*iSelect does not compare all car insurers or policies in the market and not all policies or special offers are available at all times, through all channels or in all areas. Not all policies available from our providers are compared by iSelect and due to commercial arrangements and customer circumstances, not all policies compared by iSelect are available to all customers. Learn more.
Car Insurance helps cover you for expenses incurred as the result of a car accident, fire, or theft. The extent of cover will depend on your insurer and type of policy.
Coverage can range from Compulsory Third-Party, which generally covers injury and death to other parties (but will not cover any damage to property, including any cars involved in the accident), right up to Comprehensive, which can help cover damage to your own car and third party property in the event of an accident.
There are four main types of Car Insurance in Australia:
It’s important to remember that CTP Insurance does not provide coverage for any damage made to your or any third-party vehicle or property.
CTP Insurance varies from state to state. However, it will generally provide cover for any third parties who may be injured or killed in an accident involving your vehicle.
CTP Insurance (or ‘Green Slip’ as it’s called in NSW) is Compulsory Third-Party Insurance. This can be included in the vehicle’s registration, depending in which state the vehicle is registered.
It only covers claims for injury or death caused in an accident. It’s important to note that it doesn’t cover any costs related to third party damage, meaning that if you hit another vehicle, you are likely to foot the bill. However, a Third-Party Property policy (the next level up in car insurance) could help cover some of these costs.
Comprehensive Car Insurance is the highest level of Car Insurance cover. It can cover you for accidental damage to other people’s property and vehicles as well as damage to your own vehicle that’s caused by an accident, fire, or theft.
Car Insurance is priced according to the risk the insurer is taking on. Factors like your age, driving record, home address and whether your car is parked in a garage or on the street can all affect the risk that the provider is taking and therefore, the cost of your Car Insurance premiums.
When it comes to car insurance, you get what you pay for. A very basic policy – like CTP – will be understandably cheaper than a Comprehensive Policy. Basically, the more a policy covers, the more it will cost. So for example, Third Party Property and Theft generally costs more than Third Party Property, because it includes extra cover.
While price is understandably important, there’s many things to consider. Such as what you definitely need cover for, and what you could go without to save you some cash. And keep in mind, a cheaper policy could end up costing you more when it comes time to make a claim.
There’s no such thing as the ‘best’ Car Insurance. At iSelect, we can help you compare a range of different policies and providers to help you look for a suitable policy.*
A nominated driver is a driver of your car that you have specified, or named, on your policy.
If a driver is not listed on the policy, you will more than likely be subject to an additional excess, or you may not be covered in the event that you need to make a claim.
Refer to your Product Disclosure Statement (PDS) to better understand the exclusions, limitations and excesses applicable in your policy.
This will depend on your insurer, and what their rules are around who should be listed, but as a guide, you should have any regular drivers of your vehicle listed on your policy.
If you’re unsure, review your policy documents and ask your insurer to see who needs to be listed on your policy.
With an agreed value insurance policy, the insurer and insured come to an agreement on what the payout value of the car is in the event of a write-off, or total loss, when a policy is taken out.
With a market value policy, in the event of a total loss, the insurance company will work out the current market value of the car based on factors such as (but not limited to) the car’s condition, odometer reading, make, model and age which generally determines the payout figure.
Agreed value policies are generally more expensive as you are able to set the value of the vehicle for the policy period.
Market value insurance policies can be cheaper to take out as the value of the vehicle will be determined at the time of a claim. Remember that making a claim can lead to an increase in your premiums.
That depends. Some companies will not insure the vehicle in the event there is existing hail damage, while others may choose to insure it with the existing damage.
These days, paying for your Car Insurance premium is a pretty easy process. You may be able to pay online, over the phone, or via direct debit.
Comprehensive Car Insurance provides the broadest range of cover. It can help cover repair or replacement costs for your car in an accident (even when you are at fault).
It is important to remember these are two very different types of insurance.
Compulsory Third-Party (CTP) Car Insurance is compulsory and covers any claims for injury or death caused as a result of your driving. It does not provide cover for any damage to other people’s property, or your own. So, if you hit a Ferrari when you only have CTP Insurance, you’ll likely be liable to pay for those damages out of your own pocket. Ouch!
Comprehensive Car Insurance does not cover injury or death, but it can help provide cover for damage to vehicles and property (either your own or someone else’s), up to the limits and conditions of the policy.
As with any insurance policy, there are exclusions with Comprehensive Car Insurance.
Some are obvious, such as illegal driving activities, licensing status issues, or unregistered vehicles. Others are more unexpected, like general wear and tear and breakdown, neither of which is generally covered.
Also, failing to disclose any modifications to your vehicle can result in claims being denied. You may consider checking for full exclusions with individual providers before you take out a policy.
Depending on your insurer and level of cover, windscreen replacement can be covered in a Comprehensive Car Insurance policy. On the other hand, other insurers offer it as an optional extra. However, even if your policy covers windscreens, you may need to pay a basic excess to repair or replace it. This can also count against your claims history so be sure to check all your options.
If you write your car off or it is stolen and not recovered, a Comprehensive policy could pay you out the current market value of your vehicle. If your car is insured for an agreed value, then you may be paid out the agreed amount. If your car is a total loss you will be paid out market or agreed value minus any deductions listed on your Product Disclosure Statement (PDS).
Third-Party Fire & Theft (TPF&T) covers accidental damage to other people’s property or vehicles in the event where you are involved in an at fault incident, as well as cover for loss or damage to your vehicle and property by fire or theft.
Third-Party Property (TPP) covers accidental damage to other people’s property or vehicles in the event you’re involved in an at fault incident.
However, it doesn’t cover your own vehicle or property, so if your car is stolen, involved in an accident, or left out in a storm and is damaged, any repairs or replacement costs will likely need to be covered by you personally.
When you take out a Car Insurance policy, it will probably have an ‘excess’. If you make a claim, an insurance excess is the amount you’ll have to pay towards the costs of the claim, and your insurer will make up the difference, subject to the limits of your policy.
The excess1 is typically applied on a per-claim basis including storm, theft and accident. Typically, the only exemption that exists for not paying an excess is when the driver is not at fault. You may want to read your policy's Product Disclosure Statement (PDS) to know when you do and don’t need to pay an excess in the event of a claim.
When you take out a policy you may be able to opt for a higher or lower excess. Usually, a lower excess will mean you’ll pay a higher premium. However, there may be limitations to this if you are currently within a policy time frame.
You may want to check with your insurer and what it will mean for your policy if you want to change your excess.
Yes, most policies will include a higher excess for younger and less experienced drivers. This often applies to those under 25 and those who have been fully licensed for less than 2 years, but it can vary between insurers.
This varies between insurers, but in the event an unlisted driver is driving the insured vehicle in the event of an accident, an additional excess is usually charged.
If the accident was your fault, then you will pay the excess on your policy. In the event of a not at fault claim and your insurer is able to recoup the costs from the at fault party, you may not need to pay your excess.
When an excess is payable may vary from provider to provider, so you may want to consider checking your policy’s Product Disclosure Statement (PDS).
Yes, generally the excess still applies if your car is stolen.
Yes, you will have to pay the excess that you agreed to when you took out the policy. Generally, only a Comprehensive policy can cover hail damage.
The excess for a windscreen claim varies between insurers. Some insurers may offer you the option to reduce or waive the excess in the event you need to make a stand-alone windscreen claim, for an additional cost to your premium.
Yes, you will have to pay the basic excess that you agreed to when you took out the policy.
If your car is deemed a write-off, then you will still have to pay an excess, unless your insurer determines that you were clearly not at fault.
If a car has been classed as a ‘repairable write-off’ you must declare it when you apply for insurance and some insurance companies may offer you cover.
The classification of a ‘repairable write-off’ varies between states, so you may want to check before you buy such a car. You will need to provide detailed reports of the damage and repairs that have been carried out, plus the insurer may request an independent assessment of the vehicle.
Your licence and driving history are generally part of an insurer's questions set to determine if they will provide you with cover.
If you have previously had a licence suspension, your insurer will determine whether or not you’re insurable. Your premiums may be higher as a result of your suspension.
If your licence is currently suspended, some insurers may insure your car, but you will not be covered to drive it until your licence is reinstated.
Some insurers may also ask if another driver with a valid licence can be listed on the policy as the main driver.
Ensure you read through the Product Disclosure Statement (PDS) and discuss with your chosen insurer to understand how your driving history may impact your policy.
It depends on the make and model of the car and exactly how old it is, because insurance premiums are assessed according to risk (among other factors).
While older cars could be less valuable than newer ones, they may also be less safe than their modern counterparts or repairs may be more expensive because spare parts are harder to find.
If you let your Car Insurance lapse and you continue to drive, it's important to remember your vehicle won’t be insured.
If you cause any damage to your own or other people’s vehicles or property, you’ll be paying the bill out of your own pocket.
Ride-sharing services such as Uber may offer personal injury support as the result of an accident while you use your vehicle for ride-sharing, but if you want to protect your vehicle against any damages, you may want to consider keeping your own Comprehensive Car Insurance policy in place.
Check with your state or territory’s road authority to better understand the requirements of using your vehicle for a ride-sharing service.
Your current car insurer should have details about any previous claims that you have made, including the date and type of claim as well as the payout and details of the incidents.
You can get these details by contacting your insurer or by logging into your account on your insurer’s website.
Yes, some insurers will cover multiple cars under one policy, and you may also be able to take advantage of a multi-policy discount.
Most insurers will let you change your personal and payment details online, along with other things like excesses and optional extras on your policy. Some other details may require a phone call.
Typically, this can be done online or via a phone call. If you move to a higher or lower risk area, you may find your premium changing accordingly.
If you are not replacing your car, then you may need to cancel your policy from the date of sale.
If you are replacing it, then you may want to consider contacting your insurer to change your policy accordingly before you drive your new car away. Be aware that a different car will represent a different risk and as a result, this could affect your premium.
Your address is an important part of the equation when your insurer is assessing the premium of your policy. If you don’t keep your details up to date, your insurance might not be valid when you need it.
Yes, but you must advise your insurer and be prepared for a change of premium if the car is in a higher or a lower risk category.
When your policy is due to run out, you will receive a renewal notice from your insurer advising you of the premium and when it is due. Some insurers may automatically renew your policy unless you tell them otherwise.
A learner driver should be specified on your policy, which can be generally done online or via a phone call. They may attract an increased premium or a young/inexperienced driver excess.
You must provide full details of any modifications and accessories to your insurer. They will then assess whether they are prepared to insure you. You may want to check for insurance options before buying a modified car.
You should check with your insurer about specific usage, but as long as you are driving on a designated off-road track for personal or recreational purposes in a car made for off-roading, you may be covered under a Comprehensive policy with the option to pay an excess for off-roading. You may want to consider checking with your insurer to see if you’re covered for specific instances of off-road driving.
Generally, insurers rate classic cars on age, condition, and usage. Getting your car insured as a classic varies, so it’s important to tell your insurer the full story.
Making a Car Insurance claim is fairly straightforward these days, especially if you do it correctly. These things can help:
Your insurer should arrange to have the damage assessed and decide whether it is to be written off or repaired.
Once your insurer has all the details they need to process your claim, it generally can take up to 10 business days to be fully processed.
Insurers consider all the information that is given to them by all parties involved. They take all this information and either accept or reject your claim based on the evidence provided to them.
Under the General Insurance Code of Practice, insurers must advise you whether or not your claim is accepted or denied within 10 business days.
Yes, if you have Comprehensive cover, your insurer may be able to cover costs to repair any damage to your vehicle, but if you can’t provide details of the hit-and-run driver, then your insurer may treat it as an at fault claim.
If you’re able to track down the other driver, you may be able to recover the costs of any repairs from them. If they’re uninsured, you can still lodge a claim with your insurer and they may be able to provide you with cover up to a certain amount.
These days, it’s a pretty straightforward process. Many insurers allow you to cancel your Car Insurance online, or by phone. But before you cancel, consider having another policy ready to go if you’re still going to be driving your car!
As long as you’re up to date with your premium payments, you may not need to pay any cancellation fee. It’s best to read your policy’s Product Disclosure Statement first though, just to be sure.
If you cancel your policy within the cooling off period, or within 21 days of your policy renewal, then you may be entitled to a refund, as long as you haven’t made any claims in this period.
If you’ve paid for your Car Insurance premium in advance (such as an annual payment), and you choose to cancel your policy within the timeframe that’s already been paid for, your insurer may reimburse you for any payments you made ahead of the policy’s cancellation date.
If you don’t follow these guidelines, your insurer may issue you with a cancellation fee.