Our Pick Of The Best Comprehensive Car Insurance Providers in Australia

To find the best comprehensive car insurance providers in Australia, Forbes advisor performed an in-depth analysis of 19 of the most popular insurers.

The analysis included evaluating how a car (and its driver) is insured (whether by market value or agreed value); what inclusions were on offer, such as hire cars or free roadside assistance; and an in-depth review of each provider’s product disclosure statement (PDS) to evaluate exclusions and extras.

We analysed 16 key criteria:

• Type of insurance: is it insured on market value or on agreed value, or can the customer choose between either?
• The product review rating: what average review rating has the comprehensive car insurance policy of each provider received via Australia’s independent consumer opinion site, ProductReview?
• Hire car: is a hire car provided in case of no-fault accident, and if so, is there a daily limit?
• Break ins: are the contents of the car covered in case they are stolen or damaged, and are there any limits to be aware of?
• Repairer: can the individual choose their own repairer in the event of an accident?
• Accidental damage: any cover provided for accidental damage to the vehicle?
• Exclusions: are there any exclusions on a policy, ranging from mechanical failure to drink-driving and more?
• Roadside assistance: does the provider offer free roadside assistance in its policy and if not, can it be purchased as an add-on?
• After-accident care: whether the provider will cover transport, towing, and accommodation in the event of an accident, along with any possible limits or conditions;
• Windscreens: whether the provider covers windscreens;
• No claims bonus: if the insurer offered discounts to drivers who don’t make claims?
• Drive less, pay less: if the insurer offered discounts to those who drive their car less than the average driver;
• General discounts: any further discounts offered by the provider, such as multi-policy deals or online promotions?
• Car replacement: whether the insurance provider offers a new-for-old car replacement; and
• Customer service: the comprehensive car insurance provider’s customer-service capabilities, including how easy it is to make a claim.

These variables were compared to determine an overall ranking of each comprehensive car insurance provider. Insurers were ranked between 1-5, with the leading providers included in the above best-of list.

Please note that price was not included as a metric in our evaluation of leading providers due to the many variables involved in determining premiums, which can vary significantly depending on a driver’s experience, age, gender, geographic location and how the car is secured overnight. To get a better idea of price, you can read our guide to car insurance costs.

A Note on Star Rankings

You will note that we have included a star rating next to each product or provider. This rating was determined by the editorial team once all of the data points above were considered, and the pros and cons of each product attribute was reviewed. The star rating is solely the view of Forbes Advisor editorial staff. Commercial partners or advertisers have no bearing on the star rating or their inclusion on this list. Star ratings are only one factor to be considered, and Forbes Advisor encourages you to seek independent advice from an authorised financial adviser in relation to your own financial circumstances and investments before you decide to choose a particular financial product or service.

Data Research: Forbes Advisor Data Researcher, Mia Dunn

As mentioned, car insurance is a legal requirement in Australia. To be able to legally drive on Australian roads, you must have compulsory third party insurance (CTP). While the finer details–such as its cost and the application process–varies between states and territories, CTP generally covers any costs related to injuries or death in motor vehicle accidents.

In NSW, ACT, Queensland and South Australia, CTP is underwritten by private insurance companies, meaning the price can differ depending on which provider you choose. Meanwhile, in Victoria, Western Australia, Tasmania and the Northern Territory, CTP is issued directly through the relevant state government in annual vehicle registration costs. You can read more in our guide to finding the best CTP insurance.

There are other third party insurance offerings you can purchase, too, including third-party property damage.

Third-party property damage cover is the most basic (and therefore cheapest) type of elective car insurance. It only covers damages you cause to other vehicles or property while driving, rather than your own car. You can read more about this type of insurance in our guide to the best third-party property insurance. This type of insurance is not to be confused with third-party fire and theft cover, which may be a great option for those seeking to also cover damage to their own car as a result of fire or theft. If you park your car on the street overnight or drive regularly in high crime-risk areas, it could be a worthwhile policy.

The most comprehensive coverage an individual can take out, as the name suggests, is comprehensive car insurance. It is much more costly than CTP, but offers a broader range of protection for drivers.

As with any insurance policy, your level of cover depends on the provider and plan you have chosen. Typically, a comprehensive car insurance policy will include the following:

Hire Car Cover

Hire cars can be handy if your wheels need substantial repairs. Hire car cover provides you with a rental vehicle, usually up to a certain cost or for a specified period of time. Keep in mind that this isn’t always an automatic inclusion—some comprehensive car insurance policies only offer hire car cover as an add-on at an additional cost.

Roadside Assistance

Most roadside assistance is bundled into your policy at an additional cost: of all the insurers we analysed only Youi includes it as standard in comprehensive cover. It is worthwhile though as it helps you get the assistance you need if you have a flat battery, accidentally lock your keys in the car, or need to be towed due to a flat-tyre.

After-Accident Care

After-accident care varies among providers but, generally speaking, it refers to towing your vehicle from the site of the accident and providing you with transport to the repairer or home. Some providers will even cover accommodation if the accident  happened a certain distance from home.

Cover for Break-Ins

Most people think very little about the belongings inside their car but these can be stolen, too. Break-ins pose a real threat, whether your car is parked down the street or in your garage while you’re on a holiday. Under break-in cover, personal belongings are insured up to a certain value in comprehensive car insurance policies, usually between $500 and $1000.

New-For-Old Replacement Cover

If your car is written off after an insurable event, many car insurance providers will replace your car with a similar make and model of equal value. There are limitations on this benefit: usually the car needs to be less than 2 years old, as well as new or demonstration model.

Discounts are common in the car insurance world, with many insurers rewarding drivers for being a safe driver with no history of making claims, for driving fewer kilometres each year than average and even taking out a policy online.

No Claim Bonus or Discount

A no claim bonus is a discount on your car insurance for drivers with a history of not making claims. The discount increases each year if the driver continues not to claim, usually up to a maximum number of years or percentage discount.

According to the government’s Moneysmart, comprehensive car insurance providers that offer a no claims bonus will calculate the discount by looking at how long you (and any other drivers on your policy) have been driving; your claims history, including any claims by other drivers on your policy; and your rating from your previous car insurer.

“Generally, ratings start at six and reduce by one for each year you don’t claim. For example, ‘rating one’ drivers haven’t made a claim for the last five years (this is usually the maximum number),” Moneysmart explains.

For those with no car insurance history, insurers may choose to look at your driving record to calculate your discount.

Drive Less, Pay Less

Some drivers use their infrequently, only taking it out of the garage for special trips or weekend excursions. Certain comprehensive car insurance providers, such as AAMI, will offer a ‘drive less, pay less’ discounts on your policy.

This may be determined by kilometres travelled per year, while others may void the discount once the speedometer reaches a certain number of kilometres.

Other Discounts

There are other discounts available that have nothing to do with your driving record, such as discounts for purchasing a policy online; multi-policy discounts; and other one-off promotional discounts throughout the year.

Discounts can be appealing but make sure you understand the other features of your policy to ensure it suits you over the long-term.

Insurance premiums are rising across the board, but that doesn’t mean you need to wear the cost hike. If your policy is up for renewal soon, you will usually receive an email letting you know what your new premium compared to last year’s. If it’s too high, then we recommend getting in touch with your insurer and asking them for a better deal. If they won’t come to the party, then look elsewhere.

We cannot overstate this enough: rather than getting hit with the ‘loyalty tax’ by staying with the same insurer year after year, shop around for a better deal elsewhere.

The good news is that many of us are already doing this. According to 2023 research by Roy Morgan research, 7.7% of vehicle insurance policies, some 2.6 million, switched to another company, while 25.9%, or 8.7 million vehicle policies, were renewed (rather than switching) after approaching another company.This means people looked for a better deal for 11.3 million vehicle policies.

“These figures show the number of policies at risk of being switched increased in the last year coinciding with the highest level of inflation in over 30 years and the most rapid increase in interest rates this century,” CEO of Roy Morgan Michele Levine said.

However Levine added that while more of us are shopping around, more than over 85% of policy holders eventually stick with the same company.