Poncho car insurance


This new kid on the car insurance block is all about flexibility and simplicity. With Poncho Insurance, you’ll find a car insurance policy that’s easy to manage even if you need to make changes or cancel cover on short-notice. Poncho’s unique identifier is its rolling monthly policy. Instead of committing to annually, you’ll pay month-by-month at no extra cost, and can cancel any time without incurring fees.

Poncho offers the following car insurance policies

Product Monthly premiums available Maximum no claim discount Online discount Choice of repairer  


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*Any information provided on this page should be considered a summary and general advice only. All information should be verified before purchase via the relevant Product Disclosure Statement (PDS).

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What’s the deal with Poncho’s subscription-style car insurance?

While many car insurers will give you the option to pay your premium monthly, this often comes with small additional processing fees. And even though you’re paying in monthly installments, most policies are annual commitments. 

Poncho’s rejigging this rigid industry standard with its subscription-style car insurance. It resembles other month-to-month subscriptions in that you aren’t charged for the flexible payment schedule. You can also cancel without incurring a fee like you might if you were to leave an annual policy before the renewal period. 

The company doesn’t offer an annual option. Instead, each month you’ll receive an email renewal notice which addresses any changes – you’ll have access to any new features that month, rather than waiting until an annual renewal – before you sign up for another month of cover. If you don’t respond, your cover will be automatically renewed.

What’s covered:

Poncho keeps things simple and only offers the single comprehensive car insurance policy. This means a lot of events and items are covered, including:

There’s also a range of additional features which have different cost limits, so be sure to check your Product Disclosure Statement (PDS) for details. These include things such as cover for child seats and baby capsules, towing costs, lock and key replacement, emergency travel and accommodation, and transport cover if your vehicle is out of action.

What’s not covered:

In its keep-things-simple style, Poncho hasn’t added any extras that typically come with a higher price tag. Sure, your premium will reflect your personal circumstances, but you won’t have to fork out more cash to get a higher grade of cover at Poncho.

Like any insurance policy, there are circumstances that’ll void your cover. Some of these are fairly obvious, like if your wheels get damaged in the process of carrying out crime, driving recklessly or while intoxicated. But then there are less straightforward situations where your policy won’t cover you, like if you use your car to make cash (e.g. drive for Uber) or if you’re driving it outside of Australia. Check out the Poncho PDS so you know when you won’t be covered.

What’s so simple about the excess?

The excess for Poncho Car Insurance is $800. They keep it at this level to avoid big bills for bigger breaks, and it means your premium is assessed separately from the excess. Keep in mind the excess for unlisted drivers is $3,000, so be really sure if it’s worth letting a mate drive your car if they’re not on the policy.

As a little bonus, Poncho won’t charge excess for windscreen, window or sunroof repair.

How will the cost of my premium be determined?

When you sign up for a policy, Poncho uses vehicle valuation site RedBook.com.au to assess what your wheels are worth. Alongside this value assessment, your premium will be determined by information you provide, including:

Flexible replacement transport choice

After an accident, many comprehensive policies will cover costs for a hire car for a certain period or daily amount. Poncho’s policy lets you choose what mode of transport would be most suitable for the period that your car is in the shop or being replaced (up to 14 days). Whether it’s public transport, rideshares or a hire car, you’ll be covered for up to $50 a day.

Other FAQs:

How do I make a claim with Poncho?

After ensuring any injuries are attended to post-accident, Poncho recommends you grab all the details of people involved in the crash as well as any witnesses. Beyond this, the claims process starts with the policyholder calling or emailing Poncho ASAP, then lodging a claim online or over the phone. 

Remember you’ll need to have proof of ownership and any damages to the vehicle and be ready to answer Poncho’s questions to get the claim ball rolling. If it’s accepted, Poncho will direct you on anything you might need to do to get repairs or replacements underway. If it’s an accepted legal liability claim, Poncho will take the reins on defending or settling the claim.

Can I add another policy holder?

Yes. Poncho has no limit on the number of policyholders on any one policy. It doesn’t cost anything to add additions but all policyholders are responsible for the accuracy of any statements about the vehicle as well as information about claims. 

What is ‘single car value’?

This is the term Poncho uses to describe the market value of your car, which is determined through the initial valuation process.

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