Comprehensive Car Insurance Comparison

A car insurance excess is the sum of money you pay when you make a valid claim on your policy. The remaining cost for repairs or replacement is then covered by your insurer. There’s technically a limit on what your insurer will cover, but it’s typically millions of dollars (so be careful not to write off a Bugatti Veyron!)

A clear example would be if you have an excess of $500 and your vehicle is damaged in a collision. Repairs could end up costing thousands of dollars, but you only have to pay $500 directly to your insurer.

Comprehensive policies are not exempt to excess. The most common types of insurance excess are:

• Standard excess: an out-of-pocket expense when you make an at-fault claim.
• Voluntary excess: you agree to pay a specified amount in addition to another excess, perhaps in exchange for a cheaper monthly premium.
• Age/inexperienced driver excess: a different excess rate for younger, less experienced drivers. These can be more expensive than a typical excess.
• Undeclared or unlisted driver excess: an excess that is potentially pricier for claims involving drivers not listed on your comprehensive car insurance policy.
• Glass/windscreen excess: you can opt for a reduced windscreen excess or even a ‘free’ windscreen replacement. However, this option may cost you more in premiums each month.

Having a higher excess is usually attractive with safer drivers, as it decreases the price of your premium, and vice versa with a smaller excess. Lowering or increasing your excess is entirely your choice, so it might be a good idea to weigh up what’s more important to you in the event of a car accident.

Your insurer should advise you if an excess payment is required when you make a claim. It’s important to keep in mind that different insurers have different excess amounts, as stipulated by your policy.

This is one question you’re probably asking yourself, and, the answer isn’t that simple. It all depends on what’s important to you, and of course, your car.

If you are interested in taking out extra cover for additional peace of mind, some of your options may include:

• Emergency costs. In the event of an emergency, you may have to deal with a lot of unexpected costs. However, your insurer can pay for accommodation expenses, or emergency travel if your car is immobile and requires towing outside of your home’s 100 kilometre radius.
• Accident hire car. Your car may be covered for repairs or replacement, but if it’s un-driveable or written off, how will you get around in the meantime? For example, if you own a European car, you might be left waiting weeks for a replacement part to be shipped, which can add stress to an already undesirable situation. Luckily, a complimentary hire car provides you with wheels while you wait for your car to be fixed or replaced, so you’re not left stranded.
• Personal effects. Some standard comprehensive policies cover personal effects that are lost, stolen, or damaged while inside a vehicle. For example, if your car is broken into and your laptop is stolen while you’re ordering a flat white on the way to work, your car insurance may cover you to replace your laptop. Limits and restrictions may apply, and vary between insurers.
• Roadside assistance. If your car breaks down, you run out of fuel, or you puncture a tyre; not only will you stranded, you’ll also be paying out-of-pocket expenses for repairs and (possibly) a tow truck. Adding roadside assistance cover to your existing comprehensive policy could mean that you’re sorted for various mechanical or electrical breakdowns (including battery issues), lockouts, bogs, flat tyres, and – in some cases – emergency fuel.
• Adjusting your excess. Some policies allow you to choose an excess amount. Choosing a higher excess may mean a lower premium with some insurers. While the savings offered by reducing your excess can be tempting, make sure you weigh up the potential savings against the risk of making a claim, because the higher the excess, the more you will be left out of pocket if something happens to your car.
• Replacement of keys. If you’re habitually losing your car keys, or if your keys have been stolen, then replacement keys might be an option. Some insurers will cover the costs of replacing your keys, or keyless entries, up to a set amount listed on your policy.

Making a claim on your comprehensive car insurance is usually a simple process. You need to ensure your insurance details are in your car at all times (glove box or centre console), so they are always at hand in case you’re involved in an accident. Exchange details with other parties involved in an incident, and then contact your insurer. If possible, take photos at the location of the accident and the damage.

Most insurers provide a 24/7 claims lodgement and assistance service over the phone, while others also offer online claim lodgement. Give them a call and they will talk you through the process on lodging a claim.

The severity of the damage to your vehicle may determine how your claim is assessed. If the incident is minor, you may be asked by your insurer to take your vehicle to one of several nominated repairers, who will undertake repairs.

If the incident is more severe, your car may need to be assessed by your insurer’s assessor. If your vehicle is not in a drivable or roadworthy condition, due to the nature of the damage, your insurer may arrange to have it towed directly to their facility for a claims assessment.

It’s imperative that you always read the insurer’s Product Disclosure Statement (PDS) which outlines the conditions of cover including information about:

• what your policy covers you for, and your responsibilities to meet these conditions;
• your duty to disclose all information that is asked of you both at a policy purchase and renewal level; and
• Understanding your policy benefits, features and entitlements.

Discounts and cheaper insurance policies apply to customers that satisfy certain requirements, especially those who lower/minimise their ‘risk profile’. For example, drivers who don’t drive more than 15,000 kilometres per year may qualify for a low-kilometre policy, and pensioners qualify for their own specialised policy – both of which contain discounts because of the perceived reduced risk of these types of drivers.

If you do not make an insurance claim over the life of your policy, your insurance provider may offer you a no claims discount (otherwise known as NCD) when it’s time to renew your policy. If you don’t claim for multiple years, the savings may compound – up to five years.

Comprehensive car insurance is not compulsory in Australia. That being said, it is a legal requirement for every car owner in Australia to have Compulsory Third Party (CTP) insurance as a bare minimum of cover, which is included in your registration fees (in some states).

Comprehensive cover does provide greater protection from significant repair/replacement costs, and may save you money in many different situations (e.g. traffic accidents, thefts, storms).

Yes, you need compulsory third party (CTP) insurance as it covers you, your passengers, and others for injuries relating to a motor vehicle accident. Comprehensive car insurance does not offer this type of cover.

Compulsory Third Party (CTP) insurance is, as the name suggests, compulsory. It is a legal requirement upon registering your vehicle in Australia to take out this cover. It covers your liability against personal injury caused by you in a motor vehicle incident.

So, if you’re in an accident, where you’re at fault, and someone gets injured, your CTP protects you. It does not cover damage to vehicles or property, which is why it’s important to have comprehensive car insurance to safeguard you if your car is damaged, stolen, or if you damage a third party’s vehicle, or other related property.

You can opt for a comprehensive car insurance policy with roadside assistance as an optional extra, which may cost you more in the long run. Depending on your insurer, and level of cover, roadside assistance usually includes mobile technicians, towing, and optional extras such as emergency accommodation with additional taxi fares.

Most insurers offer roadside assistance as an option with comprehensive cover, and it is your responsibility to read through the policy’s terms and conditions to understand what you’re covered for.

You can cancel your policy at any time. You will need to contact your insurance provider and notify them of your intentions. Insurers should have all of their details listed online, and most will need to be notified in writing (email, letter, or fax).

Be aware that some policies may have cancellation fees. If you decide to cancel your policy, you may qualify for a refund on the unexpired parts of your premium, less any fees your insurer has stipulated on your policy’s product disclosure statement (PDS).

A comprehensive car insurance policy insures your vehicle – not you.

Your comprehensive car insurance policy insures one vehicle. Therefore, you’re not covered by this policy if you use another motor vehicle and get into an accident. However, if you’re listed on this other vehicle’s insurance policy as a listed driver, for example, you may be covered by another policy. This will depend on the owner’s policy though.

Like other insurance policies, you’re only covered for driving the vehicle which the policy insures. Depending on your policy and insurer, you may have other people nominated as drivers who will be covered in the event of an accident.

Full disclosure to your insurer is always encouraged to avoid any confusion, or worse – voiding your cover.