Compare Car Insurance Policies Side-By-Side

Comprehensive car insurance offers peace of mind to vehicle owners. Also known as full or complete cover, it means you can be covered for a range of circumstances, including:

• Repair or payment of the insured value of your vehicle for events including theft, collision, fire, malicious damage and weather-related damage
• Repair or payment of the value of other vehicles that are damaged by your vehicle in an accident, and damage to property up to the policy limits

Some companies offer a variety of optional extras as well, ranging from windscreen protection, to use of hire cars. That said, it’s important to always read the Product Disclosure Statement (PDS) of your policy to get a better understanding of policy inclusions, limitations and exclusions.

Third party insurance is the minimum car insurance product which most car insurers offer. There are three types available, which are:

• Compulsory third party (CTP): Covers death and injury to people if you’re involved in an accident. Each state and territory has different rules regarding this cover, so it’s important you check with your local transport authority for further information
• Third party property: Covers repair costs for property damage caused by your car up to the limits of the policy
• Third party property, fire, and theft: Covers damage to other people’s property and provides cover for theft of your vehicle, or damage to your vehicle caused by fire up to the limits of the policy

Ensure you review the Product Disclosure Statement for policy inclusions, limitations and exclusions.

When you sign up for car insurance, you’re often asked whether you want to insure your car for an agreed value or for market value. This is the monetary figure you’ll receive from your insurer should your car be written-off. Market value takes into consideration depreciation and wear and tear, making it an accurate representation of the amount you would have received if you’d sold your car. Agreed value is an amount you and the insurer have agreed upon at the start of your policy for the period of insurance. In most cases, the figure may still reduce to account for depreciation at time of renewal. Ensure you review the Product Disclosure Statement for policy inclusions, limitations and exclusions.

While insurers calculate premiums differently, there are a number of things you can do which may reduce the cost of your car insurance premiums. These include but are not limited to:

• Parking your car in secure parking (such as in a lock-up garage) if possible, to reduce the risk of theft, vandalism, flood or storm damage claims 
• Buying a car fitted with an immobiliser or a security alarm or having them installed. Along with other technology such as a GPS tracking device it may reduce the risk of theft and damage claims 
• Driving less often. For example, catching public transport to work. Some insurers may offer lower premiums for drivers who don’t use their car frequently
• Limiting the number of drivers nominated on your policy, especially if they’re under 25. Fewer drivers means less risk of a claim for your insurer
• Choosing a higher excess, which means you’re taking on a larger part of the risk from your insurer
• Choosing to insure for market value or a lower agreed value, which will reduce the amount your insurer has to pay-out should your car be written-off

If you’ve been insured by your provider for an extended period of time and haven’t made any claims during that period, you may be eligible for a no-claims discount. This discount is usually applied to your premium, partly as a reward for not making a claim and partly out of loyalty for you staying with your provider. Eligibility for the discount can vary depending on your insurance provider and their criteria. When reviewing policies and providers, it might be worth finding out about their no-claims discount and discovering the length of time that has to pass in order for you to be eligible. In some cases, insurance providers may carry over your no-claims discount from another provider. In some cases, a provider may not offer a no-claims discount, and will instead offer a reduced premium based on other risk related information.

Ensure you review the Product Disclosure Statement for policy inclusions, limitations and exclusions.

Whether your car insurance covers unlisted drivers ultimately depends upon your individual policy. It’s important you check with your provider to determine how an unlisted driver is taken into account for your policy. In some cases, it may increase the cost of your excess should they be driving when an accident occurs. In other cases, it could result in the refusal of a claim. Ensure you review your insurer’s Product Disclosure Statement for information about policy coverage, limitations and exclusions.

Just like some other forms of insurance, such as travel or home and contents insurance, car insurance can have an excess payment. It’s the charge you pay after making a claim in order to receive the benefits that your policy entitles you to (such as repair or replacement of your vehicle). You usually only pay an excess charge if you’re at fault or are unable to identify another party at fault. By paying an excess, you’re taking on a small part of the financial risk (which helps to reduce your premiums). If you’re able to identify a third party who is at fault, your insurance provider will then go to the third party to recover the costs – or their insurance provider. Ensure you review the Product Disclosure Statement for policy inclusions, limitations and exclusions.

How you make a claim depends upon your insurance provider and the options they’ve made available to you. Some providers allow you to start the claims process online or via their app, while others require you to contact them over the phone. Important details that your provider may request (if feasible) when making a claim can include but may not be limited to:

• The details of any other party or parties involved, including name, phone number, vehicle registration, address, license number and insurance details
• The names and phone numbers of any witnesses
• Photos of the accident scene and damage to the vehicles involved, if possible
• Any reports from police or paramedics, if they were required

Typically, not without asking your insurer first.  

If a family member drives your car and becomes involved in an accident, and they aren’t listed on your policy as a driver, you could face a higher excess fee if they’re at fault or they may not be covered at all. 

Some policies also have age restrictions, typically regarding drivers under the age of 25. So, if your policy has an age restriction and your child or family member who is under 25 years old, drives your car, and is involved in an accident, they won’t be covered. If your policy doesn’t have an age restriction, then they may be covered, but you should watch out for any additional age-related excesses which may be applied.  

If you haven’t been listed on the insurance policy as a driver and have an accident, then whoever owns the car will most likely face a higher excess fee on top of their usual excess fee or the car may not be covered at all. 

With that in mind, it’s important to remember that every registered car is required to have a basic level of cover, which is known as Compulsory Third Party (CTP) insurance (also known as green slip insurance in New South Wales). So, if you drive a family member’s car and you’re involved in an accident that results in any injury (even death) of a third party, then you would be covered for the related injuries. With that in mind, make sure you are always taking care and driving safely on the roads. 

As always, ask the insurer about any limits or exclusions on the policy to avoid any confusion. 

No, insurers don’t typically provide cover for mechanical costs and maintenance costs. Regular servicing is recommended for any motor vehicle.  

If you notice signs of wear and tear or rust and rot on your car, it might mean it’s time for some TLC or paying a qualified repairer or mechanic to keep your car in great condition. 

Firstly, contact the police and provide details of the theft. They will require some personal details as well. Once that’s done, the police will do what they can to locate your car. 

Then you can contact your insurer to make a claim. Both Third Party Fire & Theft and Comprehensive car insurance should cover you if your car is stolen. 

If your car is stolen and isn’t located and recovered, then your insurer can replace your car or pay you the amount for which the car is insured – minus any excess you owe. 

If someone tries to steal your car and fails, then your claim may depend on the type of policy you have. For example, if you have Third Party Fire & Theft cover, then any damage to the car might not actually be covered if the thief doesn’t successfully steal it. 

Although if you have a Comprehensive policy, then any damage is typically covered, no matter whether or not the vehicle is stolen. 

If cost of living increases, then it’s possible that your car insurance premiums may increase, but this also depends on your insurer and your particular situation. 

There are dozens of factors that determine insurance premiums and inflation is only one of them.

Whether you’re at-fault, or even if you aren’t, it’s possible that premiums could increase. In these situations, you might consider comparing options with iSelect to see if you can find a more competitive policy.^*

It would be nice to see our loyalty rewarded and have our premiums decrease as the years go by, but there are lots of factors that come into play, especially in a period of inflation where the cost of living continues to rise for the broader population. 

Insurers typically adjust premiums to reflect the likelihood of policyholders making a claim. For example, if you live in an area that’s received many claims at once due to a natural disaster such as a flood, or it’s considered a high-risk zone, then you could be classified as a bigger risk to your insurer and therefore be required to pay a higher premium. 

If you’ve recently been involved in an accident, then this could affect your premiums too.   

Comparing the differences between policy features, benefits and limitations is key to improving your knowledge of the insurance market. If you regularly compare policies, then you can increase the likelihood of finding a policy that better suits your budget and needs.