Compare car insurance so you can find the best deal. If you aren’t sure where to begin, Monzi’s got you covered. We’re here to break down everything you need to know about finding your next insurance provider.
Please note, certain ideas and products presented in this article may not be offered by Monzi nor the lenders we work with. This article presents only general information. Consider seeking professional financial, taxation, legal or other advice to check how the information and ideas presented on this website relate to your unique circumstances.
What is car insurance?
Put simply, car insurance protects you when something goes wrong on the road. More specifically, insurance can financially cover you in the event of an accident, theft, weather damage and more, depending on your cover.
Insurance works by you paying a regular insurance premium in exchange for financial cover if things go wrong.
In Australia, compulsory third party insurance (CTP) is compulsory and only provides the base level of cover. We’ll explain each of these below.
Compulsory Third Party (CTP)
Mandatory across Australia, CTP insurance is often included in your registration costs, except in New South Wales where it must be bought separately.
CTP provides the most basic level of cover in Australia. More specifically, CTP covers the hospital and compensation expenses if you injure or kill another driver in a crash. CTP does not cover any damages to your own car or another vehicle.
CTP insurance is also commonly referred to as green slip insurance.
Compare car insurance – Third Party Property Insurance
This is the most basic policy above the compulsory CTP insurance. In short, Third Party Property insurance covers any damages you may cause to someone else’s car or property in a crash.
How does this work out? Well, if you crash into your neighbour’s brand-new Porsche, the damages to their car are covered by insurance. This is obviously a lifesaver for anyone who does not have the money for repairs just lying around.
Finally, while the repairs to another person’s car are covered, Third Party Property insurance does not cover any damages to your own car.
Third Party Property, Fire & Theft
This is the next level of car insurance. Moreover, this level of cover gives you a little bit more peace of mind about life’s unexpected moments.
Specifically, this protects you if your car is stolen as well as against any fire damage to your vehicle. In addition, you are protected financially if you cause any damages to another vehicle or property.
Finally, damages to your vehicle are not covered if the crash is your fault.
Comprehensive car insurance
This is the top-level of cover. Specifically, you are covered against any damages you cause to property or vehicles, even if you are at fault.
In short, comprehensive insurance covers everything the other policies do, plus more. For example, you’re protected against things like vandalism or key replacement.
As you would assume, comprehensive insurance is the most expensive level of cover.
What does car insurance cover?
What your car insurance covers depends on the policy you take out.
For CTP, the most basic level of insurance, you are only financially protected against medical or compensation costs in the event of you killing or injuring someone in a crash.
Compare this, however, to comprehensive insurance. Comprehensive car insurance covers any damages to your vehicle, as well as any legal liabilities to another driver for any damages. Moreover, a typical policy covers you for things like:
- Flood, hail, rain or other damage.
- Malicious acts, like vandalism.
- Fire damage or theft.
- Any damages to third party property.
What is not covered?
As we have established, there are different levels of car insurance. Despite this, there are some situations that most insurers will not be able to cover. Specifically, these are known as car insurance exclusions.
Typical exclusions include:
- Driving while under the influence of alcohol or drugs. Certain prescribed medicine may also be included in this.
- Getting in a crash while driving a car that is not roadworthy.
- Having an unauthorised modification on your car.
- Having an unlicensed driver crash your car. This can also include having someone who is not insured to drive your car get in a crash.
- Driving your vehicle while it is unregistered.
- Driving an overloaded car. This includes things like carrying more passengers than you should or having a load too heavy for your car.
- Damaged tyres.
- If your car is legally confiscated by police or legally repossessed.
- Mechanical or electrical breakdown. While comprehensive insurance protects you in many different situations, it does not cover your car breaking down. Protection from breaking down often comes from the manufacturer’s warranty.
- Reckless driving or motorsports.
- Hiring your car out. This also often includes any damages incurred while driving Uber or other ride-sharing services.
- Your insurer will not cover you if you fail to pay your premiums.
How should I compare car insurance?
With the number of policies available from different providers, comparing your options may feel difficult if you aren’t sure where to look. So, to give you a bit more of an idea, we’ll give you a few of our tips for comparing car insurance.
Stay on top of your policy
You may assume that the longer you stay with your insurer, the more you will be rewarded. This, unfortunately, is not always true.
Ensure you review your insurance policy each renewal period. Moreover, consider whether or not you still require the same level of cover. After all, your priorities three years ago may not reflect what you feel now.
Finally, don’t hesitate to enquire with other insurers if you feel you can get a better deal elsewhere.
Compare car insurance – forget brand loyalty
Building off of what we mentioned above, don’t feel tied to a brand just because you have been with them for years or they’re the only insurer you’re familiar with. There is a huge variety of different insurers out there, so don’t sell yourself short.
In addition, there are insurers and policies to cover any situation. If you are a student short on cash, a budget insurer may be your best option. If, however, you just purchased a new Mercedes, comprehensive cover from a high-end insurer may be for you.
Do your research
At the end of the day, the best way to find a great deal is to do your own research. It doesn’t matter if you’re looking to compare car insurance NSW, or comprehensive car insurance QLD, doing your own research is the best way to find a deal.
Read through the PDS
Insurers must provide a product disclosure statement (PDS) when they recommend or offer you a product. In short, this includes all the key features, fees, complaints process and other details relating to your policy.
As a result, make sure you understand your cover. For example, certain policies may only cover you for certain mechanics. This may not be ideal if you prefer choosing your own mechanic.
Compare car insurance – what are extras?
Car insurance providers are all competing for your business. Moreover, to give themselves a competitive edge, many providers offer extras or benefits. These may be worth considering when comparing car insurance providers.
Typical extras may include:
- Hire car. Your insurer provides you with a replacement hire vehicle while your car is being repaired.
- Key replacement. We’ve all been here; your insurer covers the cost of replacing your keys in case you lose them.
- Roadside assist. Depending on your insurer, you may have your roadside assistance membership fees dropped when you sign up.
- Windscreen. Any cracks or full-replacement of your windscreen is covered by the insurer.
- Personal valuables. Personal items up to a certain value may be covered in the event of theft or damage.
Weigh up which features are important to you before comparing providers.
What is insurance excess?
Put simply, insurance excess is the amount of money you pay to your insurer whenever you make a claim. An excess will apply not only on your car insurance but on your home insurance, health insurance and a variety of other products too. In addition to this, you and your provider agree upon the excess amount when you first take out your policy.
For example, if you get in a crash and make a claim, you will pay this excess amount. Then, your insurer pays for the rest of the damages up to the amount on your policy.
The different types of car insurance excess include:
- Standard. The amount you pay out of your own pocket when you make a claim.
- Voluntary. Sometimes paid in addition to other excesses, often in exchange for a more affordable premium.
- Age. This is a separate excess applied to any young or inexperienced drivers.
- Unlisted. If someone who is not listed on your policy gets in a crash, you may have to pay an additional excess. Keep in mind, however, some insurers may not cover you at all.
- Additional. Other excesses may apply to your insurance, depending on the product you choose.
Compare car insurance – cheaper premiums
There are a number of things you can potentially do that may save you money on premiums. For example:
- Paying for premiums annually. Insurers may give you the option to pay for your premiums monthly, quarterly or annually. Certain insurers may make it cheaper to pay for it in one go.
- Increasing basic excess. Aussies may be able to reduce the cost of their premiums by increasing what they pay in excess. Keep in mind, however, you will be paying a greater excess if you make a claim.
- Age exclusions. Insurers, in general, view older drivers to be more experienced and less risky. As such, you may save money by limiting drivers to a certain age; over 25 for example.
- Drive less. The less you drive the less risk there is of you getting in a crash. Pretty simple, right? Some insurers reduce your premium if you drive less-than-average, typically under 15,000 km per year.
- Compare regularly. The car insurance landscape changes regularly. Therefore, a great deal you found years ago may not be as sparkly these days. In short, you won’t know if there is anything better out there if you do not shop around.
Compare car insurance policy features
Get in contact with as many insurers as you can to get a quote. Moreover, aim to find the best value for money as well as a policy that suits your individual needs.
Often, however, insurance policy features can be confusing if you aren’t sure where to start. So, consider comparing the following features when looking for an insurance policy.
- Premium. Lenders may offer a lower premium for the same level of cover.
- Excess. A potential option to reduce your premium by altering your excess.
- Payment. Lenders may offer flexibility when it comes to paying your premium. For example, you may be given the option to pay your premium monthly at no extra costs.
- Exclusions. Insurance does not cover every possible event. For example, exclusions may include:
- mechanical failure, rust or general wear and tear
- intentional damage, like vandalism
- any damages caused by a unlicensed driver or a driver under the influence of drink or drugs
- storm or other weather damage.
- No claim bonus. You may pay a lower premium if you don’t make a claim for a certain period of time.
- Roadside assistance. Assistance if you find yourself broken down in the middle of nowhere.
Head to ASIC’s MoneySmart for more information.
Is a no claim bonus worth it?
Often referred to as a no claims discount or safe driver reward, a no claim bonus gives you a discount for not making a claim within a certain period of time. For example, the discount may be up to 60% in the first year. However, the no claim bonus may not be all that it seems.
In short, different insurers vary in how they structure their no claim bonus. For example, insurers may:
- put a limit on how long the bonus period runs
- increase your regular premium if you have a small accident – even if you do not claim!
- have a minimum premium amount
- reduce your no claim bonus if you choose to make certain claims.
Ultimately, you may end up paying the same premium amount after an extended period of time. Therefore, when you compare car insurance, be sure to take the above information into account.
What are my responsibilities under the contract?
You have certain responsibilities under your car insurance contract. Moreover, your insurer may not fund your claims if you fail to meet your obligations. Examples of these responsibilities include:
- Avoid dangerous situations. You must take all reasonable steps to ensure your car is safe at all times. This includes things like making sure your car is locked and that it is not left unattended with the keys dangling out of the ignition.
- Maintenance. It is up to the consumer to ensure their vehicle is kept at a reasonable and roadworthy standard. If you let your car rust or your tyres wear out, your insurer is unlikely to process your claim.
- Service. Building off the previous point, make sure your vehicle is regularly serviced according to your manufacturer’s recommendations. Keep a record of these services, as this may be useful in the future.
- Make honest claims. It is your responsibility to be honest and upfront when you make a claim. Be cooperative with your insurer and provide any of the documentation they ask for.
This may seem overwhelming, but it is really mostly common sense. In short, stick to the road rules, keep your car maintained and be aware of the exclusions on your policy.
How to make a claim
If you get yourself into a car accident, making a claim is very straightforward. Moreover, aim to get the process started as soon as possible, as some insurers may have a time frame by which you must claim within.
Here is the step-by-step guide to claiming on your vehicle insurance:
Get the details of your crash
If you are involved in a crash, be sure to get the details of the other driver. In short, your insurer may ask you for the other driver’s:
- contact details, including name, address and contact number.
- licence and car registration details.
- insurance company details.
- make of the car, as well as the colour and model.
In addition, your insurance provider may also ask you to provide details on:
- the location of the crash.
- a description of the crash, including photos of any damages.
- the police report number.
- whether or not a tow truck company was used, and their details if so.
- contact details of any witnesses present at the scene.
Check your policy
Check what you are able to claim by confirming your policy. For example, you cannot claim on any damages to your own car if you only have third party insurance. If, however, you have comprehensive insurance, you can claim on damages to your own vehicle.
In addition, check what exclusions apply to your policy.
Once you have done this, check how much excess you have to pay. Even if you were not at fault, you may still have to pay excess.
Finally, check the PDS for the excess amount and other conditions.
Lodge your claim
You fill out a claim form. Depending on your insurer, you may be able to do this online or over the phone.
You may want to ask your insurer if you can start a claim just to see how much repairs will cost. After all, it may be cheaper to fix minor repairs than cover the excess.
If the other party admits to it being their fault, their insurer may cover your repairs.
After your claim
By law, your insurer must get in contact with you within 10 business days of you lodging your claim. Your insurer may reject accept your claim, or ask for more details.
Keep in mind, your insurer may get in contact with the other driver, their insurer or any other witnesses to get more details on the accident.
Finally, your insurer will provide an outcome. If you are unhappy with their response, you can make a complaint to the insurer themselves. However, if you are unhappy with their response, you can get in contact with the Australian Financial Complaints Authority (AFCA).
Does Monzi offer car insurance?
No, Monzi does not offer insurance. Instead, we are a lender-finder service that may be able to help you match with your next lender. Specifically, if you’re looking for personal loans from $300 to $10,000, Monzi may be able to point you in the right direction.
In short, we’ve built up a trusted network of credit providers over time. Moreover, the lenders in our network are potentially able to consider applicants with poor credit history.
The table below shows the personal loans potentially available through Monzi’s network of lenders:
|Small personal loan||$300 to 2,000||Unsecured||Over 12 months|
|Medium personal loan||$2,001 to $4,600||Secured||13 to 24 months|
|Large personal loan||$5,000 to $10,000||Secured||13 to 24 months|
Apply online with Monzi and we may be able to match you with a lender in under 60 minutes. If, however, you apply outside of normal business hours, Monzi may only provide you with an outcome by the following business day.
Can Monzi compare car insurance?
No, Monzi cannot compare car insurance for you. However, we can give you some of the basic information you need to compare insurers yourself.
Head to our article for more information on pet insurance in Australia.
If you wish to use our lender-finder service, just confirm you meet our basic eligibility criteria:
- All applicants must be at least 18 years old.
- Every applicant must hold an Australian Citizenship or Permanent Residency to be eligible.
- You must have a personal contact number and email address.
- You must have a personal bank account with online banking active. Moreover, you must have at least 3 months of recent banking history in order to be assessed.
Consumers scroll up to the loan slider to begin. Monzi’s lender-finder service is always 100% online and paperwork free. Have bad credit? No stress. Monzi works with a number of different credit providers able to consider a range of credit profiles.
If you cannot afford your repayments, get in contact with your lender. You may be eligible for financial hardship if you meet certain criteria. Finally, lenders may offer you a payment plan if they approve your claim.