specify that vehicle recovery staff must be able to reach your location in a two-wheel drive vehicle. This may be difficult if you’re off-road.

Are your 4×4 accessories insured?

If you are adding any modifications or accessories to your vehicle and want to make sure they’re covered, it could be a good idea to get them insured. Add-ons to your 4×4—like specialised tyres, bull bars, LED headlights and roof racks—could end up being close to the value of your vehicle. So, if they are not included in your 4×4 insurance policy you could get a shock come claim time. Make sure to check with your insurer what the total insured amount is for any add-ons, because in some cases the level of cover can be far below the actual cost of replacement.

Is your 4×4 vehicle insured under a market value or an agreed value policy?

Once you purchase a vehicle its value typically depreciates over time. This is something you need to keep in mind when insuring your 4×4. In the event that your car is written off following an accident, the amount you would receive from the insurer under a market value policy is based on what your car would sell for on the open market before the accident. The market price of your vehicle decreases over time, which means you are actually covered for less the longer you are insured under a market value policy. Because the market price is generally modelled off a standard vehicle, any modifications you have made will not be covered unless you list them in your policy.

On the other hand, an agreed value policy is an amount fixed after discussion and agreement between you and the insurer (within reason), with the amount staying the same each year. The cost for agreed value policies tends to be higher than for a market value policy, but they typically offer a greater level of certainty around the compensation you could expect to receive if you need to make a claim. Bear in mind that not all insurers will necessarily offer both sorts of cover, so it’s worth checking what sort of cover a particular policy offers before committing to it.

You may decide that the potentially lower premiums on offer under a market value policy are more important to you than the greater certainty of coverage that could be available under an agreed value policy.

Check out Canstar’s breakdown of the differences between market value and agreed value car insurance policies.

Some additional questions to ask about 4×4 insurance include:

• Is your car legally and properly registered? If you are driving a 4×4 that doesn’t meet legal requirements, insurance providers may dismiss your claims.

• Does your 4×4 insurance cover free windscreen replacements? Four-wheel driving on unsealed roads could potentially leave you with a cracked windscreen, so it’s worth weighing up whether paying a bit more in premiums to cover you down the track is worth it.

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What is excluded from 4×4 insurance?

Like any car insurance policy, illegal or reckless behaviour that leads to a claim will often cause that claim to be denied. Other common exclusions for 4×4 insurance can be:

• Undisclosed car modifications: If you fail to inform your insurer about any modifications that have been made to your vehicle, claims relating to the modification itself or more generally may be rejected.

• Participating in races or official driving competitions: Even if these events are legal, most providers will not cover you for claims arising from these types of competitions. There may be, however, some specialised policies that include coverage for racing, but they will often be more expensive.

• Mechanical failures: This refers to failures and breakdowns caused by electrical or mechanical issues with your car that result from general wear and tear or faulty parts. This will typically apply regardless of whether it was caused by off-road driving.

Do I need 4×4 insurance?

No matter the type of car you’re driving, it will need some form of insurance to cover you for the unexpected. At a minimum, you will need compulsory third party (CTP) insurance to be able to drive on Australian roads. But a 4×4 vehicle could make the level of cover you choose even more essential, especially if you’re more likely to be adventuring outdoors or modifying the vehicle.

As well as standard insurance inclusions, consider what else you may need on a 4×4 insurance policy to make your life easier (like roadside assistance, rental car hire or trailer cover), and make sure it’s of value to you.

Can you get insurance that covers camper trailers?

Your camper trailer may be covered under a 4×4 insurance policy, but only if it’s being towed by your 4WD. There may also be coverage limits if it becomes damaged in an accident. Some providers may offer specialised camper trailer or caravan insurance policies, which provide coverage for damages caused by an accident.

Can young drivers get 4×4 insurance?

Young drivers, specifically those under 25, generally can get 4×4 insurance. As with most car insurance policies, however, they will often be more expensive for younger inexperienced drivers. Young drivers, including learner drivers and provisional licence holders, may find the 4WD coverage that they are offered may vary between different providers, so it could be a good idea to check and see what is and isn’t included in a policy. This can be found in a policy’s PDS.

How much does 4×4 car insurance cost?

There are many factors that could affect the premiums you pay on 4×4 insurance. These could include your gender, age, driving history or even the colour of your car. Premiums could also be higher for four-wheel drivers on an agreed value policy if the agreed value is higher than what the car would sell for on the open market (market value).

What to consider when choosing 4×4 car insurance

Before you take out a specialised 4×4 insurance policy, read the Product Disclosure Statement (PDS), Target Market Determination (TMD) and other relevant documentation thoroughly so you are aware of the terms and conditions involved, including the benefits and exclusions and any additional excesses that may apply.

If you are buying 4×4 insurance from the same provider you use for other insurance policies, it could be worth checking to see if you are entitled to a multi-policy discount.

Cover image source: Pawonike Gallery/Shutterstock.com