Uninsured drivers are the reason your car insurance premium is rising

Part of your comprehensive car insurance premium is being used by insurers to cover the costs of uninsured drivers, according to a report from the Brotherhood of St Laurence.

According to The Pranged: The Real Cost of Optional Vehicle Insurance in Australia, Aussies are paying an extra $45 a year on their premiums, as insurers attempt to compensate for the unrecoverable losses that at-fault uninsured drivers represent.

Drivers with a comprehensive policy can make a claim on their own insurance for accidents that aren’t their fault, if the at-fault driver is uninsured. The report suggests that to account for this, insurers are raising comprehensive policy premiums, costing insured drivers a nationwide $1.3 billion.

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The author of the report, Tony Robinson, said that the current car insurance system employed here is “plainly unfair”, but simply switching to a mandatory scheme like the one used in the UK - where the minimum legal insurance covers drivers personal injury and property damage of others - wouldn’t work in the Aussie market.

“Mandatory schemes still record significant percentages of people who don’t pay for compulsory cover. What if they are dependent on cars for work? You can’t take cars off people,” said Robinson.

The current Aussie car insurance system involves a compulsory third party insurance policy, also known as a greenslip (CTP) which covers the cost of personal injury to others, but property damage cover is optional.

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And it turns out that a substantial chunk of Aussies aren’t taking up that option with the research estimating that approximately 12% of Aussie vehicles are uninsured for third party property damage and that uninsured drivers were at fault in approximately 114,000 accidents per year.

Robinson said that when Aussies pay for their car registration and CTP insurance, many believe they’re covered for property damage without realising that they need to seek out either a third party or comprehensive car insurance policy to get that added security.

If you’re a little confused at how our current system works, check out Mozo’s dedicated car insurance hub for a whole range of informative guides.

Comprehensive car insurance policies

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Last updated 21 July 2024Advertiser disclosure
Important information on terms, conditions and sub-limits.
  • Comprehensive Car Insurance

    Youi like to get to know you from the very first conversation, which provides you with the opportunity to find comprehensive car insurance cover that could better suit your lifestyle and your needs. Because we’re all individuals, so we all use our cars differently from day-to-day. Youi is car insurance that’s a bit more you-shaped.

    Monthly premiums
    Calendar icon
    Yes Costs Extra
    Choice of repairer
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    Optional Extra
    Choice of excess
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    $400 - $2,500
    Agreed or market value
    Car coin icon
    Agreed Or Market

    Available discounts

    • Comprehensive Car Insurance

      ROLLiN’ put their customers in the driver’s seat by offering great value comprehensive car insurance with no additional excess for young drivers. Zero cancellation fees, 24/7 claims support via phone and a policy paid monthly. Plus, you can list multiple cars and drivers under the one policy, as long as they fit the underwriting criteria

      Monthly premiums
      Calendar icon
      Yes
      Choice of repairer
      tools icon
      No
      Choice of excess
      coins icon
      $800 Flat Excess Fee
      Agreed or market value
      Car coin icon
      Agreed Or Market

      Available discounts

        Details
      • Gold Comprehensive Car Insurance

        Get award winning Car Insurance. Save 15% ^ on your first year’s premium when you purchase a new policy online. Budget Direct offers tailor-made cover, new-for-old replacement, 24/7 claims, a highly-rated claims service, and get a hire car following a theft.

        Monthly premiums
        Calendar icon
        Yes Costs Extra
        Choice of repairer
        tools icon
        Optional Extra
        Choice of excess
        coins icon
        $550 - $1,900 (varies By State)
        Agreed or market value
        Car coin icon
        Agreed Or Market

        Available discounts

        • No Claim Discount
        • Online Discount Up To 15%
        Details
      • Comprehensive Car Insurance

        Australia Post Comprehensive Car Insurance offers a broad range of coverage and includes cover for anyone who drives your vehicle. It also covers new car replacement if your recently purchased brand new car is written off within the first three years (provided it has travelled less than 60,000km). Get $100 off your first year's premium when you buy Comprehensive Car Insurance online. T&Cs apply.

        Monthly premiums
        Calendar icon
        Yes Costs Extra
        Choice of repairer
        tools icon
        Optional Extra
        Choice of excess
        coins icon
        $500 - $2,200
        Agreed or market value
        Car coin icon
        Agreed Or Market

        Available discounts

        • Online Discount $75
        Details
      • Seniors Car Insurance

        TrueCover is run for people, not profit. TrueCover provides comprehensive cover tailored to Australians over 50 years of age. Includes roadside assistance, ambulance cover, no maximum driver age, death/funeral benefit, new car replacement and an Australian-based contact centre. Insurance not offered in NT.

        Monthly premiums
        Calendar icon
        No
        Choice of repairer
        tools icon
        No
        Choice of excess
        coins icon
        $500 - $2,500 (varies By State)
        Agreed or market value
        Car coin icon
        Agreed

        Available discounts

        • Price Beat Offer Available For Eligible Drivers Over 50 Years Old Switching From A Comparable Policy With The Code ‘SENIORS’. T&Cs Apply.

      Mozo’s top tips to choosing car insurance

      • Choose between third party or comprehensive: The first big decision you need to make is whether you want insurance to cover just the damage you cause to another person’s property (third party) or whether you want your own car covered too (comprehensive). To help you decide, we’ve put together this helpful guide.

      • Set a budget: One of the most important parts of choosing your car insurance policy is to figure out how much you’re willing to spend on your precious set of wheels. Set a number that you won’t exceed and keep it simple by making that amount how much you’re willing to pay in the form of an annual rather than monthly premium.

      • Shop around: Lugging yourself around from one provider’s site to the next can be pretty tedious. Luckily for you, Mozo compare a range of car insurance policies to help you find one that is just right for you.

      • Make the most of discounts: When shopping around, you’ll see that there is a number of discounts that particular car insurance companies offer that will reduce your premium, so make sure to check your eligibility so that you can save!

      * Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.

      ^See information about the Mozo Experts Choice Car Insurance Awards