Because every Australian household is different, there is no single car insurance policy that will be the best choice for everybody. To get the best car insurance policy for you, it’s important to compare different quotes and consider which offer may best suit your needs.
The cost of your car insurance quote can depend on a wide variety of different factors, starting with your car. Generally, newer and more expensive cars are more likely to have higher insurance costs. That said, older used cars can also cost a bit to insure, as these vehicles are considered more likely to be written off following an accident or a breakdown.
Other factors can include how often and how far you drive, where your car is parked when you’re not using it, your own personal driving history, and much more.
It’s always important to compare apples with apples, and to compare car insurance policies with policies that provide similar cover.
The three main types of car insurance policies are:
You may be able to choose between insuring your car up to a specific agreed value, or to its current market value.
Choosing the market value means that if your car is written off, you’ll be covered up to the current market value for a car of the same make, model and age that has driven a similar number of kilometres. This could help to make the car insurance quote a little cheaper, as cars often depreciate over time, so you’d likely receive less than what you originally paid for the vehicle as a settlement. However, this could make it harder to afford a more up to date replacement vehicle.
Insuring your car for an agreed value can help to make sure your insurance payout is large enough to afford a replacement car if yours is written off. However, selecting a higher value will push up the price of your premium. You could also select a lower value and in turn reduce the cost of your premium, but you risk being underinsured when you may need it.
When you make a claim on your car insurance, such as when your car is damaged after an accident, you’ll also need to contribute to covering the cost of the repairs. This contribution is called your “excess” because the insurance will cover repairs in excess of this amount.
For example, if the mechanic quotes a price of $1000 to repair your car, and your excess is $400, you’ll have to pay the first $400 and the insurer will pay the remaining $600.
Generally, raising your excess can make your car insurance quote cheaper, but you’ll need to pay more out of your own pocket if you need to make a claim. On the flip side, a lower excess could save you a little money when making a claim, but you’ll likely pay more for your insurance premium.
Keep in mind that you may need to pay an extra excess in some situations, such as if the driver is under 25, or has lost their license in the past.
While some insurers may charge higher quotes, they may also offer additional value for money in the form of extra features and benefits.
These could include:
Generally, the more features, benefits and other bells and whistles are included in a car insurance policy, the higher the quote for the premium.
Once you have a good idea of what you’re looking for in a car insurance policy, you can start comparing offers and quotes from different insurers.
Remember to not only compare the potential cost of the premium, but the level of value you may receive from the insurer to work out which quote may be best for you.
If you’re comparing car insurance policies, the comparison table below displays some of the policies currently available on RateCity for a 30-39 year old male seeking comprehensive cover in NSW without cover for an extra driver under 25. Please note the table is sorted by Canstar Star Rating (highest to lowest) followed by provider name (alphabetical) and features links direct to the providers’ websites. Consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD), before making a purchase decision. Contact the product issuer directly for a copy of the PDS and TMD. Use RateCity's car insurance comparison selector to view a wider range of policies. RateCity may earn a fee for referrals
Disclaimer
This article is over two years old, last updated on September 21, 2022. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent car insurance articles.
This article was reviewed by Peter Terlato before it was published as part of RateCity's Fact Check process.
