Everything you need to know about car insurance quotes

If it’s your first time searching for a car insurance quote, or if you just want to brush up on what to look out for, understanding the car insurance quote process will give you an edge when comparing policies.

There’s a general process to getting a car insurance quote, which includes:

• Choosing a type of car insurance 
• Choosing some optional extras 
• Shopping around for deals
• Securing quotes from car insurance providers
• Deciding which policy is best for you.

But before we get into the mechanics of choosing a car insurance policy, a brief overview of what an insurance quote actually is, and how you can use it to help your decision making process.

An insurance quote is an estimate from an insurance provider of how much you’re likely to pay for your policy and what might be included. They aren’t final figures, but are usually a good indication of the insurance premium you’ll need to pay for it. 

The quotes are calculated based on the information you give to the policy provider. So, if you want a clearer picture of the insurance costs and coverage, then it’s within your interest to provide the right details when applying for a quote. 

Insurance quotes aren’t a contract, so it’s a good idea to shop around and make sure you’re getting what you need from a provider. Don’t feel obligated to choose the first policy that’s handed to you.

These days, getting a quote for a car insurance policy can be done completely online. But before you launch headfirst into a quote-frenzy, consider which type of car insurance is best for you.  

Choose a type of car insurance

The three main types of car insurance are:

• Compulsory third-party (CTP)
• Third-party property 
• Comprehensive. 

Compulsory third-party (CTP) is a minimum legal requirement, but it differs in scope and price depending on where you live in Australia. It’s the most basic insurance for your car, which only provides cover for injuries to yourself, passengers, and other drivers. It protects you from financial liability. 

Third-party property car insurance is your mid-level type of insurance, which covers damage to others’ cars or property, up to an agreed-upon amount. You might also be able to secure cover fire and theft, among other add-ons, for an additional premium. 

Comprehensive car insurance is the big-league. As the name suggests, it usually comes with a lot more bells and whistles than the minimum CTP and third-party property policies. Some of the benefits you’ll generally see include:

• Accidental damage caused by you (for your own vehicle, other drivers’ vehicles, and property)
• Weather events (hail, storm, flooding, and fire)
• Theft and attempted theft
• Vandalism and malicious damage
• Some modifications
• Emergency repairs (up to a certain amount)
• Car hire (often only available in some circumstances)New-for-old replacement car (with age and kilometre conditions)
• Towing costs after an accident
• Accomodation and travel costs after an accident.

While you’re usually getting a lot more out of a comprehensive policy, your premium will be higher than the other two types of insurance. That’s why it’s important to consider your options, read the PDS, and compare the quotes you receive from providers before you make up your mind. 

Choose your optional extras 

Some third-party and comprehensive policies include more than others as standard. But many car insurance providers will offer optional extras which you can add on to your policy to tailor it to your needs. 

These will increase the premium you pay, but it may be cheaper than having to front the entire cost if something happens to your vehicle. 

Optional extras can include:

• Malicious damage and vandalism (usually a comprehensive basic)
• Natural disasters like flood and hail
• Fire and theft (usually a comprehensive basic)
• Choice of repairer
• Lifetime guarantee on repairs
• Emergency repair (usually a comprehensive basic)
• 24-hour roadside assistance
• Excess-free windscreen repair
• Rental car if car after an incident (post-theft, usually a comprehensive basic)
• Multiple drivers.

Shop around for deals

Before you request quotes from any old insurance provider, we recommend doing a little research to narrow down your focus. 

Compare car insurance policies with Mozo to see features and discount offers before clicking to get a personalised online quote for your car. 

You’ll be able to quickly see what comprehensive car insurance providers offer, including: premium payments options, choice of repairer, excess payment options, agreed or market value vehicle valuations, or any other important features or discounts.

Secure some quotes from car insurance providers

After you’ve had a look at Mozo’s car insurance comparison table and found some policies that spark your interest, you can simply click through to the provider’s site and get the quote process underway. 

The sorts of questions you can be expected to answer when requesting a quote might include:

• What car you are insuring (make, model, year, modifications, etc.)
• Questions about who drives the car
• Your age and gender 
• How you use your car
• Where you usually park it
• What area you park in overnight (e.g. a high crime-rate area may increase your premium) 
• Questions about the insured driver’s driving and claims history.

These questions help car insurance providers to make a risk-assessment and provide you with an estimate of how much you might have to pay to be insured by a specific provider. The providers are trying to strike a balance between competitive pricing and value, and the financial risk posed to them by insuring someone’s vehicle.  

Decide which policy is best for you

Once you’ve received quotes from the car insurance providers you’re comparing, don’t just go for the cheapest one. While price is a big consideration for many, try to work out which one suits your circumstances and needs the best by considering:

• What you could be covered for
• How much excess you might need to pay
• If the optional extras are suitable for you 
• If the PDS has any exclusions which trouble you. 

After you’ve considered those factors, then you can make your choice with at least a little more confidence than when you started. 

Check some of the latest deals in Mozo’s car insurance database below!