Compare Comprehensive Car Insurance^*

Compulsory Third Party insurance is, well, compulsory. Any further insurance coverage you take out in addition is entirely up to you. Before you compare Car Insurance, you should know the types of Car Insurance available. 

There are four types of Car Insurance in Australia: 

• Compulsory Third Party insurance (CTP): Depending on where you live, this might also be called a green slip. The purpose of CTP insurance is to compensate any person who might be injured in an accident.  It doesn’t cover any damage to property (such as their vehicle or yours). 
• Third Party Property: This helps cover the cost of damage to other people’s property but generally does not cover damage to your own vehicle. 
• Third Party Fire and Theft: The next level up from Third Party Property Insurance, it’ll cover your vehicle in the event it’s stolen or catches fire. 
• Comprehensive: Comprehensive Car Insurance typically includes all eligible claims in relation to the above, plus coverage for your vehicle if it gets damaged or stolen. 

How much insurance you have is up to you. It’s important to remember that if you find yourself involved in an incident, taking out a Comprehensive Car Insurance policy could save you a lot of money in the event of an incident occurring¹. 

<sup>Source:
1. moneysmart.gov.au - Comprehensive insurance</sup>

Yes. Although it pays to read your Product Disclosure Statement (PDS) so that you’ll know which events are covered, most Comprehensive policies will cover the costs if your car gets stolen or someone vandalises it. 

This can be especially important since car theft is more common in Australia than you might think—from the 1st of July 2020 to the 30th of June 2021, there were 47,803 registered vehicles stolen in Australia¹. 

<sup>Source:
1. carsafe - Theft Watch</sup>

This can vary from policy to policy. Again, the Product Disclosure Statement (PDS) will outline the specific events that are insured by the policy. 

With this in mind, a Comprehensive Car insurance policy may cover you for damage¹ caused by: 

• Storms 
• Floods 
• Fire 
• Hail 
• Rockfalls 
• Stray animals 
• Potholes

Your policy might not be limited to just these events, either. It could also cover you for damage caused by trees or falling branches, or collisions with stationary objects, such as utility poles. If you have concerns about whether or not a specific incident is covered—and it is not mentioned by the PDS—it’s best to contact the insurer and ask them directly. 

<sup>Source:
1. Budget Direct - What car insurance covers</sup>

When shopping for a Comprehensive Car Insurance quote, be on the lookout for exclusions. In many cases, exclusions to Comprehensive Car Insurance policies are common sense things like: 

• Driving under the influence: Driving over the legal limit will get you a big fat “denied” stamp on your insurance claim, no matter who your insurer is¹. 
• Driving an overloaded vehicle: Driving a car with more passengers or weight than it can legally hold is typically excluded. If you’re planning on towing a trailer or caravan, make sure you know your vehicle’s towing capacity before you take off. 
• Unlicensed drivers or unregistered vehicles: If you don’t have a valid licence, or your licence has expired, you shouldn’t be behind the wheel. Period. Same goes with a vehicle with no rego. Like drink driving, this is illegal and usually won’t be covered by any insurer². 

Other exclusions may apply to your vehicle and its condition. Exclusions in this category include: 

• Modifications: Modifying your car can increase the price of your insurance policy. Failing to disclose modifications to your insurer can result in a claim being refused. 
• General wear and tear: Car Insurance is there to help you in unexpected circumstances, like a car crash. Your car deteriorating and having issues over time is expected, which means it generally isn’t covered. 
• Breakdowns: This one surprises some people. A lot of Car Insurance won’t cover you if your car breaks down. However, many insurers will offer the option of adding roadside assistance to help you with some basics to get back on the road if your car breaks down. 

There are other exclusions that might apply to your policy – in fact the exclusions section of your policy will likely be pages long. But grab a cuppa and read it all, because you’re ultimately responsible for understanding the Product Disclosure Statement, which outlines the specifics of your policy. 

<sup>Sources:
1. DrinkWise - Safe drink driving? There’s no such thing.
2. VicRoads - Penalties</sup>

Generally speaking, Comprehensive insurance costs more than other types of car insurance.  This is because it covers your vehicle for a wider range of incidents than third party cover. 

Of course, a range of factors also make up the cost of your policy. Insurers use complicated algorithms that are impossible to debunk completely, but we can share some of the common factors that could come into play. These include¹: 

• Your age: Sorry, young drivers. If you’re under 25, you’ll likely pay more for Car Insurance. On the flip side, you could save money by restricting drivers under a certain age from your policy. 
• Your driving record: Insurance companies figure that people who have never been in an accident are less likely to do so in the future (makes sense, right?). The opposite is also true – so if you’re missing points on your licence or have a history of collisions, expect to pay more. 
• Your vehicle: Certain cars are considered less safe to drive, or are more expensive to fix. Usually, these cars are also more expensive to insure. Modifications to your vehicle may also bump up the premium. What you use your vehicle for can also come into play. If you rarely use your car, you might pay less. If you use your car daily or to conduct business you may find yourself paying more. 
• Your address: You could pay more or less depending on where you live, and where your car is parked during the day or stored overnight. If your car will spend a lot of time in a neighbourhood with more crime, or in a high-risk area for bushfires, you may pay more. 
• Your excess: Excess is the amount you pay to make a claim on your policy. Some insurers put the excess on a sliding scale, where you can choose to pay a higher premium to have a lower excess in the event of a claim, or by choosing to increase the excess you could pay less per month. 

While some of these factors might be out of your control, there are things you can do that could lower your premium. Other than getting older, keeping accident-free is the best way to help keep your monthly costs lower. 

<sup>Source:
1. moneysmart.gov.au - Choose car insurance</sup>

This depends on your insurance provider and the terms of your cover. With that being said, it is quite common ^{1, 2} for car insurance—including comprehensive car insurance—to let you list two or more people on a policy. 

In these cases, the person who drives the car the most often will usually be regarded as its regular driver. Their driving record might also be used to calculate the insurance premium. 

Insurers can also differ as to whether they cover unlisted drivers. Some insurers may cover the damages if someone who isn’t covered by your policy drives your car and ends up in an accident. But this is typically restricted to certain conditions³ (e.g. if the driver is under 25) and you will usually need to pay an unlisted driver excess. 

<sup>Sources:
1. Budget Direct - Insuring your car
2. pd.com.au - Car FAQ 
3. Virgin Money - Car Insurance Premium, Excess and Discount Guide, p7</sup>

While many insurers offer coverage for learner drivers on Comprehensive Car insurance, this ultimately depends on the specific policy’s terms and conditions. 

You might also choose to get coverage in one of the following ways¹:  

• If you are driving someone else’s car: they might be able to add you as a listed driver on their car insurance policy. This can help cover you for damages if you get into an accident while driving their car. 
• If you own your own car: you can apply for comprehensive car insurance with an insurer who offers cover for learner drivers. You will usually need to be the primary driver of the vehicle in such cases.  

<sup>Source:
1. Budget Direct - Insuring your car</sup>

This depends on the terms and conditions of your Comprehensive insurance policy. What gets covered and how much gets covered will usually be detailed in the Product Disclosure Statement (PDS), too. 

Some policies ^{1, 2} will define your personal effects as items which are designed to be worn and carried and so will be included in your policy, items like: jewellery, mobile phones, clothing —so long as they’re inside your car when they get damaged or stolen. Things like cheques, money and credit cards aren’t usually covered, so be sure to keep them safe! 

<sup>Sources:
1. Virgin Money - Virgin Car Inusrance Price Promise, p3
2. Budget Direct - Car Insurance PDS, p2</sup>

First of all, whether the insurer pays for a hire car at all will depend on whether you have taken out a policy (or the necessary extras) to cover this. 

Even then, there will usually be some kinds of restrictions in place. It’s unfortunate, but very few insurers are going to let you drive a Ferrari around while you wait for your car to be repaired or replaced! 

Instead, one of the following ^{1, 2} may happen:

• The insurer will select a hire car: that meets your needs, and pay for its daily costs until your car is repaired or your claim is paid out, whichever comes first.
• They will allow you to select a hire car: and reimburse you for the daily costs of a car that meets your needs until your car is repaired, or the claim is paid out, whichever comes first. There will usually be a limit on how much they pay daily, so again, probably no Ferrari.

However, the way this process unfolds will depend on your insurer, so be sure to read the Product Disclosure Statement (PDS) for your policy so you can understand when you’ll be eligible for a hire car and how the insurer will provide one. 

<sup>Sources:
1. Virgin Money - Virgin Car Inusrance Price Promise, p34
2. Budget Direct - Car Insurance PDS, p8</sup>