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Compare Car Insurance for New Cars
Written by
Kervin Mathew
Edited by
Ellie Garran
Reviewed by
Adrian BennettWe compare many well-known car insurers
iSelect does not compare all providers in the market or all policies offered by our partners in your area. Not all policies or special offers are available to all customers. Learn more.
What is new car insurance?
Nothing can beat that brand new car smell, can it? Granted, your new car’s not always going to stay new, but you can at least try to keep it that way – from a spray bottle of that ‘new car’ fragrance to the right kind of car insurance! So, to put it simply, new car insurance is the insurance you get to cover a brand-new car.
How can I protect my new car?
If you want to protect your new car, it only seems right that you get the kind of car insurance that does. While third-party cover can protect you from financial liability for accidental damage you cause to other people’s property, comprehensive car insurance is a great option if you want maximum protection for your car.
What types of insurance can I get for a new car?
There are several options to consider when choosing car insurance for a new car. Here’s a helpful breakdown to help you make your decision.
Comprehensive
car insurance
The highest level of cover you can get – it covers damage to yours and other people’s property, even if you’re at fault.
Offers complete protection
Popular among iSelect customers1Customers who used iSelect’s online comparison service between September 2023 and September 2024
The most expensive type of car insurance
Third-party
fire and theft
Covers your car if it’s damaged in a fire or stolen, along with damage to other people’s property.
Cheaper than comprehensive insurance
Partial cover for your own car
Doesn’t cover accidental damage to your car
Doesn’t cover flood damage
Third-party
property
A basic level of car insurance that covers accidental damage, but only to other people’s property.
Possibly the cheapest type of car insurance
Covers accidental third-party damage
Leaves your own car unprotected
Compulsory third party (CTP)*
A minimum requirement for anyone to drive a car in Australia. It covers liability for people harmed in an accident.
Covers personal injury and death
Included in your car’s rego (except in NSW)
Doesn’t cover property damage
*iSelect does not compare compulsory third-party policies.
What is new-for-old car insurance and how does it work?
New-for-old car insurance isn’t a type of car insurance. Rather, it’s a benefit you get with a comprehensive car insurance policy. It might even go by other names such as ‘new car replacement’ or similar. This benefit is particularly helpful if you rely on your car to carry out your day-to-day activities.
Here’s a breakdown of what ‘new-for-old car insurance’ does and how it works.
Why get new-for-old car insurance?
Imagine you’re in the unfortunate position of having a car written off or stolen within two or three years of purchasing it. If your car insurance policy at the time comes with new-for-old car replacement cover, your insurer would be able to replace it with a new car of the same make, model and specification.
Can I get paid out instead?
If a car of the same make, model and specification isn’t available, the insurer can decide to provide you with a similar car or pay you out for your purchase price. All in all, how’s that for a reset button!
Are there any conditions for new-for-old car insurance?
Yes. This benefit might depend on whether:
- your new car (or demo car) is purchased from a licensed motor vehicle dealer
- you or the dealer are the first registered owner
- the car’s odometer showed less than a specific distance when you purchased it
- you’ve travelled no more than a certain distance in the car at the time it’s written off or stolen
- the car is written off or stolen within a specific time period of you purchasing it.
The conditions that come with new car replacement will be outlined in the policy’s product disclosure statement (PDS). So, take the time to understand any specifics regarding this benefit and when you’ll be covered.
Helpful tip
Consider the cost of new-for-old car insurance cover
Though some insurers include new car replacement cover at no extra cost, that doesn’t mean it’s not reflected in your premiums. Insurers might factor the benefit into their policy’s pricing. Or they might offer the benefit as an optional extra for which you can choose to pay more.
That’s why it pays to compare car insurance policies before you buy a new car, so you know you’re getting a deal that meets your needs and fits into your budget.
Adrian Bennett
General Manager for General Insurance
How much does it cost to insure a new car?
First off, a new car could cost more to insure because of its higher market value. However, there are other factors that can feed into your premium, such as your driving history, your level of cover, where you live, your age, your gender, and more.
Take a look at these graphs to get an idea of how much iSelect customers paid for comprehensive car insurance in 2023–24 based on their age and where they live.
Should I go with agreed value or market value cover for a new car?
The cost of car insurance is closely tied to the value of the vehicle being insured. A pricier car tends to attract a higher premium. However, as time goes by, the value of your car is bound to depreciate. That’s where the question of insuring for market value versus agreed value comes in.
Choosing market value cover
Say you have your car insured for its market value and it’s written off or stolen. Your insurer will pay you an amount that matches how much your car would sell on the open market at the time of the write-off or theft.2For more information, see Moneysmart.gov.au – Choosing car insurance
Choosing agreed value cover
Agreed value cover holds your insurer to paying you an agreed amount if your car ends up as a total loss. Generally, the agreed value is higher than your car’s market value at any given time. This option can be more expensive as a result.
So, what’s the verdict?
Ultimately, it’s a balancing act between the value you want to get from your car insurance and how much you’re willing to pay for it.
Market value cover gets you lower premiums, but your payout in the event of a total loss decreases with time.
Agreed value cover, though it pushes up insurance costs, helps provide you with financial protection from your asset depreciating.
Why buy with iSelect?
We’ve been helping Australians save time, effort, and money for over 25 years.
Almost 2 million online car insurance comparisons made
Since 2018, iSelect has helped Aussies compare car insurance almost 2 million times.
Compare a range of policies online at your convenience
A better-value car insurance policy could be only a click away. Compare a range of policies online in a matter of minutes.
We tell it how it is
Sometimes a good deal just can’t be beat. If we can’t offer you a better-value policy, we’ll say so.
The same price with no mark-ups
We don’t mark up the price of our policies, so you’ll pay the same as buying direct from the insurer.*
*T&Cs apply
FOUND THE SAME POLICY CHEAPER?
WE’LL GIVE YOU A $100 E-GIFT CARD
When it comes to comprehensive car insurance, we’re confident that you’ll get the same price through iSelect as going direct to the insurer.
So, if within 30 days after buying with us, you find the identical policy (commencing within two days of the quote) with a lower annual premium from the same insurer, we’ll give you a $100 e-gift card.*
How to buy with iSelect
Get acquainted
Tell us about your car and what you’re looking for, and we’ll get to work.
Explore your options
We’ll show you policies side by side, including their monthly premiums, inclusions, and exclusions, along with any optional extras.
Pick your favourite
You’re in control. Let us know which policy you want to buy, and we’ll set you up then and there.
Say goodbye to your old policy
All that’s left to do is let your previous insurer know that it’s over between you and them.
Frequently asked questions
When do I purchase car insurance for a new car?
If you have an existing policy on another car you already own, your new car might be covered under the existing policy for about a week to 30 days even before you add it to the policy.
That said, it’s better to be prepared and have a policy locked in before you officially take ownership of your vehicle. You can purchase your car insurance policy and activate it on the same day. Your insurer may allow you to choose a start date for your policy – which could be the day you take delivery of your new car.
What details do I need to give an insurer before I buy car insurance?
If you know which car you’re buying, an insurer may be able to provide you with a preliminary quote. The more details you have, the more accurate your quote is going to be. So, try to provide your insurer with the car’s:
- production year
- make and model
- colour, modifications and accessories
- registration, if available.
If you’re still undecided on the car you’re buying but you’ve shortlisted a few, no worries – you can compare insurance premiums for each make and model to help guide your decision.
Do all insurers offer new-for-old car insurance?
It depends on the insurer and the level of cover. New-for-old car insurance can work differently among insurers that do offer the benefit – especially when it comes to odometer limits and the period within which your car becomes a total loss. Some insurers may even offer lifetime new car replacement, which removes the conditions of time from purchase and distance travelled.
Before you purchase a policy, be sure read the product disclosure statement (PDS) so you understand its new car replacement option, any other benefits that come with, and how they work.
Can I get car insurance through a car dealer?
Though it’s not your typical car insurance policy, you might be able to get something called ‘add-on insurance’ from a car dealer. Add-on insurance can cover breakdowns, damage to your tyres and rims, or payments if you’re unable to repay your car finance.
But add-on insurance has its downsides: It’s more expensive, comes with low payouts for the premiums you pay, and overall may not offer good value for money. Plus, add-on insurance premiums make up part of your car loan’s principal, which means interest charges are higher than they need to be.
Instead, a true-blue car insurance policy from an insurer is likely to offer you wider cover and better value – all at a better price. Another advantage is that you’ll have more providers to choose from and you have comparison websites like iSelect to help you find and compare policies.
Get started on comparing car insurance policies!
Save time and effort by comparing a range of car insurance quotes with iSelect
iSelect General Pty Ltd (ABN 90 131 798 126. AFSL 334115) has partnered with Compare the Market (ABN 83 117 323 378. AFSL 422926) to compare a range of car insurers and policies. Not all providers in the market or all policies offered by the partners are compared and not all policies or special offers are available to all customers.
A number of our participating general insurance brands are arranged by Auto & General Services Pty Ltd ACN 003 617 909 on behalf of Auto & General Insurance Company Limited 111 586 353, both of which are related entities of iSelect Limited. Our relationship with those companies does not impact the integrity of our comparison service. Click here to view iSelect’s range of providers.
Any advice provided by iSelect is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice iSelect gives you, having regard to your personal situation, before acting on iSelect’s advice or purchasing any policy. You should consider iSelect’s Financial Services Guide which provides information about our services and your rights as a client of iSelect. iSelect receives commission for each policy sold that is a percentage of the premium or a flat fee. Ask us for more details before we provide you with any services.