One of the best things about the car insurance market in Australia is that you’ve got plenty of choice. But with over 30 car insurance providers to choose from, having so many options can also make it hard to ensure when you get car insurance quotes and policy options you are comparing apples with apples.
First you need to be able to make in-depth comparisons between the insurance providers themselves and the car insurance policies they offer, taking into account the policy features and levels of cover to make sure that your set of wheels are covered for range of events. Then you also need to make sure that the cover you opt for won’t break the bank. It is a complicated process.
Well, at least it used to be. Mozo’s car insurance policy snapshot table featured above provides an easy way to compare car insurance online. At a quick glance, you’ll be able to compare a range of must-have features like which discounts are on offer, whether you have the flexibility to choose your repairer, level of excess as well as 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 ‘More Info’ button where you’ll find even more info about the events covered and extra services available. Once you’ve shortlisted the policies based on your needs, with some insurers you can click the ‘Go To Site’ button which will take you to the provider’s website where you can get a customised quote.
Haven’t got the time right now? That’s ok, that’s why we’ve summarised the must-knows for you in FAQs list below.
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 is that there are three tiers of car insurance policies ranging from CTP also known as Compulsory Third Party to comprehensive car insurance.
Compulsory third party (CTP)
Compulsory third party (CTP) is also known as a Green Slip and is required in all states, by law, when you register your vehicle. It provides the driver cover for any legal liability for injury or death for which they’re responsible and 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, on the other hand, is optional and covers damage to another person’s property but not to your own car if you are involved in an at-fault accident. 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 and will protect your car against damage caused by fire or theft but not in the event of an one-the-road accident.
Comprehensive car insurance
These are the types of policies you’ll find compared in our product tables and provide 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 set of wheels, even if the accident is your fault. More so than that, depending on the individual policy, comprehensive car insurance policies will cover you for damage to personal property within your car or rental car cover as well as a host of other features.
While a comprehensive policy is the most expensive policy option, they can still be made affordable through a range of discounts, sign on offers, and clever shopping around to make sure you’re paying for the things you want and don’t need.
Will my insurance be valid Australia-wide?
When you take our car insurance for your car, motorbike or 4WD, your insurer will base the cost of the state in which the car is registered as well as your permanent address. If you drive interstate for a holiday or short-term period, your car insurance will be valid if you are in an accident. It is a good idea if you are planning on spending a lot of time away from your registered address that you first check with your insurer to find out if they have any limits on the number of days you can be out out the state and still be covered.
Most car insurance companies operate Australia-wide, but if you are looking to compare car insurance policies for providers in your state, Mozo has listed the providers that are available, including:
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 and you might be wondering what exactly the insurer is weighing up when calculating your projected premium. Every car insurer uses a different formulae so you never can tell what it is exactly which determines the cost but some of the known factors include:
- your age and gender. 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 cost more to cover.
- where you live and whether your car is garaged.
- projected mileage. Some insurers offer cheaper premiums for Aussies who don’t use their cars so often.
How heavily some of these factors weigh in the insurer’s calculations really depends on the insurance company, however. So with each insurer putting a different price tag on your policy, it is super important to shop around and not just go with the first quote you get! The Mozo team have conducted several car insurance mystery shops over the years and always found that there is a big difference in price between insurers.
What is a policy ‘excess’?
The ‘excess’ is the amount of money you’ll have to pay your insurer upfront if you make a claim. Most car insurers offer you the option to choose your own excess level or give you a certain degree of leeway, at least. If you choose a really high excess, your premium will be cheaper but you’ll also need to pay a higher amount to access your coverage.
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 $400 to $2000.
- Unlisted driver excess: If you want to make a claim and the driver that was involved in an accident is not listed on the policy, it is likely that you will be asked to stump up an unlisted driver excess. This amount could be as much as $1400!
- 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 in the region of $200 to $800.
- Windscreen excess: Some policies will provide windscreen or glass cover but charge a smaller excess than your regular excess for you to access that particular feature of your coverage. 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.
What is a ‘No claims bonus’?
Want to save on your comprehensive car insurance policy? Well here is one way to do exactly that! A ‘no claims bonus’ is a discount that is applied to car insurance policyholders who have a clean track record and haven’t made any claims against their car insurance. In Australia there are different tiers of discount that apply depending on how long you’ve kept a claims-free history, but this amount can reach as high as 70% of your premium with some providers. The good news is that the no claims period that you’ve built up with one insurer, in most cases, can be transferred to another but keep in mind you might not be offered the same rate of discount.
How else can I save on my car insurance?
There are a range of discounts that are up for grabs so that you can reduce your premium. Each insurer 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 and will reward you with discounts depending on the amount of policies you take out with them.
Online discount
Insurers are moving online nowadays, and therefore some policies will be slashed if you take them out online rather than in person at a branch.
Restricted driver discount
If you can guarantee that 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 parent’s 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 and 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 the difference between “market value” and “agreed value”?
When comparing comprehensive car insurance online, you’re bound to come across the terms “market value” and “agreed value”. While we have a dedicated guide to help you understand the difference, they can be summed up simply by saying that market value is the amount your car would fetch on the open market while agreed value is a predetermined amount that you agree to insure your car for with your insurer.
These figures become important in the case you want to make a claim or your car is written off in an accident or insured event.
What happens if my car is written off?
If you car is deemed a write-off, your comprehensive car insurance policy will step in and either pay out your sum insured amount or pay for the purchase of a new car, minus your excess amount.
A car is considered to be a write off when he costs to repair the damage outweighs the value of the vehicle and this will be determined by your insurer’s assessors.
How do car modifications affect my comprehensive car insurance costs?
If you’ve recently kitted your car out with a sweet stereo system or aftermarket sunroof, you have the choice of insuring your car for these additions or not. If you don’t upgrade your comprehensive insurance and you find yourself in an accident then your car insurer may deny your claim if the modification wasn’t listed on your policy.
And don’t think that all modifications will result in an increase insurance premium. Some modifications like an alarm system, could result in a premium saving.
It is also worth checking with your insurer prior to making modifications to make sure that it won’t void your car insurance. The last thing you want is to get your car detailed and find out that the insurer has a policy against insuring cars with a matt black paint job.
What are some of the additional 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 but some of the standard features to consider include:
- Windscreen cover: Windscreen cover is sometimes an additional extra that 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 but bear in mind, you might have to pay an excess to use this feature of your policy.
- Choice of repairer: A neat feature, 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 your set of wheels being fixed by them and them alone.
- Rental cover: If your vehicle is facing a stint on the sidelines, how will you get about? This is where rental 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: It isn’t just your car that you hold most dear, but also some of the property within it. Personal property cover kicks in if your car is raided or you’re in an accident and your designer sunglasses 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 insurers 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.
Will I have to pay my full car insurance cost upfront?
Most car insurance policy quotes are worked on an annual basis. And while you will have the option to pay your insurance policy in full at the time of signing up for cover, the insurer might offer the option to pay for the cost in monthly installments. With some insurers, this feature is offered at no extra cost, while others will include a slight premium to give you the flexibility to pay it on a monthly basis.
If you do opt for the monthly feature, it is a good idea to sign up for a direct debit as this means that you don’t always have to remember your repayment date, and you can rest easy knowing that your car will be covered. There would be nothing worse that going to make a claim only to find out that you’d missed a payment and voided your insurance!
What do I need to know about 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
- 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
- police report (if applicable)
When it comes time to lodge your claim, the great thing is that the majority of insurers 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 and if it was an at fault accident a possible hit to your hard-earned no claims bonus.
