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. This will cover any person you might injure in an accident but 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, additionally can help 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, with the addition of cover for damage to your vehicle if you’re involved in a collision.

How much insurance you have is up to you. It’s important to remember that if you find yourself in a situation where you need to pay for damage to someone else’s car, taking out a Comprehensive Car Insurance policy could save you a lot of money in the event of an incident occurring (1).

• Theft and vandalism: Car theft is more common than you might think – from March 2019 to 2020, there were 60,165 registered vehicles stolen in Australia (2). If your car is stolen or vandalised, Comprehensive Car Insurance could replace or repair it.
• Third party property damage: If you damage someone else’s vehicle or property, you’ll be covered up to your policy’s limits.

Sources:
1. https://moneysmart.gov.au/glossary/comprehensive-insurance

2. https://carsafe.com.au/theft-watch

A range of factors will 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 include (1):

• 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 license 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.

Sources:
1. https://moneysmart.gov.au/car-insurance/choosing-car-insurance

When shopping for a Comprehensive insurance quote, be on the lookout for exclusions. In many cases, exclusions to Comprehensive Car Insurance 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 is (1).
• 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 license, or your license has expired, you shouldn’t be behind the wheel. Same goes with a vehicle with no rego. Like drink driving, this is illegal and usually won’t be covered by any insurer (2) .

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

• Modifications: Like we mentioned above, 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.

Sources:
1. https://drinkwise.org.au/drinking-and-you/is-there-such-a-thing-as-safe-drink-driving/#
2. https://www.vicroads.vic.gov.au/safety-and-road-rules/road-rules/penalties