As long as your caravan is roadworthy, it's covered by the registered towing vehicle’s Compulsory Third Party (CTP) insurance (otherwise known as Green Slip in New South Wales).
With CTP insurance, you’re protected against your legal liability if another person is injured or killed in an accident where you’re at fault. Your car’s additional insurance may offer a benefit up to a certain limit, which may cover some of the caravan’s repair costs. As this benefit may be limited, it’s important you chat to your insurer to see what you could be covered for, and how much you could receive back if you make a claim.
Try our online car insurance comparison tool to find out which policy could provide cover for your caravan.
Contact your insurer and ask about adding your child to your car insurance policy before they take to the road. If they drive your car, become involved in an accident, and aren’t listed on your policy as a regular driver, you could be hit with an unlisted driver excess on top of your excess if they are at fault.
Also, ensure you don’t have a driver age restriction in force on your policy. If you have declared that no drivers under the age of 25, for example, would drive your car and your child is 18, your claim could be rejected if they are involved in an accident.
Every registered car on Australian roads must have a minimum level of cover called Compulsory Third Party (CTP) insurance (otherwise known as Green Slip insurance in New South Wales). This means if you drive your parents’ car and become involved in an accident, the injury or death of a third party would be covered.
If your parents have a higher level of insurance, like comprehensive cover, the repair and damage costs may also be covered, depending on the nature of the accident and their policy. If you haven’t been declared on the policy as a driver, your parents will attract an undeclared driver excess on top of their usual excess when they make a claim.
Furthermore, your parents may have a driver age exclusion on their policy, which means nobody under a certain age should be driving their vehicle. If you’re under this age restriction and become involved in an accident, it’s possible your parents’ claim may be rejected.
Typically, insurers don’t require you to list a learner driver on your car insurance policy until they obtain their provisional or open licence. If your learner driver is involved in an accident, you'll usually attract an additional excess on your policy.
If any other drivers use your vehicle (i.e. provisional or open-licence drivers) and you don't declare them on your policy, you may be hit with an undeclared driver excess.
If you’re ever unsure, it’s best to contact your insurer to be certain of their requirements.
No, car insurance doesn’t cover maintenance costs. Your insurer won’t cover claims arising from wear and tear, rust, rot, or any other signs of neglect, so be sure to keep your vehicle in good shape with regular services. Don't forget to take care of the interiors as well!
You're only covered for drunk driving accidents if you aren’t under the influence of alcohol or any drugs. If you don’t comply with your policy’s Product Disclosure Statement (PDS) and break the law on the roads, you will not be covered for any claims.
Your claim can also be denied if your judgement is impaired from a prescription medication that impairs your motor or decision-making skills.
No, your car insurance won’t cover you if you drive another person’s vehicle and become involved in an accident where you’re at fault.
This means if the vehicle you’re driving is only covered by Compulsory Third Party (CTP or Green Slip) cover and you’re at-fault in an accident, you’ll be responsible for paying for the repair or replacement costs associated with the car, as well as the repair or replacement costs to third party vehicles or property.
If the car you’re driving is covered comprehensively, you may be responsible for paying the excess for the claim.
You may or may not be covered for aftermarket parts or vehicle modifications, so it’s vital you check with your insurer to be clear of any limitations or exclusions in your policy. If you have already modified your car in any way, be sure to notify your insurer today, so you can learn whether or not your current policy is suitable for your needs.
Why?
It’s possible that if you haven’t declared any aftermarket parts to your insurer, you may not be covered if you make a claim.
For instance, if you added a custom bumper to your car, didn’t notify your insurer, and you were involved in an accident, it’s possible your insurer could deny your claim to fix any damage to the bumper.
Depending on the circumstances and the policy’s Product Disclosure Statement (PDS), comprehensive car insurance can cover vandalism.
No, your car insurance does not cover your rental vehicle. Car hire companies will typically offer insurance when you hire one of their cars, and you will be required to pay an excess if the vehicle is damaged or stolen.
Some comprehensive travel insurance policies include hire car excess cover as a feature, which means you will not need to pay an excess - and face significant out-of-pocket expenses - should your rental car be damaged, stolen, etc.
Both Third Party Fire & Theft and comprehensive car insurance covers you when your vehicle is stolen (or catches fire). Furthermore, if you’re at-fault in an accident and damage a third party’s vehicle or property, both types of insurance cover the repair and replacement costs of that person’s car or property. Comprehensive cover provides an extra level of protection by also covering any damage to your vehicle as well.
Depending on your level of cover, if your car is stolen and isn’t recovered, your insurer will usually replace your car or pay you the amount it’s insured for (minus any excess you owe). Don’t forget that your Third Party Property Fire & Theft policy may not cover any damage to your car if the thief is unsuccessful in stealing it. Comprehensive car insurance, on the other hand, covers any damage a thief makes in their attempts to take your car – whether they’re successful or not.
Be aware that there could be a waiting clause before any action is taken by your insurer, which gives the police time to recover your car (many vehicles are only stolen for short-term use). If your car is recovered with damage from theft, your insurer may either pay for its repairs or write it off.
As always, it’s vital you carefully read your policy’s Product Disclosure Statement (PDS) to see if there are any restrictions on cover for stolen cars. If in doubt, contact your insurer.
Certain types of car insurance will cover fire damage. Third Party Property, Fire & Theft and comprehensive cover provide compensation in cases where your car is damaged or destroyed by a fire or is stolen.
It’s important to note that Third Party Property, Fire & Theft doesn’t cover your car’s repair costs if it’s involved in a traffic accident; this is where comprehensive car insurance comes in. This is a top level of car insurance that covers not only fire damage to your car, but the repairs and replacement costs of your vehicle as well. Comprehensive cover also covers the cost of damage to a third party’s vehicle and property if you’re at-fault in an accident.
As always, check your policy’s Product Disclosure Statement (PDS) for any cover exclusions that may impact the success of your claim.
Depending on the circumstances and your policy, comprehensive car insurance will typically cover water damage. However, it’s important you check your policy’s Product Disclosure Statement (PDS) to be sure if your car is covered for flooding.
If your car sustains flood damage, contact your insurer right away to make a claim; don’t begin repairs, as this could impact your claim.
Passengers who are injured in an accident may be covered by the at-fault driver’s Compulsory Third Party (CTP) cover (also known as Green Slip cover in New South Wales). Depending on the state and the incident, the passenger may only receive cover if their medical costs exceed a certain amount, or their recovery exceeds a certain timeframe.
Your car insurance premiums may increase after a claim, depending on your insurer and your situation. If you’re the at-fault party, it is likely your premiums will increase. Therefore, if you were to make more than one claim in, say, a 12-month period, your insurer will see you as a greater risk to insure, which may reflect in higher premiums.
Even if you’re not at fault, it is possible your premiums could increase. As such, it’s important you compare car insurance policies to find a level of cover that suits your driving history, budget, and needs.
After you become involved in an accident, contact your insurer right away with your policy number and details of your accident. You may choose to do this over the phone, or, depending on your insurer, you can go online to begin your claims process.
Be sure to provide as much information to your insurer as possible, including:
Depending on your insurer, you may be able to track the progress of your claim online. If they require more information, they’ll contact you.
Once your claim is finalised, your insurer will take the appropriate action that suits your policy.
Be sure to note the date and time of the accident, as well as any information that could support your car insurance claim (e.g. photos, eyewitness accounts, and any police reports). Also, make sure you record the other party’s:
The more information you can collect, the better chance your insurance claim will go through. Once you’ve gathered this information, contact your insurer right away.
For more information, find out what to do after a car accident.
It may only take a short period of time to initiate the claim with your insurer over the phone or online. However, the length of time it takes for your claim to be finalised depends on its circumstances.
Your insurer will contact the other driver or their insurance company to gather more information to substantiate your claim. They will consider evidence from both parties, as well as any police reports to help determine who was at-fault. On top of this, your insurer may request a vehicle inspection to ascertain the level of damage sustained from the crash.
If either party were injured during the accident, your insurer might also need to undertake medical examinations as well.
As such, it’s impossible to pinpoint an exact timeframe for a claims process, as each process is unique. It may only take a few short days, or perhaps years (as a worst case scenario) – depending on the complexity of the situation (e.g. a fairly straightforward ‘fender bender’ claim may take days or weeks, but rarely any longer).
If you’re concerned about your claim and how it’s being handled, be sure talk to your insurer; they’re there to help. In the event you feel your insurer isn’t handling your claim as they should, you may be able to escalate it to the Financial Ombudsman Service (FOS).
If you’re involved in an accident, and a vehicle (either your own or someone else’s) sustains damage covered by your policy, you can make a car insurance claim immediately. Depending on your insurer, this can be done online or over the phone. Even if the accident wasn’t your fault, it’s important you still ring your insurer so they can deal with the other person’s insurance provider.
When making a claim, you’re electing for your insurer to cover damages and losses. Your insurer will review your claim with the information and evidence you provide to support your claim. If your insurer accepts your claim, they will organise the repair or replacement of affected vehicles or property; this is known as the benefit or payout.
To ensure you’re covered, it’s vital you’re honest with your insurer about your claims history or any modifications or damage your car may have. If you aren’t transparent with your insurer, there’s a chance your policy could become invalid or your claim could be rejected.
When you’re at-fault in an accident, you may be required to pay an excess. This is an amount you agree upon when you first take out your policy.
Depending on your insurer, you can file an insurance claim online or over the phone. When you go to make a claim, be sure to include the following information:
Some insurers have helpful apps that can guide you on the information and evidence you need to move along the claims process. If your insurer accepts your claim, they will deal with any third party involved on your behalf.
Do not delay making a claim – your insurer may not cover any extra loss caused by not claiming right away.
If you’re involved in an accident, and you have insurance, it’s important you contact your insurer with as much detail as possible, as soon as possible. Some insurers even have mobile apps that can assist with gathering information for a claim.
Your insurer will require certain details of the accident when you lodge your claim, including:
Don’t forget to take photos of your vehicle and the other vehicle, to present as evidence of damage to your provider at the time of your claim.
If the police attended the scene and documented your accident, your insurer will also use this to substantiate your claim. Your insurer may also require a vehicle inspection to determine the damage. Throughout the claims process, your insurer will take care of communication between the other driver and their insurer if needed.
Depending on the nature of your claim, the extent of the damage, and the communication between the other driver and their insurer, it’s difficult to say how quickly your claim will be fully processed. If all parties cooperate and communicate effectively, it could be a matter of days. If there’s any uncertainty or extra investigation required, it could take up to a year.
After you claim on your policy, you may notice an increase in your premiums. If this does happen, compare car insurance to ensure you’re paying for a great-value policy.
For more information, read up on what to do after a car accident for tips on how you can effectively manage an incident and gather any required information.
Comprehensive car insurance can provide cover for a range of scenarios, and is regarded as the most extensive level of protection. It covers damages to both your car and others if you’re involved in an accident, regardless of who’s at fault. It also will typically provide the same protection as Third Party Property and Third Party Property, Fire & Damage (i.e. your car can be covered if it’s stolen or damaged in a fire).
While comprehensive insurance provides a wide level of protection, it doesn’t cover your liability if you’re at fault in an accident where another person is injured or killed. Only Compulsory Third Party (CTP or Green Slip) insurance covers these scenarios, and is a mandatory level of protection every registered vehicle in Australia must have.
To learn more about comprehensive car insurance, read more about the different types of car insurance available in Australia.
Comprehensive car insurance covers your vehicle’s repair and replacement costs if it’s damaged from accidental damage, fire, or specified weather events, or if it’s stolen.
If you’re at-fault in an accident and damage another person’s car or property, this type of insurance can also cover these repair and replacement costs.
We think it’s worth taking out comprehensive car insurance, provided you can afford it. After all, you’ve spent thousands of dollars on your car – why not protect that investment?
The decision as to whether you need a comprehensive policy will ultimately depend on your individual needs and budget. Comprehensive car insurance provides a top level of protection for your car. Not only does it cover you for damage to your vehicle as well as damage to another person’s car and property, but it also covers the cost to replace your vehicle if it’s ever stolen or damaged or destroyed in a fire.
Let’s say you accidentally run up the back of a sports car. How could your budget take the blow, which could amount to well over thousands of dollars in repairs? And if your car is stolen and you don’t hold the appropriate level of cover, could you afford a replacement vehicle?
To learn more about comprehensive car insurance and how it could protect you in a range of scenarios, take a look at comprehensive car insurance.
Yes, every car on Australian roads must have Compulsory Third Party (CTP) insurance on their vehicle, otherwise known as Green Slip cover in New South Wales. In most states and territories, the cost of this cover is built into your annual registration fees. Those living in New South Wales, however, must take Green Slip cover out separately from their registration before they can legally drive on the roads.
You will have CTP insurance as your base insurance and then you can build upon it with an additional level of insurance, like comprehensive cover, for example. Comprehensive car insurance won’t cover you for injury or death of a third party in an accident where you’re at-fault; it’s designed to cover the repair or replacement costs of your car and a third party’s vehicle and property.
Car insurance policies are typically 12-month agreements. However, if you only require car insurance for six months, you can always cancel your policy early. Be aware that you may attract a cancellation fee, so it’s best to be upfront with any insurer of your requirements before taking out a policy.
This depends on your insurer, but you can typically pay for your car insurance with a credit card. Be sure to contact your insurer to find out if this is a suitable payment method before taking out your policy or paying your premiums.
When a car is written off, it's entered into your state or territory’s written-off vehicle register. Once this happens, it’s typically difficult to get your car back on the road again.
In fact, you won’t be able to re-register and re-insure a vehicle listed as a statutory write-off. This means the car is far too damaged to be repaired to road safety standards. As the car’s vehicle identification number (VIN) is recorded as a statutory write-off, you won’t be able to register it again.
If your vehicle is classified as a repairable write-off, you may be able to apply to your state or territory authority to re-register the vehicle if it’s repaired and passes both an authorised safety inspection and an inspection for written-off vehicles. You may then be able to re-insure it.
Yes, some insurers will still offer car insurance if you have a suspended license – this, however, doesn’t mean you’ll be covered if you drive with a suspended licence. If you’re not allowed to drive and yet you take to the road, you’ll be in breach of your policy’s Product Disclosure Statement (PDS) and will not be covered if you need to make a claim.
Even if you do have a suspended licence, cover is still crucial in protecting your vehicle from theft or damage, particularly if another person will regularly drive your car (in which case you’ll need to list this person on your policy to avoid potential additional ‘unlisted driver’ excess). Furthermore, insurance is vital in covering damage to another person’s vehicles and property.
To ensure you’re taking out the level of cover that suits your budget and how your car will be used, read about the different types of car insurance, or compare a range of policies with our free comparison tool.
There are a variety of factors that can affect the cost of your car insurance premiums. Along with the make, model, and condition of your vehicle (as well as your claims history), your insurer also considers your car's age when you take out a policy. If your car is older and its parts are more difficult to source, it is likely your vehicle will be more expensive to insure.
Your car insurance is typically effective from the day you take out your policy. However, your cover may be delayed if your insurer requires a vehicle inspection before you can take out your policy.
Additionally, in some circumstances and some locations, insurers may place a restriction (otherwise known as an embargo) on new policies if they deem it necessary. For instance, you may not have cover for storm or flood damage during a certain period of time if these events are forecasted or are happening in the area your car is in. These exceptional circumstances, however, are outlined on your Certificate of Insurance and/or Product Disclosure Statement (PDS).
As each insurer is different, it is important to read your PDS to be sure of when your coverage commences.
Insurance is typically taken out by the owner of a car, so they have cover if they’re involved in an accident. Despite this, while it’s not common practice, you can insure a car you don’t own if you have insurable interest in the vehicle – that is, if the car were damaged or stolen, you would suffer a financial loss.
It is not common practice for insurers to factor in your credit score when you take out car insurance.
We make comparing car insurance easy with our online comparison tool. By adding your car’s registration number into the journey, we can pre-fill question fields; like your car’s model, age, and your address. If you don’t know your car’s registration number, you can still continue through our journey; you’ll just fill in these fields manually.
You’re also required to select the level of cover you’re looking to take out (comprehensive, Third Party Property, or Fire & Theft). After you complete the question fields, you’re presented with a range of car insurance policies, where you can decide on which has the features and benefits that suit your budget and needs.
Keep an eye out for certain questions, like any motor insurance claims you may have made in the last few years. If you fail to disclose claims or mislead your insurer in any way, your cover could be cancelled, or future claims may be denied.
Yes, you can purchase a car without insuring it with Third Party Property, Third Party Fire, Theft & Damage, or comprehensive cover, however, your car will likely be covered by Compulsory Third Party (CTP) insurance as soon as you get it registered - depending on which state or territory you register it in. CTP insurance provides a minimum level of protection to cover your legal liability if a third party is injured or killed in an accident.
As CTP insurance doesn’t cover the damage costs to your car or property as well as other drivers’ cars and property, it’s important you consider an additional level of cover. Try our online comparison tool to find out which type of car insurance suits your needs and budget.
When taking out a car insurance policy, an insurer has their own set of questions they’ll ask to determine their risk in insuring you. They'll typically require the following information (depending on your insurer, they may request additional information):
On top of this, an insurer may need to complete a vehicle inspection before allowing you to take out a policy on the car.
It’s vital you are transparent when applying for a policy. If you aren’t and you need to make a claim in the future, you could be knocked back by your insurer. If you make a claim, your insurer may also require more information, like the details of the accident and evidence to support your claim (e.g. photographs or police reports).
As always, make sure you read and understand your policy’s Product Disclosure Statement (PDS), including the information your insurer requires, before you take out a policy.
If you decide to pay for your car insurance premiums annually, you will be required to pay for the full year upfront. This payment method may be cheaper for you in the long run, as you may dodge administration fees that are often added to monthly payments that are direct debited.
For monthly payments, you will pay the first instalment within a couple of days of commencement, if not immediately.
Contact your insurer to find out their payment requirements.
Yes, you may be able to insure a hail-damaged car under Third Party Property insurance, as this type of policy only covers other cars and property you damage; however, you won’t receive any cover for damages to your car.
Insurance companies may be reluctant to provide comprehensive cover for a hail-damaged car or may offer cover at an increased rate compared to other cars that haven’t sustained hail damage.
Why is it difficult to comprehensively insure a hail-damaged car? Let’s say another car collides into your hail-damaged car door, and you require a replacement door for $5,000. It’s possible other drivers’ insurers may argue that the car door wasn’t worth $5,000 before the accident, due to the existing damage. As such, they may not pay that amount for a new door.
If your car already has hail damage, you are required to inform your insurer before taking out cover; otherwise, your cover may be void or future claims may be knocked back.
Yes, car insurance includes GST (Goods and Services Tax). You can see this amount outlined on your certificate of insurance.
You can generally take out car insurance without a driver’s licence; however, you won’t be covered if you drive the car.
If you don’t have a licence, you may still want to take out cover to protect your car against vandalism, fire, or theft. You may also want to insure your vehicle if another driver regularly uses your car. In this case, you should list this driver on your policy; otherwise, you may have to pay an unlisted driver excess in the event of a claim.
When taking out insurance for a company car, it’s important you flag it as ‘private and business use’ or ‘business use’ on the policy. Using your car for business reasons typically means you’ll be travelling on the road more often compared to a car that’s used for private use and commuting to work. As such, your premiums may be slightly more expensive given your greater claims risk.
When comparing car insurance with our comparison tool, we’ll also ask you other questions insurers need to know, like if your car will be used for:
If you answer ‘yes’ to any of these questions, you may need to seek out cover that is specifically designed for business use, as standard consumer insurance may not provide protection for these activities.
A No Claims Discount (NCD, otherwise known as a No Claims Bonus) is a discount offered by some insurers to reward good driving behaviour. The rating system typically ranges from one to six, with one being the highest discount rating you can reach. The lower your number on the scale, the higher your discount will be. The scale reduces by one each consecutive year you hold cover and don’t make a claim.
Some insurers will offer an NCD protection, so if you do need to make a claim, you can protect your rating.
Car insurance excess is the amount you pay your insurer when you claim on your policy. This excess is agreed upon between you and your insurer when you take out the policy.
There are different types of excess, including:
You may not be required to pay an excess if your car is involved in a not-at-fault accident.* The exception to this rule is when the at-fault party is not identified. This means if you’re involved in a hit and run, for instance, and the guilty party is not found or identified, you may 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 further information, learn more about car insurance excesses.
New car replacement insurance - or new-for-old car replacement - means that your insurer will provide you with a similar make and model (including on-road costs) to your insured car in the event it’s written off or stolen, rather than simply paying you out.
This feature is usually included in top-level comprehensive policies and is subject to the insurer’s exclusions and limitations; including how old your car is and how many kilometres it has driven. First registered owners usually receive this benefit.
When discussing car insurance, 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 the 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.
Guaranteed Asset Protection or GAP insurance is designed to cover the shortfall between what you owe your financier on a car lease and what your insurer pays out if your vehicle is written off.
So, what creates this shortfall? Typically, in the first few years of your car’s lease, your vehicle depreciates faster than what you can pay back to your financier. As such, the amount your car insurer pays out to cover the value insured may not fully meet the amount you are still required to pay off your loan, thereby resulting in out-of-pocket expenses.
For instance, let’s say you owe $20,000 in finance on your car, and it is worth and insured for $15,000 at the time it is written off; GAP insurance can cover the outstanding $5,000 you still owe your financier.
No, car insurance has no bearing on your credit score, so paying it monthly will not build credit.
The amount of drivers you can have listed on your car insurance policy depends on your insurance provider. As such, it’s best to contact them directly to find out if they have a limit.
However, it's important to note that drivers who use your car regularly should be listed on your insurance policy. If an unlisted driver is involved in an accident, you could be hit with an unlisted driver excess on top of the excess you agreed to pay at the time of taking out your policy. Worse still, your insurer could refuse your claim.
Additional drivers on your policy may attract a higher premium, especially if they’re under the age of 25 or are inexperienced. This can also impact the excess you’re required to pay if they're found at-fault in an accident.
Read more about car insurance excess to find out about the different types of excesses payable.
If you believe your insurer has not fulfilled their obligation to you, as outlined in your policy’s Certificate of Insurance and/or Product Disclosure Statement (PDS), you can file a dispute.
In the first instance, it’s vital you contact your insurer to settle the issue. If you cannot come to an agreement with your insurer, you can contact the Financial Ombudsman Service (FOS), an impartial non-profit organisation that offers dispute resolution services to customers who are having troubles with their insurer.
Most reputable insurance companies are members of the FOS, and therefore services offered by the FOS are free to customers. You must keep written records about your dispute for the FOS to settle issues between you and the insurer.
The FOS will communicate between you and your insurer to determine what sort of compensation is fair, given the circumstances. In doing so, they will work out whether or not the insurer has worked efficiently and fairly to resolve your claim, and if your insurer’s benefit (if any) is suited to your claim.
Please note that the FOS cannot assist with Compulsory Third Party (CTP or Green Slip) disputes. You must contact your state authority instead.
If you believe your claim was unfairly denied, please read about the steps to dispute a car insurance claim.
Compulsory Third Party (CTP or Green Slip) insurance covers personal injury claims if you’re at-fault in an accident where another person is injured or killed. If your car is registered, you automatically pay for your CTP insurance as well (except in New South Wales, where residents must take out Green Slip cover before driving on the roads).
If you let your car insurance policy lapse, you will not be covered in the event of a claim. However, if your car is still registered, it will be covered at a basic level with Compulsory Third Party (CTP) insurance (or Green Slip cover in New South Wales), which covers your legal liability if you’re responsible for injury or death in an accident.
When taking out car insurance again, there may be a period of time before coverage commences where you’re not covered, especially if your insurer needs to inspect your vehicle. To ensure you’re choosing a policy that meets your needs and budget, use our helpful comparison tool; you can view policies side-by-side and compare their features, benefits, and limitations, as well as any discounts that may apply to you.
Car insurers can refuse to pay a claim if you did not meet your policy conditions as outlined in your Product Disclosure Statement (PDS). Insurers can also refuse payment if you were misleading when you first took out a policy (e.g. you failed to disclose that your car is parked on the street at night, rather than a garage), or if you were driving under the influence of drugs or alcohol.
Your claim may also be refused if:
For the full range of reasons why you may be refused payment, it’s vital you talk to your insurer and carefully read your Product Disclosure Statement (PDS).
If your registration expires, so will your Compulsory Third Party (CTP or Green Slip) insurance – the level of cover that is mandatory for all cars on Australian roads. As such, you will not be able to drive on the road until you re-register your vehicle with CTP insurance.
For other types of car insurance, like Third Party Property, Third Party Property, Fire & Theft, and comprehensive car insurance, you will not be covered. While you may still legally drive your car with CTP insurance, you will be vulnerable to major out-of-pocket costs if you were to damage your car or another person’s vehicle (or property) in an accident.
As such, compare car insurance before your policy expires to ensure you don’t experience any lapses in coverage. Comparing policies also helps you easily find great-value cover that suits your current needs.
Yes, you must take out Compulsory Third Party (CTP, also known as Green Slip) insurance when you register your car. CTP insurance is a mandatory level of cover for all registered vehicles. It covers your legal liability if you’re at fault in an accident and another person is injured or killed.
While you don’t have to take out any other type of car insurance, it’s likely to be in your best interest to do so. Why? Extra levels of car insurance offer increased protection. For instance, if you were involved in a car accident where you were at fault, comprehensive car insurance would not only cover the repair costs of the third party’s vehicle and property, but it would also cover your own vehicle’s damage as well.
Learn more about other types of car insurance and why they’re worth considering on top of your CTP insurance.
There are four main types of car insurance cover available in Australia – three of which you can choose to take out as added protection for your car.
All cars driven on Australian roads must have Compulsory Third Party (CTP) (otherwise known as Green Slip cover in New South Wales) on their vehicle before taking to the roads. It’s automatically included in your registration costs (except for NSW, where drivers must take out this cover separately) and protects you if you’re ever responsible for third party injury or death.
Third Party Property covers you for third party car and property damages, repairs, and replacement costs. It doesn’t cover your car if it’s stolen.
Third Party Fire & Theft not only provides the same level of cover as Third Party Property, but it also provides an extra level of cover for repair and replacement costs if your car is stolen or is damaged in a fire.
Comprehensive cover is the most extensive form of car insurance you can take out. It covers the repair or replacement costs if your car is damaged by fire, theft, accidental damage, or certain weather events. It also covers damage to another person’s vehicle or property if you’re at fault.
Read more about different types of car insurance to find out which one may suit your needs.
Yes, Compulsory Third Party (CTP or, in New South Wales, Green Slip cover) is mandatory in all Australian states and territories. Before any vehicle can take to the roads, you must have this minimum level of cover in place, as it covers your legal liability if another person is injured or killed in an accident.
In every state and territory aside from New South Wales, this cover automatically comes with your registration. In New South Wales, you must take out Green Slip cover before taking to the road.
To learn how car insurance operates in each state, check out Car insurance in Australia.
Yes, you are required to arrange registration and Compulsory Third Party (CTP) insurance when you purchase a car. In most Australian states and territories, your registration automatically includes CTP insurance.
CTP (known as Green Slip cover in New South Wales) provides a minimum level of protection for your legal liability in case a person is injured or killed in a car accident where you’re at fault.
While you’re not legally obligated to take out additional levels of insurance on top of your CTP, it’s a smart idea to consider extra cover as soon as you make your purchase. Why? These extra levels of cover can dramatically reduce your out-of-pocket damage and repairs expenses.
You can take out Third Party Property, which can cover the cost of damage inflicted on another person’s car or property. Third Party Property, Fire & Theft provides an extra level of protection if your car is stolen or damaged in a fire.
Comprehensive car insurance offers a top level of protection against a range of scenarios; including damage caused to your vehicle and property, as well as another person’s vehicle and property.
If you need insurance for your new car, compare car cover today and find a policy to suit your needs and budget.
Excess is the amount you agree to pay if you’re at fault in an accident. Your excess is payable when you claim on your policy, and your insurer will ask for it before authorising any repair work on your car. Your insurer may deduct this excess from your payout amount, or you may have to pay it out to the smash repairer.
Let’s say you’re the at-fault driver in an accident and accrue $10,000 in damage. If you agreed to pay a $600 excess when making a claim, your insurer will typically foot up to $9,400 to cover the repair costs.
As always, check your certificate of insurance to be sure of the amount and types of excesses you’ve agreed to pay in the event of a claim. Also, ensure you read your Product Disclosure Statement (PDS) to find out when you may need to pay the excess or if you have any additional excesses that you may need to pay.
If a vehicle is more than 30 years old or has ‘historical value’, it can be considered a classic car and may be eligible for classic car insurance. Depending on your car’s make and features, it may be categorised as a veteran, vintage, prestige, or (for certain US imported vehicles) an American classic car.
Whether or not your car qualifies for classic car insurance depends on your insurer. To find out if your car is suitable for this level of insurance, compare classic car insurance today.
If you or your insurer cancels your cover, your vehicle is no longer protected by that policy.
Your insurer may cancel cover if you haven’t paid your premiums, or if you’re claiming too often. Before you consider seeking out new cover, make sure you call up your old insurer and find out why the policy was cancelled in the first place.
Be sure to compare car insurance to find an alternative cover that suits your needs and budget before you take to the roads. If you drive without a suitable level of cover, you could risk out-of-pocket expenses if you damage your car or damage another person’s car or property. It’s also best if you don’t delay in taking out a suitable level of cover, as your car could be stolen or vandalised when not in use.
Guaranteed Asset Protection (GAP) insurance protects your car against loss if it’s under finance and written off in the first couple of years of your ownership.
GAP insurance is particularly useful in the first few years of your lease, where your car’s insured value typically depreciates faster than what you can pay back your financier (which will include interest). This means your car will be worth less than what you owe on your lease.
If your car is written off while under finance, you may still need to pay out the remainder of your finance contract. The amount your insurer compensates you for (i.e. your car’s insured value) may not be enough to cover the amount you still owe on your lease – this is otherwise known as a shortfall.
How could this affect you? Well, let’s say you owe $25,000 in finance on your car, but it’s worth (and is insured for) $20,000 at the time it’s written off; GAP insurance can cover $5,000 in difference between what you still owe your financier, and what you received as compensation from your insurer.
Each Australian state and territory has its own laws that outline when a vehicle should be written off.
In general, insurance companies total a car if they determine the cost to repair the damage will outweigh your vehicle’s current worth or what it’s insured for. This is known as a repairable write-off.
If your vehicle is considered unsafe to repair, your insurer will list it as a statutory write-off or a non-repairable write-off. These types of vehicles can never be repaired, re-registered, or re-insured.
The cost of motorbike insurance compared to car insurance depends on a range of variables. While some motorbike insurance policies can be expensive, as some insurers believe motorbikes pose a higher risk on the road, every driver and their vehicle is unique.
For instance, the cost of both motorbike and car insurance is based on factors like their age, make, model, and any modifications. Premiums are also calculated against the driver’s experience, claims history, and the location the vehicle is parked (among other factors). As such, some motorcycles may attract higher policy premiums than some car models and vice versa.
Yes, depending on the make and model of your vehicle, you may pay more to insure such a vehicle. This is because turbo cars are high-performance vehicles, and are often associated with risky driving behaviour.
Compare car insurance policies regularly to ensure your cover is competitive and adequately suited to your needs and budget. If your policy is outdated and doesn’t offer the right level of protection, you could be wasting your hard-earned money on premiums.
Keep an eye out for rewards offered for good driving behaviour, as well as discounts offered to those who enforce age restrictions on their policy (if doing so would suit your circumstances).
Younger drivers may be subject to more expensive premiums due to less experience on the road, compared to drivers who have held their licence for an extended period of time. On top of this, other factors, like the make and model of their car, significantly impact the cost of their premiums. Insurers may also apply a higher age-related excess.
Combine this with lower than average weekly earnings for Aussie graduates (compared to previous years and other age groups), and it’s little wonder why young drivers are searching for more affordable car insurance.
In order to find such cover, it’s vital to shop around for different options. This way, you’ll get a better idea of which insurers offer competitive premiums, but you’ll also track down policies that suit your needs.
To get started, compare car insurance with us today. For tips on cheaper premiums, take a look at how young drivers can find affordable car insurance.
The number of car doors on your vehicle doesn’t necessarily have a direct impact on your insurance premiums. There, however, are a number of other factors that do affect the cost of your car insurance premiums. Some of these factors include your car’s make, model, and your claims history. Depending on these factors, a three-door car, for instance, may be cheaper to insure than a five-door – or vice versa.
To find out how much your particular car may cost to insure, compare policies with our online comparison tool. In doing so, you can see the difference in benefits, features, and exclusions of each policy, as well as the variance in premiums.
Not necessarily. Your car insurance premiums are not only based on whether or not your vehicle is a hybrid; rather, your premiums are based on a range of other factors, like your car’s age, make, model, and your claims history (to name a few).
As such, it’s essential you compare policies to see what rates you may be charged on premiums for your particular type of car, your driving experience, and your claims history.
Car insurance premiums vary between drivers, their car models, how their car is used (i.e. private or business use), and the type of policy they take out (among other factors). As such, it’s vital you compare car insurance to find out how much these premiums could cost you.
To compare car insurance policies, enter your details onto the website and we’ll use that information to help you find policies that suit your needs and budget. Each of these questions can impact your premiums in some way, including:
Always disclose as much information to your insurer as possible; if you decide to hide your claims history, for instance, your cover could be cancelled, or future claims could be denied.
Find out more about how your car insurance premiums are calculated.
If you can’t afford your current cover, it’s important you firstly shop around and compare car insurance policies to find the value that suits your needs and budget. Our online comparison tool allows you to compare policies side-by-side in just minutes.
You may find a different level of cover may suit your needs as well. While comprehensive car insurance offers the highest level of protection for your car, you may like to downgrade your cover to Third Party Fire & Theft or Third Party Property. You will, however, need to weigh up the risk of spending less on your premiums each month or paying great out-of-pocket costs on the repair or replacement costs of your vehicle.
You can also look at ways to reduce your car insurance premiums.
You must contact your insurer to add another driver to your policy. Adding another driver may result in a change in your premiums. The insurer will need to know the additional driver’s name, age, and gender, as well as their driving and claims history.
To help keep your premiums cheap, it may be a good idea to choose a ‘driver age restriction’ that suits your needs. For example, if you won’t have any drivers under 30 using your car, you could select this option with your insurer. Just be aware that if a driver under this stipulated age limit is driving your vehicle and is involved in an incident, your claim could be rejected by your insurer.
Be sure you and other drivers read your policy’s Product Disclosure Statement (PDS) to understand what is and isn’t covered in your policy.
If you have any renewal notices or a Certificate of Insurance, you'll be able to find out which provider is insuring your car. However, if you didn’t keep a record of these documents, there’s no quick way to find out – short of calling various insurance companies to check.
Registered vehicles are legally required to have Compulsory Third Party (CTP) insurance, otherwise known as Green Slip insurance in New South Wales; it’s the minimum level of cover built into your registration fees.
If your car is insured with an extra level of cover, like Third Party Property, Third Party Fire & Theft, or comprehensive cover, your insurer will send you a renewal notice in writing annually. It’s important you keep on top of this so that you understand your level of cover, as well as the amount you’ll pay in premiums.
The fastest, best way to check your car insurance status is to contact your insurer and inquire directly. They’ll be able to tell you how long is remaining on your policy, your no claims discount (NCD) rating and more.
Insurers send out a renewal notice annually as a reminder to continue your cover. When your policy is up for renewal, and you have an idea what your policy will cost for the next year, you should review your options by comparing car insurance to see if there’s a better deal available.
Yes, you can receive a pro rata refund when you cancel your car insurance – that is, a partial refund for the amount of premium you haven’t used. You may, however, incur cancellation fees, so be sure to check with your insurer to learn of any out-of-pocket expenses.
You may receive a full refund from your insurer if you cancel your policy within the cooling off period (which can generally range up to 21 days from taking out a new policy).
If you are looking to change providers, take a look at how to switch car insurance.
You can cancel your car insurance at any time by contacting your insurer directly. Most insurers will accept your intention to cancel over the phone or online.
Furthermore, you’ll be required to state the date you want your cover to cease. Be aware, though, that you may face cancellation fees if you cancel your policy after its cooling-off period. To find out the cost of these fees, check your certificate of insurance and talk to your insurer.
If you’ve paid your premiums in advance, you may also receive a refund for unused portion of your cover. Be sure to contact your insurer to better understand how they deal with cancellations and refunds.
Keep in mind that you don’t always need to cancel your cover if you have a change in your circumstances (i.e. you move houses, or you purchase a new car). Depending on your situation and your level of cover, your insurer may simply alter your policy.
If you’re cancelling your car insurance to find a new deal, compare a range of policies from some of Australia’s major providers with our online comparison tool.
You can usually dispose of your annual statement once your insurer sends out your new renewals notice. It’s a good idea to hold onto a copy of this statement until the next one is sent out for your financial accountants or for tax purposes.
No, you cannot pause your car insurance. You can cancel your cover, but you may be subject to cancellation fees if you do so outside your policy’s cooling-off period.
If you’re cancelling your cover as you feel your current policy isn’t offering value for money, try our free comparison tool. In just minutes, you can compare a range of policies from some of Australia’s major providers to find cover that could fit your needs and budget.
Yes, your insurer may transfer your car insurance to a different vehicle if that type of policy suits your new car. When transferring car insurance, you’re required to provide your updated details and any changes in your circumstances (i.e. new address or extra drivers). Be aware, however, that your amended policy may affect your premium.
Contact your insurer to find out if transferring car insurance to another vehicle suits your needs.
If you’d like to transfer your cover to another vehicle, or if the insured vehicle is going to be used differently (i.e. business use), you may need to cancel your current cover, compare policies, and take out a new policy to suit your needs. In this instance, your insurer may provide you with a refund for the remaining amount of your policy after your cancellation date.
Your insurer may also be able to amend your policy to reflect the details of your new car and any changes in your circumstances (e.g. insuring additional drivers). Be aware that your premiums may be impacted and, depending on your insurer, you may face an administration fee.
Absolutely. If you’re moving homes, you should contact your insurer to update your policy, as there are a range of factors that could impact your cover, including your ability to claim.
Some factors that will affect your policy can include:
As your car insurance premiums are based on the suburb where your vehicle is parked, you may notice a change in how much you pay for your cover. This is why it’s crucial you compare car insurance with your updated details through our online comparison service. With our side-by-side comparisons, you can see what you could be covered for, as well as features, limitations, and cost.
Yes, you can switch providers mid-policy. Be aware that your old insurer may impose cancellation fees.
It’s crucial you don’t take out the first policy you find, as you may not be paying for the most suitable level of cover for your needs and budget. Instead, compare a range of car insurance policies to ensure you’re getting great value and cover.
On top of this, be sure you disclose all necessary information to your insurer, like your claims history, where you park your car, any other regular drivers, and any aftermarket car modifications. If you fail to do so, future claims could be knocked back, or your insurer may cancel your cover.
Before taking to the road, be aware if there is any delay before your insurer covers you. For instance, your insurer may like to complete a vehicle inspection before they allow you to take out a policy. If you head out on the roads without cover, you could be faced with major out-of-pocket expenses.
To help you make an informed decision, take a look at our handy guide: how to switch car insurance.
Yes, you can cancel your car insurance at any time, no matter if you're paying fortnightly, monthly, or annually. You may, however, be hit with cancellation fees if you cancel your policy after its cooling-off period.
Yes, you can switch your car insurance mid-policy before it expires. You'll typically receive a pro rata refund for the portion of your insurance that you haven’t used. Be aware, however, that you may be hit with cancellation fees.
Be sure you’re switching to a policy that’s excellent value and suits your needs by comparing car insurance. Learn more about the different types of car insurance you can take out.
Actually, you won’t know if you’re on the best deal – unless you shop around.
It’s important you take charge of your car insurance, rather than allow your cover to roll over each year, as prices and coverage change every year. To ensure your policy is still great value for your needs and budget, it’s important that you shop around and compare your current level of cover against other providers.
It doesn’t have to be a painful exercise, either. Our comparison tool allows you to easily compare a range of car insurance quotes, side-by-side, in minutes. Be sure you’re getting the most from your car cover and not wasting your savings by comparing car insurance now.
Simply enter your details into our online comparison tool, and you can compare and choose from a range of car insurance policies in just minutes.
When comparing policies, you can weigh up the difference in premiums, discounts, features, benefits, and exclusions to help ensure you’re choosing the cover that suits your needs and budget.
After you choose your cover, you’ll be redirected to the insurer’s website, which has your prefilled information ready to go. They will ask for further details if needed.
Depending on the policy, the insurer may require a vehicle inspection before they can grant you cover. This will delay your policy start date. In other cases, you may be covered immediately after applying.
Depending on your insurer and your policy, car insurance can become effective immediately after you apply either online or over the phone. To help ensure a smooth application, have your car details and your driving history handy. Your insurer will let you know if they require further information about your car or the drivers listed on your policy.
In some cases, your insurer won’t provide cover until a vehicle inspection has taken place.
To ensure you’re getting the best deal on your car insurance for your needs and budget, it’s vital you shop around and compare policies. Our online comparison tool allows you to compare policies side by side, so you can clearly see the difference in premiums and cover, as well as any available discounts.
We recommend you review your policy regularly to ensure you’re holding great-value cover, especially if there’s a change in your situation (i.e. you’ve moved houses, you’ve made a claim, or you’ve modified your car).
Furthermore, we encourage you to disclose any new information, like car alterations, accidents, or a change in how you use your car, to your insurer right away, as withholding such information could affect the success of future claims.
It’s important you take charge of your car insurance, rather than allow your cover to roll over each year. To ensure you’re on the best deal for your needs and budget, shop around and compare your current level of cover to other providers.
Our comparison tool allows you to compare a range of car insurance quotes in minutes. In doing so, you’re able to view policy features, benefits, and exclusions that may affect your cover. Be sure you’re getting the most out of your cover by comparing car insurance now.
Third party car insurance is broken up into three separate categories, with each type of insurance providing different levels of cover:
Third party car insurance protects others while you’re behind the wheel of a vehicle. There are three different types of third party car insurance:
Comprehensive car insurance is the top level of cover you can take out for your vehicle, as it insures you for damage to your own car as well as another person’s car and property. It doesn’t, however, cover your liability for another person’s injury or death; only CTP insurance does.
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