Car insurance protects you against financial loss for damages resulting from car accidents, theft, weather events and other unforeseen costs according to your policy type. A car insurance policy helps pay for the cost of damage to cars, property, and even people.
It can cover you if you cause personal injury in an accident or if you damage property or another vehicle. If you opt for a higher level of coverage, you may also be covered for the repair or replacement costs of your vehicle as a result of collisions, fire, theft, and weather events. Most policies will vary in coverage (and price), which is why it’s important to review your options carefully.
The cost of insurance depends on the type of cover you hold (i.e. Third Party Property, Third Party Fire & Theft or Comprehensive), and how risky you are to insure, meaning premiums can vary.
When using our online comparison, we ask you to enter certain details to help you find products that may suit your needs and budget. Each of these questions can impact your premiums in some way, including:
With several different types of car insurance out there to choose from, it can be hard to keep track of what each one may or may not cover. Of course, the inclusions, benefits and optional extras available may vary between the many providers out there, so you should always read the Product Disclosure Statement (PDS) of any insurance policy before purchasing it.
To help you understand the types of car insurance, we’ve compiled the following table as a simple way to compare them; however, the information in this table should be used as a guide only. Just so you’re aware, the table’s information is based on quotes for each type of insurance from Budget Direct, Virgin Money and Australia Post for a 2010 Mazda 3 sedan driven for personal use by a female driver born in 1985 with a Rating 1 NCD.
You can also compare policies and providers for your own car and driving history just by using our free, easy-to-use comparison service.
|What is and isn’t covered?||Third Party Property Damage||Third Party Fire and Theft||Comprehensive||CTP/Green Slip|
|Damage caused by collision to your own vehicle||No||No||Available||No|
|Loss or damage caused by you to a third party’s vehicle/property (legal liability)||Available; e.g. $20 million||Available; e.g. $20 million||Available; e.g. $20 million||No|
|Loss or damage to your own vehicle caused by weather (storm, flood, hail)||No||No||Available||No|
|Loss or damage to your vehicle caused by theft||No||Yes||Available||No|
|Hire car after theft||No||Available; e.g. up to $1,000 or 14 days (whichever comes first)||Available; e.g. up to $1,000 or 14 days (whichever comes first)||No|
|Loss or damage to your vehicle caused by fire||No||Yes||Available||No|
|Loss or damage of personal possessions/effects||No||No||Available; e.g. up to $500||No|
|Damage to your vehicle caused by an uninsured driver||Available||Available||Available||No|
|Emergency transport and/or accommodation||No||No||Available; e.g. $100 per day, $850 in total||No|
|Key replacement||No||No||Available; e.g. $1,000||No|
|Death benefit||Available; e.g. $5,000||Available; e.g. $5,000||Available; e.g. $5,000||No|
|Legal liability for injuries or death to other people||No||No||No||Available|
|Reduced or no windscreen excess||No||No||Available||No|
|Restricted driver discount||Available||Available||Available||No|
‘Extras’ are inclusions or perks bundled into car insurance policies that are competing for your business. Otherwise known as ‘benefits’, some common extras you may find incorporated into your policy are:
Depending on your insurer, there are various extras available when taking out car cover. Like all insurance products, it’s important to understand the fine print when choosing extras, so that you fully understand what you’re covered for, and how adding extras may affect the cost of your premium.
You can potentially save on premiums by:
Always disclose as much information to your insurer as possible; if you decide to hide your claims history, for example, your cover could be cancelled or future claims could be denied.
Excess is the amount you’ll pay your insurer when you make a claim on your policy. This excess is agreed upon when you first take out the policy. When you make a claim, you will pay this amount, while your insurer will pay the rest of your repair/replacement costs up to the agreed amount on your policy.
There are different types of car excess:
If you are not-at-fault in an accident, you may not be required to pay an excess. The exception to this rule is when the at-fault party is not identified. For example, say you’re involved in a hit and run and the guilty party is not found or identified, you may still be required to pay the excess.
To confirm all excesses that may apply to you, be sure to check your Product Disclosure Statement (PDS) and Insurance Certificate.
For more information, visit excess explained.
Liability refers to the person who is legally responsible, or at-fault, in an accident. For example, you may be liable for third-party damage if you didn’t give way and collided with a vehicle that was already on a roundabout.
Compulsory Third Party (CTP or Green Slip cover) is the only form of car insurance that covers your legal liability if you’re at-fault in an accident where another person is injured or dies.
Classic car insurance is a broad term referring to a product that covers classic, vintage or prestige vehicles. It is broken down into a variety of specific types:
Many variables determine car insurance premiums, including:
With these factors in mind, it’s difficult to calculate average prices when every policy is different. However, to give you an idea of how much car insurance may cost in your area, we completed some quotes through our comparison tool for a 42-year-old female driving a 2010 Mazda 3.
As you can see in the table below, prices for comprehensive policies can vary significantly, which is why it’s important to shop around for a policy that suits your lifestyle.
|State/territory||Least expensive premium (per year and per our panel of insurers)||Most expensive premium (per year and per our panel of insurers)||Average premium (per year and per our panel of insurers )|
Source: Compare the Market quote, quotes produced 27/3/2019 from our panel of insurance providers
N.B. These prices are based on quotes for a 2010 Mazda 3, which is garaged, has no accident or hail damage and hasn’t been modified. All drivers will be 25 years or older. The car is specified for private use, to be driven 15,000km/year by a 35 year old female driver with a rating 1 NCD (no claims discount) for the following postcodes: 4157 (Capalaba, QLD), 2088 (Mosman, NSW), 2902 (Kambah, ACT), 3182 (St Kilda, VIC), 7005 (Sandy Bay, TAS), 6069 (Ellenbrook, WA) and 5109 (Salisbury Park, SA).
For help finding the best car insurance in Australia, view our list of providers listed below. Please note that this is subject to change at any time.
To save time and simplify the process, you can compare numerous policies that are available through our car insurance comparison service. While we don’t compare every provider on this list, you can use our tool to compare policies from some of Australia’s top car insurers – it takes only minutes!
Accurate as of 5/3/2019
As General Manager of General Insurance at Compare the Market, Stephen Zeller is passionate about demystifying car insurance for consumers, so they have a better understanding of what they’re covered for. There are different types of car cover: comprehensive, third party fire and theft (TPFT) and third-party property damage (TPPD).
Stephen has more than 30 years of experience in the financial services industry, and is an Allied Member of the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) and helps review general insurance content on Compare the Market to ensure it accurately breaks down complex insurance topics.
Just because you’re young, it doesn’t mean you have to pay through the nose for car insurance. See if you can save on your insurance at Compare the Market today.