Car Insurance

There’s no one answer to which car insurance company or policy is the best, as each individual will have different needs. To find the best car insurance for you, it's important to compare policies from multiple insurers, taking into account the coverage options, premiums, excess and any additional benefits or discounts offered. Also, be sure to read the PDS carefully and ask any questions you may have before making a decision.

If you’re looking solely at the cheapest option overall, paying annual premiums is less expensive than monthly payments. This is because they’re easier to process, as it’s one payment compared to 12. While monthly premium payments ensure that the cost is much more manageable in smaller chunks, they tend to attract more service fees as a result of their frequency.

However, whether you should pay for one or another depends on your situation and whether you can afford to make a lump sum payment towards your insurance or would be more comfortable paying in monthly instalments.

Most car insurance policies will last for 12 months before they have to be renewed. However, if you wish to cancel your policy early and you’ve paid your premiums in advance, you may be able to receive a refund for the unused part of your policy (minus any administration fees or government charges).

Yes – while car insurance won’t cover you if you make an accident claim while your licence is suspended, it’s still important to insure your car if you want cover for fire damage or theft. In this instance, you may wish to take out a Third-Party Fire and Theft insurance policy to cover your car.

Yes – not including your child in your policy and allowing them to drive your car could result in a lack of coverage from your insurer if they get in an accident. However, you won’t have to include your child as a driver if they’re still a learner, as this only really comes into effect once they obtain their provisional license. It’s important to note that an accident with a learner at the wheel could result in you being charged an additional excess.

No – insurers won’t look at your credit score when processing your policy, so a bad credit rating won’t directly result in you having to pay more expensive premiums.

A car insurance excess is an administrative fee you must pay upon making a claim. For instance, if you had a $200 excess and claimed for $2,000 worth of damage, your insurer could cover $1,800, with the remainder to be paid by you. A basic excess can apply to all claims (though some insurers may allow you to avoid paying an excess by paying a higher premium), while an additional excess may apply to other factors such as window damage or drivers under a certain age.

A rating is a risk assessment based on how often you claim on insurance. In most cases, your rating will start at 6 and decrease with each year you haven’t made a claim. Rating 1 means you haven’t claimed for over 5 years and are often eligible for a no-claim bonus. No rating is a provisional rating, attracting a higher price due to bigger risk. It's important to consider whether seeking out a policy with a no-claim bonus is worth it before buying your insurance.

Many insurers will let you choose your own repairer when making a car insurance claim. This can provide greater peace of mind that your car is being serviced and repaired by someone you trust. However, not all policies will offer the choice of repairer, so it’s important to check with your insurer if you’re unsure about whether you can select where your car is able to be fixed.