Comprehensive Car Insurance

There are four types of car insurance in Australia, but only the first is mandatory:

As the highest level of car insurance you can get in Australia, comprehensive car insurance offers the greatest amount of protection for your car.

It can mean you have greater peace of mind, whether you’re driving or another listed driver is, since damage to your car and other people’s property will be covered, even if you’re at fault.

Some insurers might even extend the cover to unlisted drivers of your car, although they might set some conditions for these. So, if you lend your car to a friend, anything that happens while they’re driving could be covered too.

Like other types of car insurance, comprehensive car insurance also comes with a range of optional extras. These could help you tailor your insurance to your driving lifestyle or preferences. For instance, if you’re worried about being way out of pocket for a damaged window or windscreen, reduced window glass excess could ease that anxiety.

At the end of the day, you’ll need to weigh up whether comprehensive car insurance is worth it to you. You might like to think about if you could afford to replace or repair your car on any given day, and if you could do without a personal vehicle.

This depends on your car and your priorities.

Some people may prefer to only insure their old car for third-party property damage, as their car’s market value isn’t all that much. Instead, they may be more worried about being able to pay for anyone else’s property they accidentally damage.

However, some old cars can be worth a lot. Think classic and vintage models. In this instance, opting for comprehensive insurance with an agreed value, or dedicated classic or luxury car insurance, could be worthwhile.

Ultimately, the decision is up to you. You might like to consider whether you could reasonably repair or replace your car, or just go without for a while, if it were to be damaged or written off.

As with other types of car insurance, your comprehensive policy may come with an excess: an amount you’ll generally need to pay when making a claim.

The basic excess is the amount you pay whenever you claim. You’ll have picked how much this is when you bought your policy.

Sometimes, a policy has additional excesses for specific situations, so you might sometimes have multiple excesses to pay under the one claim.

Additional excesses might include:

• age excess (if you or the listed driver needing to make a claim is under a certain age, like 25)
• inexperienced driver excess (if the driver of your car hasn’t had their full or open Australian license for all that long)
• unlisted driver excess (if the driver isn’t listed in your car insurance)
• kilometres exceeded excess (if you’ve agreed to only drive a certain number of kilometres but you’ve ended up driving more).

When it comes to your basic excess, you at least have some leeway as to what this amount is. Part of the figure relies on which state you live in, but you could also ask your insurer to raise or lower your excess, and thereby change your premium. A lower excess can mean a higher premium and vice versa.

You might want to keep in mind that while a lower premium can look good on paper, needing to pay a higher excess when you claim could sting. So to help you decide, you might want to think about how likely you are to claim. For instance, are you driving your car regularly? What has your claim history, or that of any other listed drivers, been like? Are you able to park your car somewhere secure and safe all the time?

This depends on your insurance provider and the terms of your cover. That being said, it’s quite common 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 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 you’ll usually need to pay an unlisted driver excess.

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 ways:

• If you’re 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.

The number one rule of being in an accident is to stop and assist. You can worry about insurance a little later.

If any property has been damaged, including your car or other cars, you’ll need to report the accident to the closest police station. Be aware that if no one is injured, the police may choose not to attend the accident.

Once everyone has been helped, you’ll need to exchange details with anyone else involved in the accident – this is a legal requirement. This means giving your details to other drivers or the owners of any property damaged. Your details should include your name, address, and car registration.

While you’ve still got your pen handy or your notes app open on your phone, you can also record details of the accident. Things like the time, date, location, weather conditions, what speed you were travelling, and the names and contact details of any witnesses might be helpful. Photos or diagrams can also prove useful for the police and your insurer.

The next step is to give your insurer the heads up. Even if you don’t intend to make a claim, your policy may require you to notify them of any accident – this is a duty of disclosure.

Depending on your insurer, you may be able to make your claim over the phone or online. Some even offer 24/7 service – after all, accidents don’t stick to business hours.

To get your claim rolling, have all that information you collected handy, like when and where it happened, and what was damaged. You can then follow the prompts to submit your claim.

Once your claim is lodged, the ball is in your insurer’s court. They’ll keep you updated on how it’s progressing. If your insurer follows the General Insurance Code of Practice, you should hear back about the outcome of your claim within 10 business days.

If your claim is successful, your insurer will organise assessing and repairing your car. Be aware that you may still have excesses to pay, whether you’re at fault or not.