On this page :
Buy smarter with CHOICE membership
- Find the best brands
- Avoid poor performers
- Get help when things go wrong
Join CHOICE
or
Learn more
Types of car insurance
This is the best cover choice but besides the most expensive. It includes the price of crash repairs or replacing your cable car, even if you ‘re at fault .
Recommended for
Anyone who good ca n’t do without four wheels at any time .
What does comprehensive car insurance cover?
Most comprehensive cable car indemnity policies cover the like basic events, like :
- theft
- accident
- fire
- flood
- vandalism
The differences are in the details. For example, not every policy covers the contents of your car, and flush if it does there might be restrictions .
normally excluded items are electronics and cash. We ‘ve besides seen a pair of policies that do n’t offer cover for steal belongings .
Another thing to consider is wayside aid – while car indemnity does n’t cover you in the consequence of a breakdown, many insurers do have roadside aid programs that you can buy into at a deduction .
A third base bad point of dispute is contaminated fuel : will your car be covered if it ‘s damaged because you filled up at a gasoline place that cut corners ?
This provides essential embrace against claims for compensation if you injure or kill person in a cable car accident .
If your car ‘s registered then you already have compulsory third base party policy ( CTP, or k slip indemnity ) .
- In all states and the NT (apart from NSW and Queensland), CTP insurance is provided by only one state-owned or government-licensed insurer.
- In NSW and Queensland it’s offered by a number of insurers and it pays to shop around. For an online price guide go to NSW’s State Insurance Regulatory Authority or Queensland Government Motor Accident Insurance Commission.
- In the ACT there are four licensed CTP insurers: AAMI, Apia, GIO and NRMA.
- Think CTP is enough? It doesn’t cover you for damage caused to other people’s property such as you driving into a Ferrari – that’s a whole lot of repair bills coming your way.
If you ‘re at fault in an accident, third party property policy helps to have top to fix the early person ‘s car ( unlike CTP, which does n’t cover you for damage to early peoples ‘ property ). Third party property report is the least expensive choice after CTP. It covers you for the wrong you may cause to another car and may include limited cover for damage caused to your car by an uninsured driver .
Recommended for
If you ‘re under 25 and driving a 1995 Mazda 121 with a broken tape pack of cards and an Australia-shaped coating hanger, then this is probably the policy for you. Insure everyone else ‘s car alternatively of your own. The money you save on premiums will have you driving something beneficial much preferably .
This besides covers you if your cable car is stolen or burnt. It ‘s a step up from third base party place, but not vitamin a broad as comprehensive policy .
Recommended for
This is the car policy equivalent of an each-way bet. You ‘ve upgraded to a 2001 Holden Berlina with a break certificate of deposit player that you tend to park in dark alleys so you ‘re worry about it getting stolen, but you even ca n’t justify paying for comprehensive premiums .
Looking for car insurance comparison?
Compare more features to find the right cover for you .
Compare car insurance comparison
What level of car insurance do I need?
ultimately it comes down to how a lot it would hurt to go without your cable car if you always wrote it off .
Comprehensive policies offer a match of weeks ‘ worth of car hire if you write your fomite off in an accident where you ‘re at defect .
Is it worth getting comprehensive insurance for an old car?
No one wants to be caught underinsured, but if you ‘re paying more than 10 % of the car ‘s value every year in premiums you might want to consider a cheap policy
Third party property is a good alternative – no one wants to be stuck paying for person else ‘s repair bill .
Third-party property with fire and theft cover your vehicle for a couple of calamities, letting you put aside some cash in a self-insurance economy account. By self-insuring, you do n’t have to deal with an insurance party when something goes improper, but you do have to resist the urge to dip into the store .
If your car ‘s commercialize prize is low, you might want to consider a cheaper type of policy .
Agreed value and market value: what’s the difference?
For drivers with comprehensive examination or open fire and larceny policies, the sum your insurance company will pay if you write off your car depends on your agreed value or market value.
Read more: The Best Car Insurance Companies for 2022
Agreed value
This is when you insure your car for a specific sum ( within a range set by the insurance company ) .
If your car is a total loss ( i.e. written off or stolen ), the insurance company will pay you this come, less the overindulgence .
If your car is under finance, consider insuring it for an agreed value that ‘s at least equal to the total remaining on the loanword. That way, if you have a full loss you ‘ll be able to square away the debt before looking for a newfangled cable car .
Market value
This is when you insure your car for what its value is at the clock of an accident .
Selecting this option reduces your bounty, but it gives you less certainty about the measure of your payout in the event of a passing .
Insurance tips, discounts and traps
Know your excess
An excess is the amount you pay to make a claim. The higher your excess, the lower your agio .
Increasing your excess can save you money but be wary of a actually high excess – it wo n’t be worth your while to make a smaller claim .
Look for ‘no claims bonus’ discounts
Every insurance company has a list for this : no claims rebate ( NCD ), safe driver bonus, the list goes on. Essentially it ‘s a discount for not making a claim. The come of the dismiss varies depending on the insurance company. A ‘maximum ‘ fink ( which normally means no claims for five years ) can save you up to 70 % .
Some insurers offer a lower NCD, but will besides give you a discount on their wayside aid merchandise .
You can often pay supernumerary to protect your NCD, meaning if you do have an accident, it wo n’t affect your evaluation. But if you have a protected no claim bonus, do n’t assume an ‘at fault ‘ claim wo n’t have an impact on your premium. Some insurers increase your premium regardless. even a ‘no demerit ‘ title such as acclaim wrong can impact on your premium .
Some insurers let you pay supernumerary to protect your no claims deduction, so your rat wo n’t be affected if you do have an accident .
Get a discount for restricting drivers
Some companies discount the premium if you restrict the function of your car to nominated drivers or those over a certain age .
If you take this up you should n’t let an exclude person drive – if they have an accident it ‘s you who ‘ll pay a high extra excess or you may not be covered at all .
How to get other discounts
Discounts may be available if you have other policies with the same caller, have an approved engine immobiliser or alarm installed in your car, or take out policy on-line. long-run customers, pensioners, people aged 50 to 70 and youthful drivers who ‘ve completed a skilled driver ‘s course may besides receive discounts .
Insurers do n’t mechanically reward loyalty or make discounts available. You have to ask a company for discounts when shopping for a policy. You should shop around at least every one to two years to make sure you get the best deal. We ‘ve heard from members who got an on-line quote from their own insurance company and found that it was cheaper than their refilling skid .
Some insurers will give you a rebate for insuring more than one vehicle, or if you insure your home through them. This can be a good direction to shave some dollars off your premium, but do n’t let that be the deciding factor in your leverage .
Buying a car?
If you ‘re trying to decide between different models, it ‘s worth checking out what the indemnity would be on each. Some models attract a much higher premium because they ‘re more likely to be stolen. This could add hundreds of dollars to your policy placard each year. even the discolor of the car can affect your premium .
Avoid the ‘loyalty penalty’ from insurers
A fortune of people remain loyal to their current insurance company, which is a contributing factor in reclamation premiums being raised each year .
Insurers can and do increase premiums more for renewing customer than for modern customers. This is basically a ‘loyalty penalty ‘ – the price we pay for the reluctance to switch .
respective insurers attribute the premium deviation to the on-line discount, which is available to new customers but not to renewals station to existing customers .
Be careful of discounts that lone last for your first policy year – they ‘re just there to get you through the door, and you ‘ll be stung with a steep increase in a class ‘s time .
Insurers can and do increase premiums more for renewing customer than for new customers
Always check your insurance company and at least three early insurers ‘ quotes online before renewing your bounty .
several insurers in our car insurance comparison said they ‘d match or beat competitors ‘ quotes, normally as separate of a crusade .
If you show more of a willingness to switch, then insurers will have to recognise this in their premiums or risk losing business to their competitors.
Looking for car insurance comparison?
Compare more features to find the right report for you .
Compare car insurance comparison
Join the conversation
To share your thoughts or ask a question, visit the CHOICE Community forum .
Visit CHOICE Community