Compare cheap car insurance in Australia
Insurance
Types of Insurance
Sep 30th
Compulsory third party (injury) cover is compulsory if you own a car. However, broader cover can prove indispensable – as anyone who has ever had an accident will know.
Because there are so many companies and policies available, it is important you have a good understanding of the basics before you make a decision. Prices vary, and detail may vary from one to another, so your broker can provide a lot of help here.
There are four basic cover options:
- Compulsory Third Party (injury) – insures against claims made against you for personal injuries and covers legal costs arising out of the use of your car. Commonly referred to CTP, you must obtain this insurance to register your car.
- Third Party Property Damage – insures your liability for damage to another vehicle or to the property of others (a fence, for example). It covers both the damage and your legal defence. It does not include repairs to your own car if you cause an accident. If you decide you don’t want or can’t afford comprehensive insurance (see below), third party property is undoubtedly vital insurance to have, because a big claim could easily bankrupt you.
- Third Party Fire and Theft – insures against the events in the former category as well as fire and theft. It also insures against damage caused while the car is stolen.
- Comprehensive – insures against all of the above plus damage caused by your own car by you in an accident. If you’re buying a car on an installment basis, this cover will usually be insisted upon by the finance company.
Temporary car insurance
When you first purchase a car and need it insured immediately so you can drive it home, you can get a temporary insurance with any of the companies on this site. Please don’t take the risk since there would be nothing worse than losing your new car!
Collision or Comprehensive Insurance?
Collision Insurance reimburses you for the entire cost of repairs or replacement of your motor car after an accident. Comprehensive covers you in the event your car falls victim to a natural disaster, vandalism or theft. With either coverage, the lower the deductible you choose, the more the policy will cost you. We recommend that you always choose the highest deductible you can afford ($800 is fine). Besides, the purpose of insurance is to help you out of situations that could send you broke, or even worse, forcing you to sell your car. If you have an older car, you might drop this coverage altogether. So when do you need it?
Do I need Comprehensive Car Insurance?
Well, it can account for 30% to 40% of your total premium. If your car is damaged, the most you’ll recoup is the Red Book value, which declines relative to your cars age. If the cost of your collision and comprehensive insurance is more than 10% of your car’s Red Book value, it probably makes sense to drop these coverages and save wad of cash. With most cars, you should approach this limit as the car turns five years old. Please be aware, however, that if you eliminate comprehensive or collision insurance, you’ll have to foot the repair bill if you get in an accident that’s your fault, or if the car is totalled or stolen.
USA Car Insurance
Sep 14th
This page compares Canadian and USA’s cheapest car insurance prices. Please select a state to continue.
UK Car Insurance
Sep 14th
Need car insurance in the UK? So do we!
If you know of any car insurance companies in the United Kingdom, please let us know. They must have amazing customer service
Car Insurance Information
Jul 20th
Some information you need to know
Before buying your car insurance, here are some useful things you need to know.
- Excess or Deductible: These terms mean the same thing – that you accept part of the risk yourself. Practically speaking, this means that in event of a claim, you pay a certain amount. However if the accident was not your fault, the insurer may waive your contribution or return it to you. Some insurers make the excess compulsory, while others allow policyholders to use it to reduce their annual premiums.
- No Claim Bonus: A feature of comprehensive policies, this means you are rewarded on an ascending scale for each successive year without a claim. If you do claim, your bonus is reduced, although if the accident is not your fault, certain insurers will leave your bonus intact. Once you’ve reached the highest scale, some insurers allow you to “protect” your bonus by paying an extra premium, so you’re not penalised for just one claim.
- Extended Third Party Property Damage: This covers you in the event of an accident that’s not your fault where the person who caused the accident has no insurance. It’s not offered by all insurers and it usually has a limit of a few thousand dollars.
- Market Value or Agreed Market Value: Most policies provide settlement for a total loss claim (if the car is stolen or irredeemably damaged) on a “market value” basis. This means you are entitled to an amount representing the cost of a vehicle of similar make, model, age and condition. Or, if the vehicle is less than one year old, many insurers will replace it with a new vehicle of the same make and model you lost. An Agreed Market Value cover is especially useful for classic or vintage cars – where the insurer agrees to pay a specified amount in the event of a total loss.
- Premium Rating: The premium, or cost of the insurance, is based on such factors as type of vehicle, age of the driver, driving experience, occupation, location and intended use of the vehicle. Modifications to a vehicle must be disclosed, otherwise future claims may be refused.
- Making a claim: In an accident you should do two things. Firstly, ensure you comply with all legal requirements (e.g. notify the police, exchange details with the other driver, etc). Secondly, notify your insurance broker as soon as possible, preferably within 24 hours. He or she will then advise you on the steps you need to take to make a claim.
Golden Car Insurance Tips
Jul 20th
What tweeps are saying about insurance.
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You will find that there are various types of car insurance. They are listed here for your conveniance
- Compulsory third party (AKA CTP / green slip insurance) is the minimal cover that every car must have by law. It provides essential cover against claims for compensation if you injure or kill someone in a motor accident.If you believe your car is not worth much, you may wish to take out compulsory 3rd party insurance only. Keep in mind that it doesn’t cover you for damage caused to other people’s property. like if you’re unlucky enough to run into a Ferarri.
- Third party property is the least expensive option. It covers you for the damage you may cause to another car and may include limited cover for damage caused to your car by an uninsured driver.
- Third party property, fire and theft also covers you if your car is stolen or burnt.
- Comprehensive car insurance is the best cover option but also the most expensive. It includes the cost of crash repairs or replacing your car, even if you’re at fault.
How to save $$$ on car insurance
You can easily save hundreds of dollars by shopping around for comprehensive car insurance.
- $250 for claim-free adult drivers
- $460 if you’ve made a claim
- $870 for a family with a young driver
- $1650 for a young driver alone
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Other than shopping around, there are ways to save on the premium:
- Choose a higher excess
- A no claim bonus (NCB) can get you a discount of up to 70%. You need up to six claim-free years to be entitled to the maximum NCB
- Nominating drivers or restricting the use of your car to drivers over a certain age (usually 25)
- Discounts – for example if you have another policy with the same company, you’re a long-term customer or if your car has an immobiliser
Tip: Save on CTP in NSW & QLDIn all states but NSW and Queensland, compulsory third party insurance is provided by only one state-owned or government-licensed insurer. In NSW and Queensland it’s offered by a number of insurers and it pays to shop around. For an online price guide go to:
- NSW — www.maa.nsw.gov.au or phone 1300 137 600
- QLD — www.maic.qld.gov.au or phone 1300 735 404
If you have an accident
Don’t Panic! You’ll need to let the insurance company know immediately. You might also be required to contact the police. Most insurers leave your no-claim bonus intact if they agree you’re not at fault, provided you can identify the person responsible.