Car insurance in South Australia (SA)

Which type of car insurance should South Australian drivers take out?

In South Australia, every registered vehicle must have CTP insurance. However, there’s no reason why you shouldn’t consider a higher level of cover. When deciding on which new policy to take out, it’s important to think about the range of hazards on the road and whether your current level of car insurance covers your vehicle’s repair and replacement costs.

On top of that, you should also factor in the repair costs for another person’s car or property that you might damage in an accident, plus damage to government property like electric poles and guard rails. Taking out comprehensive car insurance provides cover for all these instances.

Here’s a summary of what you’re covered for under each type of car insurance in South Australia.

Note: There are certain factors and variables that may affect your level of coverage. Always read your Product Disclosure Statement (PDS) for specific exclusions and any additional excess applicable to your cover. Also, read the Target Market Determination (TMD) to determine whether a policy is right for you.

What car insurance features should South Australian drivers look for?

Typically, South Australian drivers can find great value in some of the below features and options in their car insurance:

• Hire car. No need to use the Adelaide Metro or the Glenelg tram if your insurance includes a benefit for as hire car replacement while yours is being fixed.
• Windscreen cover. Windscreen cracked or smashed? Get it replaced at a reduced cost or, in some cases, without any excess applied.
• Roadside assistance. Broken down on the side of a road? Roadside assistance will get you back on your wheels safely with the convenience of 24/7 service.

Although some of these features might be offered as optional extras and come at an additional cost, they can give you peace of mind and be well worth the expense, especially if you find yourself in a predicament.

Car insurance costs

The cost of car insurance in South Australia

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.

How much do premiums increase after a claim?

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.

Does my car insurance become cheaper as I get older?

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.

Are there ways of reducing premiums?

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.

Important to know

Is car theft in South Australia high?

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.

Will moving house affect my car insurance in South Australia?

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.