Car insurance

🚗 Buying Car Insurance in Australia: What You Need to Know

Choosing car insurance isn’t one-size-fits-all. Just like buying a car, the right policy depends on your personal needs, how you drive, and what level of protection you want. While price matters, don’t make it your only consideration—features, cover levels, and exclusions vary widely.

Here’s everything you need to know to make a smart decision about car insurance in Australia.

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🛡️ The 4 Main Types of Car Insurance

1. Compulsory Third Party (CTP) Insurance

   • Legal requirement in all states and territories

   • Covers personal injuries to other people (drivers, passengers, pedestrians, cyclists)

   • Doesn't cover damage to vehicles or property, or injuries to the at-fault driver

2. Comprehensive Insurance

   • Covers your car and other vehicles or property in an accident

   • Includes theft, fire, weather damage, and often extras like hire cars or windscreen replacement

   • Ideal for cars in good condition or with high value

3. Third Party Property Only

   • Covers damage your car causes to other people’s property

   • Doesn’t cover your car

   • A good low-cost option for older, low-value vehicles

4. Third Party Fire and Theft

   • Everything in Third Party Property

   • Plus cover if your car is stolen or damaged by fire

💡 Tip: CTP is mandatory, but for broader protection, you’ll need one of the other three.

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📘 What to Check Before You Buy

Before signing any insurance policy:

• Read the Product Disclosure Statement (PDS) carefully

• Understand what is and isn’t covered

• Ask your insurer about anything unclear—especially excess, driver rules, and modifications

🔗 Find an insurer at findaninsurer.com.au

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🧠 Key Questions to Ask When Choosing a Policy

• What type of car insurance is right for me?

• Do I need a hire car after an accident?

• Is the car covered for agreed value or market value?

• What excess will I pay?

• Will my no-claims bonus be affected after a claim?

• Can I choose my own repairer?

• Are all regular drivers listed on the policy?

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💵 Understanding Premiums

Insurance premiums vary—and here’s what may influence them:

• Type of cover and options chosen

• Where you park the car (street, garage, etc.)

• Driver age, experience, and history

• Car type, age, and usage (private or business)

• Agreed vs. market value

• Security features or modifications

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🔒 Ways to Lower Your Premium

• Park in a secure location

• Maintain a clean driving record

• Limit younger or inexperienced drivers

• Choose a higher excess

• Select market value instead of agreed value

• Drive less often

• Bundle policies (e.g. with home or contents insurance)

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✅ Common Discounts

Many insurers offer:

• Multi-policy discounts

• No-claims bonuses

• Loyalty savings

• Online sign-up discounts

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🚨 What CTP Covers vs. Other Insurance

Type	Covers Injuries to Others	Covers Your Car	Covers Other Cars	Covers Theft/Fire
CTP	✅	❌	❌	❌
Comprehensive	✅	✅	✅	✅
Third Party Property	❌	❌	✅	❌
Third Party Fire & Theft	❌	Partial	✅	✅

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❗ Important Extras to Understand

1. Excess:
The amount you must pay when making a claim. Varies by driver age, experience, and claim type.

2. Market vs. Agreed Value:

• Market Value = what your car is worth at the time of claim (depreciated value)

• Agreed Value = fixed payout agreed when the policy starts

3. Listing Drivers:
All regular drivers should be listed. Failing to do so may lead to higher excess or a rejected claim.

4. Learner Drivers:
Most insurers cover them if a fully licensed driver is supervising. Check if an age or inexperience excess applies.

5. Personal Items in the Car:
Not always covered. Some home contents policies might cover items stolen from your vehicle.

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📍 What If You Have an Accident?

If you're in a crash:

1. Ensure everyone is safe

2. Call 000 for serious injuries or if anyone refuses to exchange info

3. Collect:

   • Names, contacts, licence and rego details

   • Photos of damage and the scene

   • Witness details

4. Contact your insurer for next steps (including towing or a hire car)

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🚫 What Might Void or Reduce a Claim?

Your claim might be rejected if:

• The driver was under the influence

• The car was unregistered or in poor condition

• You didn’t disclose key info (e.g. previous accidents or car modifications)

• You weren’t truthful during the application

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🏁 Final Tips to Save and Stay Covered

• Review your policy annually

• Notify your insurer if your circumstances change

• Avoid leaving valuables in the car

• Check if you're covered for off-road driving or car modifications

• Compare policies before you renew—there’s a lot of choice out there