Whether you're living in and driving through the vibrant streets of Melbourne or residing further out in Bendigo, the Grampians or Mildura, having the right car insurance is crucial for residents of Victoria. Because of this, comparing your car insurance options is a crucial step to take in the process of finding your ideal policy.
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What are my car insurance options in Victoria?
When it comes to car insurance options in Victoria, there are several coverage types available to protect your vehicle and provide financial security in the event of a covered accident or other circumstances included in your policy's coverage. Here are the main car insurance options in Victoria:
- Comprehensive car insurance: comprehensive car insurance offers the highest level of coverage available. It can protect against a wide range of risks, including damage to your vehicle in an accident, fire, theft, vandalism and certain weather events. It can also cover damage to third-party property which you’re responsible for.
- Third party fire and theft (TPFT) insurance: TPFT insurance can provide coverage for damage to your car caused by fire or theft, on top of damage caused by your vehicle to someone else's property. It offers more coverage compared to TPPD insurance.
- Third party property damage (TPPD) insurance: this insurance can cover the damage caused by your vehicle to someone else's property. It doesn’t cover damage to your vehicle, typically making it a cheaper type of car insurance than TPFT and comprehensive cover.
- Compulsory third party (CTP) insurance: CTP insurance is mandatory in Victoria and can cover your liability for personal injury or death caused by your vehicle to other people, including passengers, pedestrians, and other road users. It does not cover damage to your vehicle or other people's property. The premium for CTP insurance is included in your vehicle registration and is known as the transport accident charge.
| Claimable event | Comp. | TPFT | TPPD | CTP |
|---|---|---|---|---|
|
Damage to someone else’s property
|
✓
|
✓
|
✓
|
✖
|
|
Damage to your car due to fire
|
✓
|
✓
|
✖
|
✖
|
|
Damage to your car due to theft
|
✓
|
✓
|
✖
|
✖
|
|
Damage to your car due to weather
|
✓*
|
✖
|
✖
|
✖
|
|
Damage to your car due to accident or collision
|
✓
|
✖
|
✖
|
✖
|
|
Injury or death of someone else in an at-fault accident
|
✖
|
✖
|
✖
|
✓
|
*Not all weather-related incidents are covered under a comprehensive car insurance policy. Check your PDS to find out what's covered and what isn't.
How do I compare car insurance offers in Victoria?
There are many factors to consider when comparing car insurance deals as a Victorian driver. Some of the key ones to think about are the following:
Cost of the policy
When comparing car insurance offers, it's crucial to consider the premium rates offered by different insurers. While affordability is a key factor, it's also crucial to ensure that the coverage provided meets your needs. Because of this, it’s worth looking for a balance between cost and coverage when selecting your car insurance.
Policy coverage
Carefully review the inclusions and exclusions of each car insurance offer. It's important to understand the limitations and exclusions that may affect your coverage. Look for any specific driver restrictions or limitations on coverage for certain types of vehicles, as well as any potential inclusions (if you want to cover a trailer, see whether you can do so with a standard policy). Being aware of these details ensures you’ll have a clearer understanding of what your policy does and doesn't cover.
Excess options
Another important aspect to compare is the excess amount charged by insurers. The excess is the amount you need to pay out of pocket when making a claim. While a higher excess may result in lower premiums, it's essential to assess whether the excess amount is affordable for you in case of a claim. Consider your financial situation and weigh up the potential premium savings against the potential out-of-pocket expenses if you make a claim.
Optional extras available
Assess the availability of optional extras offered by insurers. These extras may include additional coverage for roadside assistance (which can help with engine failure where car insurance won’t), coverage for windscreen repair or replacement without any excess or hire car coverage and emergency accommodation expenses. Evaluate the cost-effectiveness and relevance of these extras based on your individual needs and preferences. Consider whether they provide value for money and enhance the overall coverage of your policy.
Payment options
Consider the flexibility of payment options provided by insurers. Determine whether you have the option to pay your premiums monthly or annually, as some insurers may offer discounts for annual payments, while others could potentially offer monthly payments at no extra cost. Choose the payment option that suits your financial situation and preferences, ensuring that it aligns with your budgeting needs.
Discounts and bonuses
Inquire about available discounts and bonuses which could help you save. Common deals include multi-policy or multi-car discounts and promotional discounts for signing up within a certain timeframe or online. Explore the eligibility criteria for each discount and determine if you qualify for any of them. You should also assess whether the discounts and bonuses are worth it in the long run, as short-term savings don’t automatically mean you’ll save money in the long term.
What are the requirements for car insurance in Victoria?
In Victoria, the legal requirement for all registered vehicles is to have CTP insurance. As mentioned, this type of insurance provides coverage for personal injury or death caused by your vehicle to other people. It’s mandatory and included in your vehicle's registration fees.
While comprehensive or third party car insurance isn’t legally required in Melbourne or wider Victoria, having one of these optional policies can offer greater peace of mind and financial protection in case your vehicle or someone else's property is damaged, provided it falls within the coverage specified in your insurance policy.
Assessing your needs, budget, and the value of your vehicle is crucial in determining the most suitable coverage option for you. By considering these factors, you can make an informed decision and select a policy which aligns with your requirements as a driver. It's always important to compare quotes from different insurers to find the best coverage options and premiums that suit your needs and budget.
Top tips for saving on your car insurance in Victoria
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Compare quotes from multiple insurers
Obtain quotes from different insurance providers can help you choose a policy offering the coverage you’re looking for at the lowest available price with more confidence.
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Consider increasing your excess
Opting for a higher excess amount will lower your premiums. Assess the potential savings versus the out-of-pocket expense in the event of a claim.
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Maintain a good driving record
Maintaining a clean driving record can help you qualify for lower premiums. Avoid accidents and repeated claims that can negatively impact your policy wherever possible.
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Drive less
By driving less, you reduce the likelihood of accidents and potential claims, which insurers take into account when determining premiums.
Types of car insurance
How to buy car insurance
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Fill out an online quote form
To generate relevant quotes, you’ll need to provide information about yourself, your car and the cover you’re after. This quote form is simple and should only take minutes to complete.
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Compare offers
Once you’ve done this, you’ll be able to compare personalised quotes based on premiums, inclusions, exclusions, claims process, excess, optional extras and more in minutes.
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Pick one you like and buy it
If you find a policy you’re happy with, you can complete your car insurance purchase through our partner's website. Once bought, your cover can kick in as soon as today.
