Car insurance in South Australia

Comprehensive car insurance offers the broadest policy coverage. It covers car theft, repair costs for a third party’s property and weather-related damages, as well as repair or replacement costs for your car to cover damages caused by an insured event. Optional cover for purchase may include windshield replacement, hire car, roadside assistance and more.

Third Party Fire and Theft insurance covers the cost of damage you cause to other vehicles and property in an accident, as well as limited cover for replacement costs of your vehicle if it’s stolen or lost in a fire. However, it doesn’t cover your vehicle’s repair costs if you’re at fault in a traffic incident.

Third Party Property Damage insurance pays towards the repair costs for accidental damage you cause to someone else’s vehicle or property. Typically, it will not cover damages to your car. Some insurers, however, may offer limited cover for your vehicle if damaged in a not-at-fault accident with an uninsured driver. This third-party car insurance is the most basic level of optional car cover.

Compulsory third party insurance covers certain legal liability costs if you cause injury or death to someone else in an accident. It’s included in your vehicle registration and you have the choice between CTP insurers in SA.

The cost of car insurance in South Australia varies depending on the level of cover you take out and your circumstances. Some of the factors that can influence the price of premiums include:

• How old you are. Younger drivers tend to be hit with higher premiums because they’re statistically more likely to be involved in an accident.
• Your driving and claims history. If you’ve made a claim in the past or have a driving record that’s not squeaky clean, insurers may increase your premium to reflect your increased risk.
• The type of car you drive. For example, vehicles that are more difficult to replace or repair (such as vintage or prestige cars) may cost more to insure.
• Your excess. The amount you agree to pay if you need to make a claim can affect your premium. Opting for a higher excess usually reduces your premium, but means you’ll have to pay more if you need to claim.
• Where you live. Some suburbs in South Australia may have higher rates of car claims than others, which can influence your premium. Where you park your car at your address (e.g. in a garage or on the street) can also have an impact.

While making claims does have an impact on your premium, an at-fault claim will increase it a lot more than a not-at-fault claim would. If you make multiple claims within a year, insurers may increase your premiums to account for the increased risk.

Younger drivers typically pay higher premiums than older drivers. So, provided you don’t make a claim, your insurance costs may reduce as you get older. However, there are many factors that impact car insurance premiums, so there may be other reasons why your insurance costs what it does besides your age.

Immobilisers, antilock brakes, alarms and other anti-theft features may help reduce your car insurance premiums. Even just parking your car in a locked garage as opposed to a busy street can help reduce the cost of cover, especially if you’re parked somewhere with a high rate of theft or vandalism.

South Australia has a low number of motor vehicle thefts, especially when compared to other states like New South Wales and Queensland. While the rate of car thefts in the state was down in recent years, 3,620 South Australians had their car stolen or used illegally in 2022.¹

Even though car theft is considerably low, it’s a possibility that South Australians will want to prepare for. Car theft can be covered by either Third Party Fire and Theft or comprehensive car insurance policies, and these policies can also cover vandalism and malicious damage.

Moving house may affect your car insurance premiums. For example, if you move to a South Australian postcode that’s considered riskier due to higher rates of theft, or to a busy city centre where car accidents occur more frequently, you may notice a rise in your premiums to reflect the increased cost of insuring your car.

Similarly, your premiums may reduce if you move to a safer area, which is why it’s important to let your insurer know as soon as you relocate.