Comprehensive car insurance: What is it, what does it cover, what are its benefits, etc?
Comprehensive car insurance is a type of coverage that protects your vehicle from damage not caused by a collision. It covers a wide range of incidents, such as natural disasters like tornadoes, accidents with animals, vandalism, theft, break-ins, and even damage from structures like collapsing garages.
In this blog, we'll talk about the details of comprehensive car insurance, explore its coverage, and benefits, and why it's a valuable addition to your policy.
What's covered by Comprehensive Car Insurance?
Comprehensive car insurance provides extensive coverage for your vehicle and offers protection in various situations. Here's what is typically included:
- Accidents: Your car is covered in an accident, along with other cars and property if the accident is your fault.
- Theft and vandalism: Coverage is provided if your car is stolen, vandalised, or damaged in an attempted theft.
- Fire, storm and flood: Your car is covered if it's damaged by fire, severe weather conditions, or flooding.
- Hire car: If your car is stolen or undrivable after an accident that's not your fault, a hire car can be arranged for you.
- Towing: Costs for towing your car to a repairer or safe location are covered if your car cannot be driven after a covered event.
- New replacement car: If your new car is written off in its first two years, efforts are made to replace it with a similar new car.
- Engine: Any damage to the engine (due to accident or otherwise) will be covered subject to terms.
- Emergency repairs: Necessary repairs after a covered event are covered to ensure your car is secure and safe to drive (up to $800).
- Personal items: Coverage for personal items in your car if they're stolen or damaged in an accident (up to $500).
- Baby seats: Baby capsules and seats are covered if they're stolen or damaged in an accident (up to $500).
- Tools of the trade: Your work tools are covered if someone breaks into your car or locks your toolbox (up to $1,500).
- Ridesharing: Coverage is provided if you occasionally drive your car for a ridesharing service like Uber.
- Included extras: Extras and modifications like spoilers, alloy wheels, and tow bars are automatically covered at no extra cost.
- Accessibility modifications: Modifications to your car (such as hoists, hand controls, and wheelchair ramps) are covered. On agreed value policies, cover is limited to the agreed value.
Comprehensive car insurance offers peace of mind by providing coverage for a wide range of risks and situations, ensuring you're protected on the road.
It's important to note that the coverage provided by comprehensive car insurance can vary between insurers. The list provided gives you a general idea of what is typically covered, but the specific details and extent of coverage may differ depending on the insurance company you choose. We advise you to carefully review the policy documents and discuss your needs with the insurer to understand the exact coverage you'll receive.
How Much Does Comprehensive Car Insurance Cost in Australia?
Comprehensive car insurance is an essential expense for many Australian households, but the price can vary significantly based on various factors. On average, the cost ranges from about $800 to over $3,000 per year. However, the actual amount you'll pay depends on your car value, the level of coverage you choose, and the insurance company you select.
The average costs of comprehensive car insurance in Australia are approximately:
- $2,184 for females under 25
- $2,437 for males under 25
- $1,733 for ages 25-29
- $1,312 for ages 30-49
- $1,006 for ages over 50
These figures are averages, so your premium may differ. It's advisable to compare quotes from different insurers to find the best coverage at a competitive price.
The fees for filling/excess charges vary depending on the state in Australia, typically falling between $500 and $3300. However, these prices fluctuate based on market conditions, insurance providers, and individual states.
What optional extras can you get with Comprehensive Car Insurance?
When it comes to comprehensive car insurance, the optional extras you can add to your policy vary depending on the insurer and the specific policy you choose. Some common optional extras include:
- Personal effects cover: This provides a set amount to replace personal belongings that are lost or damaged in an accident.
- Emergency Transport and Accommodation Cover: This helps you if you're stranded because your car is no longer safe to drive.
- Towing: Coverage for towing your car if it's necessary after an accident or breakdown.
- Open driver cover: This ensures that anyone who drives your car is covered by the policy, not just the listed driver(s).
Optional extras that usually come with an additional fee and increase your premiums include:
- Hire car: Coverage for a hire car while your car is being repaired.
- Reduced or no excess for windscreen replacement: Replacement of damaged windscreens with reduced or no excess.
- No-claim bonus protection: Protection for your no-claim bonus if you make a claim.
- Choice of repairer: The option to choose your repairer for repairs.
These optional extras can provide added peace of mind and convenience, but it's essential to consider whether they are worth the additional cost for your circumstances.
What exclusions should you be aware of with Comprehensive Car Insurance?
While comprehensive car insurance provides extensive coverage, there are still certain exclusions to be aware of. Your product disclosure statement (PDS) will contain a detailed list of exclusions, but many of the most common ones are straightforward and manageable if you drive responsibly.
Here are some common exclusions:
- Damage caused when the driver is under the influence of drugs or alcohol.
- Damage caused when the driver is unlicensed or driving an unregistered vehicle.
- Claims may be refused if your car is considered unroadworthy.
- Claims may be refused if your car has modifications that you haven't notified your insurer about.
It's important to review your policy and understand these exclusions to ensure you have the coverage you need.
What are some good companies that offer car insurance in Australia?
When looking for reliable car insurance in Australia. consider these top providers:
- Allianz: They offer comprehensive plans with hire car, choice of repairer, and post-accident assistance. 2.3-star rating on ProductReview.
- Youi: Highly rated with 4 stars on ProductReview, includes free roadside assistance, emergency accommodation, and transport for incidents over 100km from home.
- NRMA: Offers new-for-old car replacement, discounts, and after-accident care. Roadside assistance needs separate purchase.
- AAMI: Allows insured value choice, roadside assistance, and windscreen cover. Offers various discounts.
- Budget Direct: Provides hire car cover, break-in cover, and accidental damage cover.
- RACV: Offers customisable policies, suitable for Victorians with reciprocal insurers interstate.
Is Comprehensive Car Insurance mandatory in Australia?
Comprehensive car insurance is not mandatory in Australia. However, there is a compulsory insurance requirement known as compulsory third party (CTP) insurance, colloquially also known as 'Green Slip' insurance in New South Wales. This insurance is mandatory in every Australian state and territory.
Before you can register your vehicle and drive legally, you must have a valid CTP insurance policy in place. While comprehensive insurance provides broader coverage, CTP insurance specifically covers compensation for personal injuries caused by your vehicle in an accident.
Conclusion
Comprehensive car insurance offers extensive coverage for your vehicle, protecting you from a wide range of risks such as accidents, theft, and natural disasters. While it is not mandatory in Australia, it provides valuable peace of mind knowing that you are financially protected in various situations. The cost of comprehensive insurance can vary based on factors like your age and driving history, but it offers significant benefits in terms of coverage and protection. It's important to review your policy carefully, including any optional extras and exclusions, to ensure you have the right level of coverage for your needs.
FAQs
1. What does Comprehensive Car Insurance cover in Australia?
Comprehensive car insurance in Australia provides coverage for damage to your insured vehicle as well as damage to other vehicles or property caused by your car. It includes repairs for damage caused by unexpected events such as collisions, fire, theft, or weather events.
2. Is Comprehensive Car Insurance worth considering in Australia?
Comprehensive car insurance can be worth it in Australia, especially if you cannot afford to pay for repairs to your car or someone else's car, or if you rely heavily on your car and cannot live without it. If you park on the street and are concerned about theft, third-party property, fire, and theft insurance might be more suitable, as it can save you money if your car is stolen.
3. What does Comprehensive Car Insurance entail?
Comprehensive car insurance provides coverage for accidental damage to or theft of your car. It also covers liability for damage your car has caused to other people's vehicles and property. This type of insurance helps you get back on the road by covering events like collisions, theft, fire, and more.
4. What is the cost of car insurance in Australia?
The average cost of comprehensive car insurance in Australia varies from approximately $800 to over $3,000, as per Canstar analysis. The actual cost of your car insurance can depend on various factors that insurance providers consider when assessing the risk involved in insuring your vehicle.
Comprehensive car insurance is a type of coverage that protects your vehicle from damage not caused by a collision. It covers a wide range of incidents, such as natural disasters like tornadoes, accidents with animals, vandalism, theft, break-ins, and even damage from structures like collapsing garages.
In this blog, we'll talk about the details of comprehensive car insurance, explore its coverage, and benefits, and why it's a valuable addition to your policy.
What's covered by Comprehensive Car Insurance?
Comprehensive car insurance provides extensive coverage for your vehicle and offers protection in various situations. Here's what is typically included:
- Accidents: Your car is covered in an accident, along with other cars and property if the accident is your fault.
- Theft and vandalism: Coverage is provided if your car is stolen, vandalised, or damaged in an attempted theft.
- Fire, storm and flood: Your car is covered if it's damaged by fire, severe weather conditions, or flooding.
- Hire car: If your car is stolen or undrivable after an accident that's not your fault, a hire car can be arranged for you.
- Towing: Costs for towing your car to a repairer or safe location are covered if your car cannot be driven after a covered event.
- New replacement car: If your new car is written off in its first two years, efforts are made to replace it with a similar new car.
- Engine: Any damage to the engine (due to accident or otherwise) will be covered subject to terms.
- Emergency repairs: Necessary repairs after a covered event are covered to ensure your car is secure and safe to drive (up to $800).
- Personal items: Coverage for personal items in your car if they're stolen or damaged in an accident (up to $500).
- Baby seats: Baby capsules and seats are covered if they're stolen or damaged in an accident (up to $500).
- Tools of the trade: Your work tools are covered if someone breaks into your car or locks your toolbox (up to $1,500).
- Ridesharing: Coverage is provided if you occasionally drive your car for a ridesharing service like Uber.
- Included extras: Extras and modifications like spoilers, alloy wheels, and tow bars are automatically covered at no extra cost.
- Accessibility modifications: Modifications to your car (such as hoists, hand controls, and wheelchair ramps) are covered. On agreed value policies, cover is limited to the agreed value.
Comprehensive car insurance offers peace of mind by providing coverage for a wide range of risks and situations, ensuring you're protected on the road.
It's important to note that the coverage provided by comprehensive car insurance can vary between insurers. The list provided gives you a general idea of what is typically covered, but the specific details and extent of coverage may differ depending on the insurance company you choose. We advise you to carefully review the policy documents and discuss your needs with the insurer to understand the exact coverage you'll receive.
How Much Does Comprehensive Car Insurance Cost in Australia?
Comprehensive car insurance is an essential expense for many Australian households, but the price can vary significantly based on various factors. On average, the cost ranges from about $800 to over $3,000 per year. However, the actual amount you'll pay depends on your car value, the level of coverage you choose, and the insurance company you select.
The average costs of comprehensive car insurance in Australia are approximately:
- $2,184 for females under 25
- $2,437 for males under 25
- $1,733 for ages 25-29
- $1,312 for ages 30-49
- $1,006 for ages over 50
These figures are averages, so your premium may differ. It's advisable to compare quotes from different insurers to find the best coverage at a competitive price.
The fees for filling/excess charges vary depending on the state in Australia, typically falling between $500 and $3300. However, these prices fluctuate based on market conditions, insurance providers, and individual states.
What optional extras can you get with Comprehensive Car Insurance?
When it comes to comprehensive car insurance, the optional extras you can add to your policy vary depending on the insurer and the specific policy you choose. Some common optional extras include:
- Personal effects cover: This provides a set amount to replace personal belongings that are lost or damaged in an accident.
- Emergency Transport and Accommodation Cover: This helps you if you're stranded because your car is no longer safe to drive.
- Towing: Coverage for towing your car if it's necessary after an accident or breakdown.
- Open driver cover: This ensures that anyone who drives your car is covered by the policy, not just the listed driver(s).
Optional extras that usually come with an additional fee and increase your premiums include:
- Hire car: Coverage for a hire car while your car is being repaired.
- Reduced or no excess for windscreen replacement: Replacement of damaged windscreens with reduced or no excess.
- No-claim bonus protection: Protection for your no-claim bonus if you make a claim.
- Choice of repairer: The option to choose your repairer for repairs.
These optional extras can provide added peace of mind and convenience, but it's essential to consider whether they are worth the additional cost for your circumstances.
What exclusions should you be aware of with Comprehensive Car Insurance?
While comprehensive car insurance provides extensive coverage, there are still certain exclusions to be aware of. Your product disclosure statement (PDS) will contain a detailed list of exclusions, but many of the most common ones are straightforward and manageable if you drive responsibly.
Here are some common exclusions:
- Damage caused when the driver is under the influence of drugs or alcohol.
- Damage caused when the driver is unlicensed or driving an unregistered vehicle.
- Claims may be refused if your car is considered unroadworthy.
- Claims may be refused if your car has modifications that you haven't notified your insurer about.
It's important to review your policy and understand these exclusions to ensure you have the coverage you need.
What are some good companies that offer car insurance in Australia?
When looking for reliable car insurance in Australia. consider these top providers:
- Allianz: They offer comprehensive plans with hire car, choice of repairer, and post-accident assistance. 2.3-star rating on ProductReview.
- Youi: Highly rated with 4 stars on ProductReview, includes free roadside assistance, emergency accommodation, and transport for incidents over 100km from home.
- NRMA: Offers new-for-old car replacement, discounts, and after-accident care. Roadside assistance needs separate purchase.
- AAMI: Allows insured value choice, roadside assistance, and windscreen cover. Offers various discounts.
- Budget Direct: Provides hire car cover, break-in cover, and accidental damage cover.
- RACV: Offers customisable policies, suitable for Victorians with reciprocal insurers interstate.
Is Comprehensive Car Insurance mandatory in Australia?
Comprehensive car insurance is not mandatory in Australia. However, there is a compulsory insurance requirement known as compulsory third party (CTP) insurance, colloquially also known as 'Green Slip' insurance in New South Wales. This insurance is mandatory in every Australian state and territory.
Before you can register your vehicle and drive legally, you must have a valid CTP insurance policy in place. While comprehensive insurance provides broader coverage, CTP insurance specifically covers compensation for personal injuries caused by your vehicle in an accident.
Conclusion
Comprehensive car insurance offers extensive coverage for your vehicle, protecting you from a wide range of risks such as accidents, theft, and natural disasters. While it is not mandatory in Australia, it provides valuable peace of mind knowing that you are financially protected in various situations. The cost of comprehensive insurance can vary based on factors like your age and driving history, but it offers significant benefits in terms of coverage and protection. It's important to review your policy carefully, including any optional extras and exclusions, to ensure you have the right level of coverage for your needs.
FAQs
1. What does Comprehensive Car Insurance cover in Australia?
Comprehensive car insurance in Australia provides coverage for damage to your insured vehicle as well as damage to other vehicles or property caused by your car. It includes repairs for damage caused by unexpected events such as collisions, fire, theft, or weather events.
2. Is Comprehensive Car Insurance worth considering in Australia?
Comprehensive car insurance can be worth it in Australia, especially if you cannot afford to pay for repairs to your car or someone else's car, or if you rely heavily on your car and cannot live without it. If you park on the street and are concerned about theft, third-party property, fire, and theft insurance might be more suitable, as it can save you money if your car is stolen.
3. What does Comprehensive Car Insurance entail?
Comprehensive car insurance provides coverage for accidental damage to or theft of your car. It also covers liability for damage your car has caused to other people's vehicles and property. This type of insurance helps you get back on the road by covering events like collisions, theft, fire, and more.
4. What is the cost of car insurance in Australia?
The average cost of comprehensive car insurance in Australia varies from approximately $800 to over $3,000, as per Canstar analysis. The actual cost of your car insurance can depend on various factors that insurance providers consider when assessing the risk involved in insuring your vehicle.
