Suppose you plan to live in Australia for a long time or at least a few years. In that case, you should have a plan to buy a car for transportation because in Australia, where the land is vast, waiting for public transit is simply making people panic. Although it is easy to buy a car in Australia, it is difficult to buy car insurance; complex insurance terms and various types of terminology will often make people feel clueless when choosing insurance, which is challenging. Moreover, the insurance industry in Australia is relatively prosperous, and the competition among various insurance companies in the market is fierce, so selecting an auto insurance policy that suits you is also a big headache! So, what are the Australian car insurance companies? How to buy car insurance in Australia is reasonable? How much is car insurance in Australia?
Types of Car Insurance in Australia
Comprehensive insurance
Basic Comprehensive Car Insurance
Comprehensive Car Insurance covers property damage to the insured and third-party vehicles and damage caused by fire, theft, natural disasters, etc. Not only that, but the vehicle’s wheels, roof, and sound system are also included.
Comprehensive Plus Car Insurance
Comprehensive Plus Car Insurance is the most comprehensive type of car insurance that pays for repairs to your automobile and property, regardless of who is at fault for the damage. It also covers the cost of emergency repairs, transportation expenses, and damages to other drivers. It also covers broken windows, car repairs, roadside assistance, car rental while the car is being repaired or stolen, and other claims.
Compulsory Third Party Insurance
Compulsory Third-Party (CTP) is also called Third-Party Basic Insurance, a compulsory automobile insurance. CTP is a kind of mandatory auto insurance, mainly to protect the driver, passengers and passers-by, that is to say, the third party’s injury caused by the accident. CTP is usually purchased together with the vehicle’s rego. The process of compulsory third-party personal insurance varies from state to state; please check with your local government for specific regulations.
Third-Party Property Damage Car Insurance
Third-Party Property Damage Car Insurance generally compensates for property damage caused by a third party after an accident. Still, it is not responsible for the cost of repairing your vehicle.
Additional Insurance
Third Party Fire &Theft Car Insurance
Third Party Fire &Theft Car Insurance is an additional insurance, if you only buy a third party insurance, then you can also add some extra insurance, so that you can protect the vehicle fire nature, vehicle theft and other property damage.
Road Assistance Insurance
Road Assistance Insurance ensures that no matter where you are, in the event of an accident, your insured company will come to your rescue as soon as possible with just a phone call. As each company offers different types of insurance, this type of insurance is sometimes offered as a separate rider and sometimes included in a comprehensive insurance policy, depending on the regulations of the different insurance companies.
How Do I Choose the Right Car Insurance?
In Australia, apart from Compulsory Third-Party insurance, which is mandatory for car owners, car owners can choose other types of insurance according to their situation.
Before picking a car insurance policy, you can consider a few questions:
How old is the regular driver?
What is the value of the car?
What are the driving skills of the regular driver?
Are there any lousy driving behaviours?
Generally speaking, full coverage is recommended for new and more expensive vehicles and new drivers. For used cars or relatively inexpensive vehicles, it is recommended to purchase third-party property insurance to minimize the owner’s financial losses.
You can also use the following formula for evaluation:
One year of full coverage x 10 > the price you paid for the car. Third-party property insurance is recommended.
One year of full coverage x 10 < the price you paid for the car full coverage is recommended.
What are the Factors Affecting Auto Premiums?
The Value of the Insured Vehicle
In general, car owners can choose the purchase price of a new car, the market price, and the agreed price to determine the amount of car insurance coverage. Different coverage, the percentage of compensation and insurance premiums will be different. Car owners pay a little cheaper than the market price; according to the agreement, the price is more expensive to develop the value of the insured vehicle.
Age of the Motorist
The older the motorist is, the cheaper it is, and the younger the motorist is, the more expensive it is, but of course, the prerequisite is a good record, and if there is a record of insurance, it will not be cheaper. Usually, 25 years old is the cut-off point of the price level, so many students can buy a car and car insurance in the name of their parents and add their name in the second driver so that the price of full insurance will be significantly reduced. Insurance companies will also consider the type of license the motorist holds, with L license having the highest premiums and Full license having the lowest.
Excess Fee
The Excess Fee is also known as the application fee. If you are under 25 and want to reduce your total coverage price, you can appropriately increase your Excess Fee. Then, the total coverage price will be reduced accordingly.
Vehicle History
If the car has been hit before, had some Non-Standard Accessories, etc., those will increase your Insurance Fees, and some severe cases may not give you insurance.
Here, also consider the vehicle’s previous insurance interval, also known as rating; the longer the interval price is about cheap, the more recent the accident record, the higher the price.
The longer the interval, the cheaper the price. The more recent the accident record, the higher the price. 0 to 5 years between no claim (no claim) is considered rating 1.
0~4 years rating 2.
0~3 years rating 3.
0~2 years rating 4.
0~1 year rating 5.
0-year rating 6.
Each company’s rating level discount is different, but all of these help reduce your total coverage premium.
Purchasing Method
Buying online is usually cheaper than buying in-store.
Recommended Car Insurance Companies in Australia
NRMA
Website address: http://www.nrma.com.au/car-insurance
Website Introduction: NRMA Insurance Company is a leading company in the Australian insurance industry, with many outlets, good service and relatively high premiums. NRMA has been engaged in the insurance industry for more than 85 years, with its services covering the areas of New South Wales, Queensland, Tasmania and the Capital Territory. Its primary businesses include automobile insurance, motorcycle insurance, home insurance, business insurance, travel insurance, boat insurance, fleet insurance, life insurance, income protection insurance, and so on. Insurance, life insurance and income protection insurance.
Allianz
Website address: https://www.allianz.com.au/car-insurance/
Website Introduction: Allianz Australia is a branch of the Allianz Group headquartered in Germany. It currently has more than 2 million policyholders in Australia, and its main types of insurance include car insurance, homeowners’ insurance, life insurance, business insurance and so on. The website includes an introduction to each type of insurance, a media centre, etc. Allianz Allianz Europe AG is Germany’s largest insurance company and the world’s largest financial services group. It is strong and cooperates with many 4S stores’ brands.
AAMI
Website address: http://www.aami.com.au/car-insurance.html
Website Introduction: Founded in 1970, AAMI is a leading local insurance company in Australia, providing car insurance, home insurance, third-party compulsory personal injury insurance and small business insurance business; it currently has more than 2.5 million policyholders and millions of callers annually. Its official website provides online quote payment, online applications for various insurance, online claim appeals, etc. It is also one of Australia’s most popular insurance companies due to its affordable price and user-friendly classification.
QBE
Website Address: www.qbe.com.au/personal/quote/vehicle
Website Introduction: QBE is one of the world’s top 20 general insurance and reinsurance companies, with a presence in all major insurance markets.QBE has extended its business out of Australia into the United States, Europe, and beyond, with outlets in more than 40 different countries, and it holds a leading position in the world. The company’s divisions include the North American division, the International division and the Australian Pacific division. The international division integrates European and Asian operations, including those of Hong Kong, Singapore, Malaysia, and Vietnam. It offers a range of insurance products and risk management solutions covering the commercial, personal and professional sectors.
FAQ
How is the annual premium for car insurance calculated?
Each insurance company has its way of calculating premiums, but usually, the following factors are considered but not limited to:
Type of insurance, extra services and premiums
Where the car is stored during the day and night
Owner’s age, driving age, driving record and insurance record
Type of vehicle insured (make, model, year)
Intended use of the vehicle (e.g., private or commercial)
If the car is modified
If the car has safety devices
Agreed value or market value of the vehicle
How do you pick the right insurance company for you?
If an accident occurs, the vehicle owner must be worried and anxious, and at this time, if you run into a troublesome insurance company, it can be said to add insult to injury. Therefore, when you buy insurance, you should consider all aspects and choose the one that suits you best according to your specific needs, such as whether you can select your garage. How long does the claim process take (as short as a week or as long as several months)? Whether to provide substitute cars and other issues. Generally speaking, a large company with a high reputation is convenient and hassle-free in the claim process with a good service attitude despite relatively expensive premiums. Smaller companies or low-premium insurers may have more restrictive and time-consuming claims.
How to reduce the premium?
- Avoid modifications that may affect the vehicle’s performance and increase the likelihood of theft, undoubtedly leading to higher premiums.
- Ask your insurer for a discount when renewing your policy. All companies want to keep their regular customers, and a word of advice may make a difference.
- Don’t take claims lightly after minor accidents. Try to maintain a no-claims record with continuity. It’s better to solve minor accidents on your own, save the bottom line, and avoid increasing premiums for the coming year because of claims.
- Try to avoid car loans, which may have an impact on the premium for full coverage.
- Limit the range of drivers when purchasing a policy and avoid young drivers, especially young males, as they are the most accident-prone group, and premiums naturally rise dramatically with them.
Tips for Buying Car Insurance
Car insurance can be applied online on a car insurance brand website. After filling out the information, you can get a quote (Quote) and compare several insurance quotes to see the most affordable.
Insurance companies now offer deferred payment, so the insurance policy can take effect when you specify or instantly after submitting your information. Then you can pay the total amount within the next month. During this month, the insurance company will still pay for it even if you haven’t paid yet but have an accident.
Insurance is best calculated from the first day you start using the car, and it’s best not to take any chances and say you’ll drive it for two weeks before you do it. The first few months are accident-prone for newcomers who have just bought a car.
Car insurance can be frozen or cancelled in the middle, and if you go back to your home country for two or three months, you can save a fortune by temporarily cancelling it.
