Car insurance in the ACT

It comes down to your situation and what level of protection (and peace of mind) you’re after.

If you get into an accident, MAI insurance will provide a safety net that could help cover the medical costs of any injured drivers, passengers or pedestrians. But if you damage the other driver’s vehicle or someone else’s property, the repair costs could come straight out of your pocket.

Only a third-party property, third-party fire and theft, or a comprehensive policy could cover the repair costs if you damage another person’s vehicle.

And if you’re at fault, a comprehensive policy could help cover some or all the repair costs of your own vehicle if it’s damaged in the accident.

These are the things to think about when deciding whether you need extra coverage on top of what MAI provides.

Anyone living in the Bush Capital can breathe easy. The ACT historically has had the lowest rate of fatal car crashes in Australia. In fact, as of December 2023, ACT had 0.9 annual deaths per 100,000 people (compared to the highest of 12.3 and 6.3 in the Northern Territory and South Australia, respectively).¹Department of Infrastructure, Transport, Regional Development, Communications and the Arts –Road deaths Australia

Unfortunately, the ACT doesn’t have a stellar record when it comes to motor vehicle theft. From 2021-2023, the territory recorded the highest victimisation rate throughout the entire country at 41.6% for motor vehicle theft (a stat far off from the second: Northern Territory’s 18.8%).

ACT also recorded 11.3% victimisation rate for theft from a motor vehicle, a close second to NT’s 12%.²Australian Bureau of Statistics –Crime Victimisation, Australia That means personal effects are getting stolen inside the vehicle in the ACT more than most of the other states.

And as if these numbers aren’t enough, the ACT Police also reported a total of 652 motor vehicle theft in the first eight months of 2024.³Australian Federal Police ACT – ACT – Offences and other activities

All these stats mean one thing: There’s a high rate of car theft in the ACT and it might be time to get a third-party theft or comprehensive insurance policy, if you don’t have one yet.

Don’t forget to get a car alarm, too!

Toyota, Holden and Ford top the thieves’ list for their favourite car brands to steal. Kia, Jeep, Land Rover, and Isuzu are also becoming hot targets.⁴The Senior – Australia’s most frequently stolen cars revealed

Choosing comprehensive car insurance can be a bit more involved than MAI or third-party cover. Your insurer might even offer a selection of optional extras:

• Personal effects coverage: Do you tend to keep personal items, such as your handbag, mobile phone or clothing, inside your car? This can help cover the replacement costs if they’re damaged or stolen.
• Vehicle towing after an accident: This will help cover the costs of having your vehicle towed to the nearest repairer after an accident.
• ‘Agreed’ or ‘market value’: Many insurers let you choose between these two types of cover. Agreed value policies insure your car for a fixed sum when you make a total loss claim and can cost more. Market value means that it’s assessed based on its condition and current value at the time of a claim.
• Hire car access: Some policies might offer access to a hire car in certain circumstances while others might charge an additional premium for this feature
• Roadside assistance: Check with your insurer to see if roadside assistance is included under your cover, any cost associated and how far from home it will provide help when you get stuck.
• New car replacement: Some insurers offer to replace a vehicle in a total loss claim with a new car of the same make and model if yours is within a certain age limit.

Some policies might include these features as part of your comprehensive cover, without requiring you to pay extra. But it really depends on the terms of your policy and can vary from insurer to insurer. For this reason, you’ll always want to check out the policy’s product disclosure statement (PDS) to find out which features are included, and which are offered as optional extras.

• Regular policy checks: At renewal time, you might want to have a look around to see if there’s a better option out there.
• ‘No-claims’ bonus: If you’re a safe and skilled driver who hasn’t made a claim in a number of years, insurance companies might reward you for your good record. The longer you are ‘claim-free’, the larger your discount could be, so check this with your provider.
• Increase your excess: A car insurance excess is how much you’ll pay out of your own pocket when you make a claim. A higher excess means a lower premium, but it also means you’re taking on more financial risk if you make a claim.
• Age restrictions: You might be able to score a cheaper premium by adding an age restriction on your policy, such as restricting drivers younger than 25 (commonly seen by insurers as high-risk) from driving your car.

You’ll also want to keep in mind that a cheaper policy isn’t necessarily better. Check the policy’s PDS to ensure that it will give you the cover you need, when you need it.