4 questions to ask before dropping your comprehensive car insurance
Wondering whether your comprehensive car insurance is worth it? Before you ditch your policy for a cheaper option with less coverage (i.e. CTP or third-party), it's probably worth a refresher on why comprehensive car insurance is king.
What does comprehensive car insurance cover?
While comprehensive car insurance policies can differ, you're typically covered for:
- Damage to someone else’s car or property
- Damage to your own car
- Theft
- Fires
- Floods
- Storms
- Earthquakes
- and more.
If you’re still not convinced about the value of your comprehensive policy, we strongly suggest you ask yourself the following questions before you decide to downgrade your car insurance cover:
What is the value of your car?
If the annual cost of your car insurance is less than the value of your car, it could be worth keeping your comprehensive policy.
It's true that cars depreciate in value each year. So, you might ask yourself whether paying your car insurance premium is still worth it.
The answer really depends on your wheels, but a good rule of thumb is: until the sum of your annual premium and excess outweigh that of your car's value, it's probably still in your best interests to keep your comprehensive policy – especially if you can’t answer question 2 with a resounding “yes!”.
Can you afford to replace your car or live without it?
If you can't afford to replace your car, or live without one, then it could be worth holding onto your comprehensive car insurance policy.
If it's possible for you to arrange other modes of transport to get to work, or if your car's more of a luxury transportation device for you, then you might consider dropping your comprehensive policy.
However, if you don’t have a sizeable sum of cash laying around or if you absolutely need your car for family or work purposes, this probably isn’t an option.
If you ditch your comprehensive car insurance, then get in an accident, you could be without your car until the necessary funds become available to fix or replace it.
Do you owe money on your car?
If you're still paying your car off, then it could be worth keeping your comprehensive policy in case you're in an accident.
Did you have to externally finance the purchase of your car? You might not be able to drop your comprehensive car insurance without voiding the conditions of your loan. So, check with your car loan provider before taking steps to cancel your comprehensive policy.
Even if that’s not the case, dropping comprehensive car insurance with a pricey car loan hanging over your head might not be the smartest move.
If you find yourself in an at-fault car accident, then you could be left with the bill to repair or replace your car as well as the outstanding loan.
So, consider holding onto your comprehensive car insurance if you’ve got loan repayments to keep up with.
What are your car insurance alternatives?
If you’ve gotten this far and are still considering making the switch to a more budget-friendly car insurance option, then you’ll want to know exactly what your options are.
If you’re not wanting to insure your car comprehensively anymore, you generally have two options: third party property and third party fire and theft.
Third party property
Consider this as the entry-level car insurance option.
It will cover you for the damages you cause to other people’s property, but it could be pretty minimal cover (usually starting around $5,000). If you write-off someone else’s car, you may have to pay the difference out of pocket to replace it as well as managing your own repairs or replacement.
Third party fire and theft
Car insurance companies usually give you the option to add fire and theft cover to your third party insurance for a few extra bucks a month. This gives you added security against a range of circumstances, depending on your provider and what you select.
While this level of car insurance will cover you against fire and theft, it probably won’t cover you for things like vandalism or storm damage – so check the fine print.
Across all these coverage levels, there are some things generally not included. So before you make any changes to your policy, make sure you know what isn't covered by car insurance in Australia.
And don't forget you'll also need to take out compulsory third party (CTP) insurance to legally drive in Australia. This essential level of car insurance covers you for costs related to injuries and deaths caused by road accidents.
If after reading this you’re feeling a little uneasy at the thought of going without your comprehensive car insurance, it is probably best to stick with a higher level of cover. But remember to shop around using Mozo’s car insurance comparison page.
Compare car insurance - rates updated daily
Gold Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- Optional Extra
- Choice of excess
- $550 - $1,900 (varies By State)
- Agreed or market value
- Agreed Or Market
Available discounts
- No Claim Discount
- Online Discount Up To 15%
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.
- New car if written off
- Yes - within 2 years or 40,000 kilometres of original registration, whichever comes first
- Rental car after theft
- Yes - Up to 14 days, max $1,000 total.
- Rental car after accident
- Not at fault - Yes. At fault - Optional Extra. Up to 14 days for at fault accidents.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess to $40 on every windscreen claim for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- $600 for drivers under 21, $500 for drivers under 24, $600 for unlisted drivers, $500 for inexperienced drivers.
- Roadside assistance
- Optional Extra
- Other benefits
- -
- Other restrictions
- -
- States where offered
- SA VIC TAS NSW ACT QLD WA
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.
Read our Mozo Review to learn more about Budget Direct Gold Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes
- Choice of repairer
- No
- Choice of excess
- $800 Flat Excess Fee
- Agreed or market value
- Agreed
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
- New car if written off
- Yes - within 15,000km of original registration
- Rental car after theft
- Yes - Up to 21 days, max $80 per day after a covered event
- Rental car after accident
- Yes - Up to 21 days, max $80 per day after a covered event
- Windscreen cover
- Yes - $0 windscreen excess
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- No additional excess for young drivers. $3,000 for unlisted drivers
- Roadside assistance
- No
- Other benefits
- Optional benefit to boost the Single Car Value by 15%, it will be shown on your Insurance Certificate
- Other restrictions
- -
- States where offered
- SA VIC NT TAS NSW ACT QLD WA
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.
Read our Mozo Review to learn more about ROLLiN' Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- Optional Extra
- Choice of excess
- $500 - $2,200
- Agreed or market value
- Agreed Or Market
Available discounts
- Online Discount $75
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). Save $75 on your first year's premium when you purchase Comprehensive Car Insurance online. T&C’s apply.
- New car if written off
- Yes - within 3 years and 60,000 km of original registration
- Rental car after theft
- Yes - Up to 14 days.
- Rental car after accident
- Not at fault - Yes. At fault - Optional Extra. Up to 14 days.
- Windscreen cover
- Yes - standard excess ($0 excess for repair only). Option to reduce windscreen replacement excess to $0 for an additional premium.
- Modifications
- Automatically covered.
- Young driver excess imposed
- $600 for listed drivers under 25, $1,600 for unlisted drivers under 25.
- Roadside assistance
- No
- Other benefits
- -
- Other restrictions
- -
- States where offered
- SA VIC TAS NSW ACT QLD WA
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.
Read our Mozo Review to learn more about Australia Post Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- Optional Extra
- Choice of excess
- $400 - $2,500
- Agreed or market value
- Agreed Or Market
Available discounts
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.
- New car if written off
- Yes - within 2 years and a listed driver is the first registered owner
- Rental car after theft
- Yes - Up to 14 days.
- Rental car after accident
- Not at fault - Yes. At fault - Optional Extra. Up to 14 days.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess to $50 for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- Unlisted and aged 25 and over: $700, Unlisted and aged under 25: $2,000, Listed and aged under 25: $600
- Roadside assistance
- Yes
- Other benefits
- -
- Other restrictions
- -
- States where offered
- SA VIC TAS NSW ACT QLD WA
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.
Read our Mozo Review to learn more about Youi Comprehensive Car Insurance
* 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.
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