Compare Car Insurance Australia: Save up to 15% online

One of the best things about the car insurance market in Australia is that you’ve got plenty of choice. But often having so many options and variable quotes can make it hard to ensure you're being offered a good deal.

First you need to make in-depth comparisons between the insurance providers and the car insurance policies they offer. This should take into account the policy features and levels of cover to make sure your set of wheels are covered for a range of events. Then you also need to make sure the cover you opt for won’t break the bank.

Mozo’s car insurance policy snapshot table featured above provides an easy way to compare car insurance online. At a glance, you’ll be able to compare a range of important features like which discounts are on offer, whether you have the flexibility to choose your repairer, the excess levels, and how long it will take you to get a quote.

If you’re a super savvy researcher, you can dig that little bit deeper by hitting the ‘Details’ button where you’ll find even more information about the events covered and extra services available. 

Once you’ve shortlisted the policies based on your needs, with some providers you can click the ‘Go to Site’ button which will take you to the provider’s website where you can get a customised quote.

Mozo also has a wide range of car insurance guides to unpack the details future. If you’re confused about the difference between market and agreed value we’ve got a guide to help. Or if you want to understand how your premium is calculated we suggest you read our 2020 Car Insurance Report.   

Haven’t got the time right now? We’ve summarised the must-knows for you in the FAQs list below. 

How does car insurance work?

Depending on the level of car insurance you purchase, this type of insurance policy covers you financially if you cause damage to your own and other people’s vehicles and property. It also relates to costs associated with physical injuries.

When you take out a car insurance policy, you’ll pay an agreed-upon premium (generally annually or monthly). This will need to be renewed at the end of each policy period.

The amount you pay corresponds with specified circumstances and items, and will help determine what your insurance company will pay out if you make a car insurance claim. 

To make a claim the accident or event needs to be within the agreed parameters of your policy. When you make a claim, contact your provider and they’ll lead the process from there. Remember: there are some things that are not covered by car insurance. Make sure you know what isn't covered by your policy before beginning a claim.

If your claim is successful, you’ll often be required to pay an excess before the agreed-upon costs are covered. Then, voilà! You’ve taken out a car insurance policy and made a car insurance claim.

What levels of car insurance cover are there?

Car insurance might seem confusing, especially if you’re a first time insurance customer. The first thing to understand are the three tiers of car insurance policies: CTP (also known as compulsory third party), third party property car insurance, and comprehensive car insurance.

Compulsory third party (CTP)

Compulsory third party (CTP) is also known as a greenslip and is required in Australia by law when you register your vehicle. 

It provides the driver legal liability cover for injuries or death for which they’re responsible. How you go about procuring your CTP insurance differs slightly based on the state or territory you live in. 

Third party property car insurance

Third party property car insurance is optional and covers damage to another person’s property but not to your own car. Third party is generally cheaper than a comprehensive policy and may be right for you if your wheels aren’t worth much. 

Fire and theft is a popular additional option to this level of cover for people who park their cars in the street or live in an area with a high crime rate. It protects your car against damage caused by fire or theft, but not in the event of an on-the-road accident.

Comprehensive car insurance

These are the types of policies you’ll find compared in Mozo's product tables and are the highest level of car insurance. Comprehensive car insurance will cover you against accidental damage to other people’s property but also to any damage to your own vehicle, even if the accident is your fault. 

Depending on the individual policy, comprehensive car insurance policies can cover you for damage to personal property within your car or the use of a rental car, as well as a host of other features.

While a comprehensive policy is the most expensive policy option, it can be made more affordable through a range of discounts, sign-on offers, and clever shopping around.

What will affect the cost of my car insurance?  

The cost of a comprehensive car insurance policy can change pretty significantly depending on who is asking for the quote. Every car insurance company uses a different formulae to calculate premiums, so you never can tell exactly what determines the cost. Some commonly influential factors include:

• Your age and gender. For example, younger male drivers are generally considered to be more of a risk to insure than older women.
• The age and colour of the vehicle. Newer, more expensive cars cost more to cover.
• Where you live and whether your car is garaged.
• Projected mileage. Some offer cheaper premiums for Aussies who don’t use their cars so often.

How heavily some of these factors weigh in the insurance company’s calculations differs. With each provider putting a different price tag on your policy, it's super important to shop around and not just go with the first quote you get.

How else can I save on my car insurance?

There are a range of discounts up for grabs so you can reduce your premium. Each provider and car insurance policy is different, but across the market you could see the following discounts being offered.

• Multi-policy discount

Some providers don’t just cover your vehicle needs but also operate in home insurance or life insurance. They can reward you with discounts depending on the amount of policies you take out with them.

• Online discount

Some policies will be slashed (often for the first year) if you take them out online rather than in person at a branch. This is because it's essentially a more efficient, cost-effective way for the provider to sign-on new customers.

• Restricted driver discount

If you can guarantee there won’t be many drivers or restrict the age of the drivers listed on your policy, you could also be up for a discount on your premium.

• Family discount

If your parents have a car insurance policy with the same provider, you may be able to nab a discount on your own policy which is handy if you’re a first time car insurance customer. You might even be able to get a no-claims discount if you have been listed on your parents' insurance policy and not made a claim. 

• Loyalty discount

If you’ve held the same policy for a number of years, some car insurance providers will offer you a discount when it comes to renewal time. If they don’t, you should ask for one!

• Fuel efficient discount

An increasingly popular discount in the car insurance market is to reward customers who choose an eco-friendly vehicle. If your car is fuel efficient or a green electric car, look out for policies that will slash your premium thanks to your environmentally-conscious ways.

What is a policy excess?

The ‘excess’ is the amount of money you’ll have to pay your insurance provider upfront if you make a claim. Most offer you the option to choose your own excess level or give you a certain degree of leeway. 

If you choose a really high excess, your premium will be cheaper but you’ll need to pay a higher amount to access your coverage when you make a claim. There are some basic excesses you might be required to pay including:

• Age excess: This could be imposed if the driver making the claim is under the age of 25 and may be even pricier if the driver is under the age of 21. Young driver excesses can range between approximately $500 and $800, then upwards of $1,000 for unlisted young drivers.
• Unlisted driver excess: If you want to make a claim and the driver who was involved in an accident is not listed on the policy, it is likely you'll be asked to stump up an unlisted driver excess. This amount could be in the $800 ballpark, or closer to $1,400 for younger drivers.
• Inexperienced driver excess: If you’re over the age of 25 but you’ve held a driver’s licence for less than two years, you might still have to pay an additional inexperienced driver excess, often similar to young driver prices.
• Windscreen excess: Some policies will provide windscreen or glass cover but charge a smaller excess than normal for you to access that particular feature. For instance, you might have a $750 excess if you’re involved in an accident but if you chip your windscreen you might only have to pay a $100 excess. Other policies will even offer excess-free windscreen cover.

What are some of the extras to compare and consider with comprehensive cover?

Car insurance policies are a little like snowflakes, no one policy is the same as the next. Some may come with features as standard, while others will require you to opt-in. Generally speaking, the more feature-rich your policy is the more expensive it will be. Some features to consider include:

• Windscreen cover: Windscreen cover is sometimes an additional extra you’re required to ask for when taking out your policy. This will cover any damage to your windscreen or any glass on your vehicle. Remember,  you might have to pay an excess to use this feature of your policy.
• Choice of repairer: Being able to choose your own repairer is available on some high-end comprehensive car insurance policies. This is a great option if you have a trusted mechanic or panel beater in mind and want them to see to all repairs.
• Hire car cover: If your vehicle is facing a stint on the sidelines, how will you get about? This is where hire car cover kicks in. Some providers won’t include it as standard at all, while others might only cover the costs of your rental if your car is stolen and not damaged or vice versa.
• Personal property cover: This kicks in if your car is raided or you’re in an accident and your fancy sunnies are damaged. Each policy will have a different cap, so keep that in mind if you often leave valuables in your car.
• Roadside assistance: Roadside assistance is the helping hand that comes to the rescue when you’re broken down. Most insurance companies won’t offer this as standard, but some do. If you like the added security of knowing your immediate mechanical solutions will be met, keep an eye out for this additional extra.

Making a car insurance claim

We hope that this is just useful background info, but it’s important you know what to do after you’ve been in an accident and how to go about making a claim.

You’re going to need to have a few things on hand so that the claims
process runs as smoothly as possible. First of all, you’ll have to know
the details of the accident including:

• the date and time
• the location of accident or incident
• other driver’s details (including the phone number and licence details)
• any witness statements / other road-users involved.
• any photo evidence
• a police report (if applicable)

The majority of car insurance providers are riding the digital wave and will allow you to lodge and keep track of your claim online. But if you prefer to keep it old-school you can just as easily call your car insurance provider up. Some are available via phone 24/7 so that you can make a claim whenever you want.

When you make a claim on your insurance, you’ll have to pay your insurance excess upfront before any repair work begins on your car. Some other expenses to be aware of after a claim could include an increase in premium the following year, or if it was an at fault accident, a possible hit to your hard-earned no claims bonus.

Other key FAQs about car insurance