Defence Bank Car Insurance Review | Features & Extras | Savvy

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Defence Bank offers a range of services both to ADF personnel and families and the wider Australian community, including car insurance. Read our review to learn more about its services!

Written by , updated on February 16th, 2024

Defence Bank is an Australian credit union, meaning it reinvests its profits in the form of benefits for its members. Although its service is largely aimed at ADF personnel and their families, Defence Bank and its services are open to any Australians, with credit, banking and insurance products all available nationwide. This includes car insurance, which is issued by CGU.

Our review delves into what is and isn’t covered by Defence Bank’s car insurance policies. Learn about the ins and outs, as well as how you could customise your cover, here!

Disclaimer: all coverage offered by Defence Bank is subject to the terms and conditions of your policy. Limits and exclusions apply. Please refer to your Product Disclosure Statement (PDS) or contact Defence Bank if you’re unsure about what is and isn’t covered.

Please note that Savvy does not represent Defence Bank for its car insurance products. All listed policies, inclusions and limits are correct as of July 2023.

What car insurance policies are available through Defence Bank?

Defence Bank offers the following types of car insurance to Australian drivers:

Comprehensive Car Insurance

Third Party Fire and Theft Car Insurance

Third Party Property Damage Car Insurance

Comprehensive Car Insurance

For most insurers, comprehensive car insurance is the policy which offers the most extensive coverage, which is the case with Defence Bank. The areas which are covered under its Comprehensive Car Insurance policies include:

Accidental loss of or damage to your car, such as due to collision, fire, storm, flood, theft, attempted theft, vandalism or a malicious act
Legal liability for damage to other people’s property caused by your car, a substitute vehicle if yours is being repaired after a covered event or a trailer or caravan attached to your vehicle, up to $30 million
Insurance for baby capsules or child seats within your car which have been damaged or stolen in a covered event
After a covered event, urgent or short-term repairs to make sure your automobile is roadworthy (up to $800)
A contribution of up to $5,000 towards the funeral costs of the driver of your vehicle if they die as a direct result of an accident which is covered in your policy
Cover for a rental car similar to yours after a covered theft or attempted theft until it is recovered and fixed or your claim is settled (maximum of 21 days, $100 per day, and a maximum of $2,000 for excesses and bonds resulting from loss or damage)
Up to $1,000 in coverage for personal belongings stolen from your locked car or damaged or lost in a covered event
Cover for the reasonable cost of debris removal from your car from the scene of a covered accident
Up to $1,000 in coverage for the reprogramming and repair of your car's locks and barrels in the event your keys are stolen
Brand-new vehicle replacement if your car is deemed a total loss following a covered accident within three years and 50,000 km of its first registration
Cover for the reasonable cost of one tow per period of insurance and the storage of your vehicle if it’s deemed unsafe to drive after a covered event (coverage of subsequent tows to be determined by Defence Bank)
Cost of transporting your vehicle to or from a repairer if a covered incident occurs more than 100km from home and it’s unable to be safely driven (up to $500)
Up to $1,000 in coverage for loss of or damage to a trailer that is connected to your car
Reasonable cost of emergency transport home or accommodation if your car is deemed unsafe to drive due to a covered event and you’re over 100km from home (up to $500 in total)
Up to $5,000 in cover if you require legal representation before a coroner relating to a covered incident
Quality of repairs guaranteed by CGU

Third Party Fire and Theft Car Insurance

Defence Bank’s Third Party Fire and Theft cover sits in between its cheapest and most expensive policy options both in terms of cost and inclusions. This policy includes the following areas of coverage:

Accidental loss of or damage to your car due to fire, theft or attempted theft
Legal liability for damage to other people’s property caused by your car, a substitute vehicle if yours is being repaired after a covered event or a trailer or caravan attached to your vehicle, up to $30 million
After a covered event, urgent or short-term repairs to make sure your automobile is roadworthy (up to $800)
Cover for a rental car similar to yours after a covered theft or attempted theft until it is recovered and fixed or your claim is settled (maximum of 21 days, $100 per day, and a maximum of $2,000 for excesses and bonds resulting from loss or damage)
Cover for the reasonable cost of debris removal from your car from the scene of a covered accident
Up to $1,000 in coverage for the reprogramming and repair of your car's locks and barrels in the event your keys are stolen
Cover for the reasonable cost of one tow per period of insurance and the storage of your vehicle if it’s deemed unsafe to drive after a covered event (coverage of subsequent tows to be determined by Defence Bank)
Cost of transporting your vehicle to or from a repairer if a covered incident occurs more than 100km from home and it’s unable to be safely driven (up to $500)
Reasonable cost of emergency transport home or accommodation if your car is deemed unsafe to drive due to a covered event and you’re over 100km from home (up to $500 in total)
Up to $5,000 in cover if you require legal representation before a coroner relating to a covered incident
Damage to your vehicle caused by a named uninsured motorist (up to $5,000)
Quality of repairs guaranteed by CGU

Third Party Property Damage Car Insurance

Defence Bank’s Third Party Property Damage insurance offers limited protections for your own vehicle, instead focusing on cover for damage caused to other people’s property. It’s the cheapest type of cover as a result. What you can expect to come under your policy includes the following:

Legal liability for damage to other people’s property caused by your car, a substitute vehicle if yours is being repaired after a covered event or a trailer or caravan attached to your vehicle, up to $30 million
Up to $5,000 in cover if you require legal representation before a coroner relating to a covered incident
Damage to your vehicle caused by an uninsured driver (up to $5,000)
Quality of repairs guaranteed by CGU

Are there any optional extras available through Defence Bank?

Yes – Defence Bank offers several optional extras on their Comprehensive Car Insurance policies. These are:

Cover for a rental car similar to yours after a covered event until it’s fixed or your claim is settled (maximum of 21 days, $100 per day, and a maximum of $2,000 for excesses and bonds resulting from loss or damage)
For claims limited to the repair or replacement of windscreen or window glass, removal of both the excess and effect on your no-claim bonus
Protection for your no-claim bonus for one at-fault claim throughout your insurance period
Protection for your no-claim bonus for all at-fault claims throughout your insurance period

What are some of the pros and cons of buying car insurance through Defence Bank?

Broad new car replacement criteria: while many insurers will limit their new car replacement to within two years of initial registration, this is extended to three years and 50,000km through Defence Bank.
Third party liability cover up to $30 million: another area of increased coverage is its legal liability cover, which sits at a maximum of $30 million.
No-claim bonus with flexible protections: you can not only benefit from a no-claim bonus through Defence Bank but can also elect to purchase protection, either for one claim per period or all claims.

Hire car after no-fault accidents an optional extra only: these policies don’t come with automatic cover for a hire car for any events other than theft or attempted theft, even if you aren’t at fault.
No cover for replacement keys: replacement keys after theft also aren’t covered under this policy, although the cost of necessary lock and barrel repair and recoding can be.

Common questions about Defence Bank car insurance

Can I choose my own repairer with Defence Bank?

Yes – as long as your chosen repairer meets the criteria set in place by Defence Bank and CGU, you can select where your car is fixed when it’s damaged.

Does Defence Bank offer roadside assistance with its car insurance policies?

No – you can’t purchase roadside assistance through either Defence Bank or CGU, meaning you’ll have to look elsewhere if you’re after this protection.

In what states does Defence Bank operate in Australia?

You can purchase car insurance through Defence Bank in any state or territory of Australia.

How do I make a claim through Defence Bank?

Through Defence Bank, you can only lodge a car insurance claim over the phone, though this line is open 24/7.

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