Compare some of the best car insurance policies

The best car insurance policy will be different for every Australian. Depending on the car you’re driving, how you drive it, how much cover you want, and of course how much you’d like to pay, the best insurance policy could be very different from one household to the next.

There are four main types of car insurance to choose from:

• Compulsory Third Party (CTP) Car Insurance: Required to register your car, this policy only covers injuries to third parties.
• Third-Party Property Car Insurance: Covers damage to other cars and property.
• Third-Party Fire and Theft Car Insurance: Covers damage to third party property, as well as your own car if it is damaged by fire or stolen.
• Comprehensive Car Insurance: Covers third-party property, fire, theft, and also damage to your own car, even in an at-fault accident.

The best choice for you will depend on the level of cover you want, your personal risk tolerance, and your household budget.

For example, if money is tight or if your car’s value is low, you could consider sticking with only the required CTP insurance, as it’s the most likely to be one of the cheapest car insurance options. But if you want to be confident you’ll be covered in a wide variety of situations, and can afford it, a comprehensive insurance policy could be worth considering.

While a comprehensive car insurance policy may offer thorough coverage, you may find that you’ll be paying for more than you really need. Depending on your car, your lifestyle, and a whole host of other factors, it may be worth considering a third-party property or a property, fire and theft policy. You could also choose to stick to the minimum insurance of CTP.

Consider reading insurance reviews online and contacting family and friends for word-of-mouth advice on which car insurers may be worth your while.

Getting a better idea of the level of customer service an insurer provides, as well as how efficiently they handle claims, can make a big difference to your final decision.

Contact some insurers online, over the phone, or even by visiting a branch office.  They’ll ask you a series of questions about yourself and your car, including your car’s make, model, mileage and age, your typical driving habits, and where your car is garaged overnight.

Based on all of these factors and more, the insurers can offer an insurance quote, telling how much cover they can offer, and how much you’d need to pay for the premiums.

Your car’s insured value will determine the maximum amount of money you may be paid if your car is written off in an insured event.

You can select an Agreed Value within a range specified by the insurer. A higher value can mean more coverage, though you’ll also need to pay higher premiums. A lower agreed value can keep your insurance costs a bit lower, at the risk of potentially ending up underinsured.

Selecting the Market Value means that if your car is written off, you’ll be paid what your car is currently worth, considering its age, condition, mileage, and more. But because your car’s value depreciates over time, you’ll likely get less money back than what you initially paid for it, so your budget for a replacement vehicle may be lower.

Some insurers may offer optional extras with their policies, such as excess-free windscreen glass replacement, access to roadside assistance for breakdowns, or coverage for baby seat replacement if you’re involved in an accident.

Generally, the more features and benefits offered by an insurer, and the more optional extras added to your policy, the more the insurance may cost. Consider your personal situation and how you plan to use your car to determine which extras may best suit your needs and offer you the most value. 

Once you know what kind of insurance you want, how much coverage you need, and have compared quotes to find the offer with the most value at a price you’re willing to pay, simply contact the insurer to accept the quote, pay the premium, and agree to the policy.

Want to get a better deal on car insurance? There are a few options you could consider.

• Apply online: Many insurers offer online discounts.
• Choose a higher excess:This can lower your premium, though in the future you’ll need to pay more out of your own pocket if you make a claim.
• Look after your car: Make sure your car is equipped with anti-theft devices, and if the option is available, consider parking your car in a garage rather than a carport, driveway or on the street.
• Pay upfront: An annual lump sum premium is often less than the total cost of lower monthly premiums.
• Adjust your agreed value: Choosing a lower agreed value can mean lower repayments, though you won’t receive as high a payout if your car is written off.
• Avoid making claims if you can: A no-claims bonus may let you enjoy a discounted premium, even if you’ve just joined with a new insurer, as your claims history can follow you.
• Restrict the drivers: Some insurers give a premium discount if your policy is restricted to drivers over a minimum age, such as 25 or 30 years old, though you won’t be covered if your car is driven by a younger driver.
• Get rid of the extras: If you’re paying for insurance features and benefits that you’re unlikely to need, you could consider removing these from your policy to help lower the premium.
• Bundle your policies: If you also need to take out home insurance, contents insurance or other cover, you may be able to get a discount on your car insurance if these all come from the same insurer.
• Drive less: The fewer kilometres your car travels per year, the less you may need to pay in insurance premiums. Consider looking for alternative travel options where available.
• Shop around: Compare quotes from different insurers each time your car insurance is due for renewal - you may be surprised!

There are a wide variety of car insurance companies operating in Australia, ranging from large institutions that also provide other financial services such as banking and credit cards, to smaller businesses that specialise solely in auto insurance.

The best car insurance company for your needs should be able to provide the level of cover you need and the features and benefits you want from your car insurance policy, while also remaining affordable.

Generally, when it comes to car insurance (and other types of insurance), you get what you pay for. Smaller budget insurers may offer basic levels of car cover while keeping their premiums and excesses on the low side, but you may not get to access as many features, benefits, bells and whistles, as you might from a larger insurer.

Similarly, a bigger insurer’s policies may cost more, but you may get to enjoy greater value for money, especially if they offer special cover, features and benefits that other insurers do not.

Comparing car insurance policies online can help you get a better idea of which car insurers offer the cover and services you need. It’s often also worth comparing online reviews and word of mouth to get a better idea of which insurers offer the best customer service and efficiently pay out claims when needed.