Car insurance Australia
General insurance that relate to owning and operating a private automobile in Australia:
- Compulsory Third Party Insurance
This coverage protects individuals who you may injure whilst driving a vehicle. It is mandatory and is regulated by each State and Territory. It is unlawful to drive a vehicle that does not have this insurance. Visit your State’s vehicle registration authority to learn more about how to acquire this type of cover.
- Comprehensive insurance
This can cover repair or replacement of your vehicle for events including theft, collision, malicious damage and weather related damage. It can also cover repair and replacement of other vehicles that are damaged by your vehicle. Comprehensive insurance is usually chosen to cover vehicles that are in good condition. Insurers may choose to not provide cover to vehicles that are in a poor state of repair or have issues such as rust.
- Fire and Theft car insurance
This is a limited type of coverage that may repair or replace your vehicle in the case that it is stolen or damaged by fire. This type of cover will typically not assist if you are involved in an accident.
- Third Party Property car insurance
This can provide cover for damage caused by your vehicle to other vehicles or property, but does not provide cover for your vehicle. This type of cover is typically taken out by someone with a relatively low value vehicle, primarily to protect them from having to pay for the damage their car might do to a more valuable vehicle or other property belonging to a third party.
Other common motor vehicle terms to consider:
- Uninsured Motorist
Some third party fire & theft and third party property polices offer this extension. It covers damage to your vehicle up to a set amount (typically $3,000 to $5,000) if your vehicle is damaged by an uninsured vehicle - as long as you are not considered to be at fault by the insurer and you can provide the uninsured drivers name and address.
- Excess insurance
This is the amount that you will be required to contribute if you make a claim. Some polices also provide for an age excess where an additional amount is contributed, depending on the age of the driver. The amount of excess you would be required to pay is listed in your insurance documents. No Claim Bonus If you haven’t made any claims against your insurance policy, your insurance company may consider you a lower risk and may reduce your premium in recognition of this. The size of the discount, or ‘no claim bonus’, varies depending on the insurance company. When changing insurance companies your new insurer may ask for your claims record from the previous company to help them calculate the new premium.
How are insurance premiums for vehicles calculated?
Each insurance company approaches premium calculation in a unique way, giving rise to a great deal of competition. Many factors are considered including (but not exclusively):
- The location where the car is stored overnight or during the day.
- The age of the driver (insurers have exemptions from discrimination law for some issues).
- The claims history and driving record of the driver.
- The type of vehicle being insured.
- The intended use of the vehicle - eg, Private or Commercial use.
- The value of the vehicle.
Other things you need to consider before taking out auto insurance:
- Your insurer needs to be told about modifications or accessories added to the vehicle.
- You need to disclose particulars of every matter that is relevant to the decision of the insurer to offer you cover and as may be requested by the insurer, such as past traffic offences, fines, loss of license and criminal history. The insurer has a right to know and will typically factor this in to the risk you present under an insurance policy. In the event of a claim you may not be covered if you do not disclose this information.
- You have the same duty of disclosure each time the policy is renewed. If your circumstances or the details of the vehicle have changed since the last renewal you must inform.
- In some cases it will be necessary to name and provide details (age etc) for all of the drivers of the vehicle, claims may not be paid for other drivers who are unlisted.
- Don't purchase by price alone - Look for a product that is most suitable for your circumstances and needs.
- Check what you are buy - Read the Policy Document and Product Disclosure Statement carefully.
Some questions to consider when buying insurance - Ask your insurer if unsure:
- Is my car insured for Market Value or for an Agreed Value? Market Value is where the insurer determines the value of the vehicle, usually taking into account the condition of the vehicle at the time, its age and other factors.Agreed Value is where the insurer and the owner agree on the value of the vehicle at the time of taking out the policy.
- If the accident is my fault will my no claim bonus be affected?
- Will I have to pay my excess if I can nominate the other driver responsible for the loss or damage?
- What can I do to reduce my insurance premium?
- Are you permitted select your own repairer or does the insurer determine the preferred repairer, and are repairs guaranteed?
- Which option suits me best?
If your vehicle has been damaged, Involved in a car accident, and/or have caused damage to someone else's property, call your car insurance company as soon as possible.
If your vehicle has been stolen, report the theft to the police immediately, and then contact them.
List of car insurance companies in Australia
Allianz car insurance australia www.allianz.com.au
Ansvar car insurance www.ansvar.com.au
Auto and General Insurance company www.agic.com.au
Calliden Insurance www.calliden.com.au
Comminsure insurance www.comminsure.com.au
OnePath insurance www.onepath.com.au
Insurance Australia Group www.iag.com.au
Lloyd car insurance www.lloydsaustralia.com.au
Progressive Direct car insurance www.progressivedirect.com.au
QBEcar Insurance www.qbe.com.au
RAA car Insurance www.raa.net
RAC Insurance www.rac.com.au
RACQcar Insurance www.racqinsurance.com.au
Real Insurance www.realinsurance.com.au
Suncorp Metway insurance www.suncorpmetway.com.au
Territory Insurance Office www.tiofi.com.au
Wesfarmers insurance www.wesfarmersinsurance.com.au
Westpac insurance www.westpac.com.au
Youi car insurance www.youi.com.au
Zurich Car insurance www.zurich.com.au
