Best Car Insurance Companies in Australia – Compare and save on your premium

Regardless of your age or location within Australia, if you possess a vehicle, you’ll want to search for the most suitable car insurance deal that aligns with your unique circumstances and financial plan.

The pricing of auto insurance hinges on various factors, including your living place, the designated drivers, their driving track record, the vehicle’s make and model, and even its color. Certain car insurance companies may even factor in your travel distance when determining your insurance costs.

Consequently, the optimal car insurance policy or rate for you may not coincide with that of your acquaintances or neighbors. This underscores the significance of regularly comparing car insurance options to ensure you secure a favorable deal.

To aid you in streamlining your considerations, our insurance data experts and financial reporters conduct routine evaluations to compile a selection of the best car insurance companies in Australia. Some of these have received accolades, while our team handpicks others to showcase attractive current offerings.

Best Car Insurance Companies in Australia

There are many car insurance companies in Australia, each offering different types of policies, coverages, discounts, and extras. In this article, we will provide you with the ultimate guide to finding the best car insurance deal in Australia.

Budget Direct – Best for value

Budget Direct stands out as our top value choice for comprehensive car insurance, offering affordability without compromising coverage quality. Notably, it excels in customer service when compared to its primary rivals. In every state we surveyed, Budget Direct consistently boasts lower rates, with savings of $460 in NSW, $513 in VIC, $214 in QLD, $241 in SA, $265 in TAS, and $423 in WA compared to respective state averages.

However, Bingle emerges as the most budget-friendly option, undercutting Budget Direct by $237, though with reduced coverage. For instance, Budget Direct provides theft coverage of up to $500 for personal items and up to $1,000 for a replacement car, which Bingle does not match. Budget Direct also outperforms other popular insurers in external customer reviews, surpassing NRMA, AAMI, Allianz, and Coles, falling just slightly behind Youi in customer ratings.

Pros:

• Affordable pricing: The typical premium amounts to $1,004 annually, based on our investigation, which is $341 below the average.
• Uncompromised coverage: It closely matches prominent insurers like NRMA, Allianz, and AAMI.
• Exceptional customer satisfaction: It achieved a top rating in the Finder Customer Satisfaction awards (4.32/5) and on other well-regarded review platforms.

Cons:

• Budget Direct doesn’t rank as the absolute lowest-cost insurer; AAMI offers a similar rate, albeit with a higher volume of complaints in 2022-23.
• Content with a basic policy? Bingle offers an even more economical option.
• Limited coverage for stolen or damaged personal belongings, with a cap of $500, in contrast to AAMI’s $1,000 limit.

Youi – Best for Features

Youi’s comprehensive policy is affordable and offers flexibility. You can access up to $1,000 in emergencies without an assessment, usable for repairs or travel expenses when more than 100km from home. It includes emergency roadside assistance, hire car cover for theft or non-fault accidents (up to 14 days), and new car replacements for vehicles under two years old. While Youi has a vast repairer network, choosing your repairer is optional at an additional cost.

Pros:

• Complimentary roadside aid provided
• Exceptional customer feedback
• Vehicle replacement with new models

Cons:

• Telephonic inquiries are accessible for six days weekly
• Opting for your preferred repair service incurs an additional fee

Bingle – Best for Price

For those seeking an affordable policy, Bingle often stands out for its cost-effectiveness. Among the 37 insurance providers we examined, Bingle consistently offers the most budget-friendly comprehensive car insurance. On average, it can save you approximately $230 annually compared to budget insurers like Budget Direct and AAMI. However, it’s important to note that Bingle’s coverage is primarily limited to essential aspects, such as damage to your vehicle and others, with fewer additional features.

Pros:

• Affordable policies: Bingle offers budget-friendly car insurance options.
• Extended new-for-old replacement: They allow replacing cars up to three years old.
• Rideshare driver coverage: Policies include coverage for rideshare drivers, protecting your vehicle during work.

Cons:

• Limited coverage on Comprehensive Car Insurance: Compared to others, Bingle’s comprehensive policy has fewer features.
• No uninsured driver cover for Third Party Car Insurance: If not at fault, your vehicle isn’t covered in accidents with uninsured drivers.

ROLLiN’ – Best for Young Drivers

ROLLiN’ is an economical choice for young drivers, confirmed by over 1,100 quotes. Unlike most insurers, they don’t impose age-based excess charges and allow free cancellation anytime. Furthermore, they don’t add extra costs for windscreen damage, a practice common among competitors.

What sets ROLLiN’ apart is their lack of age-based excess, while others typically charge $700-$900 for claims and an additional $200-$600 for those under 25. They also offer no-excess windscreen damage repairs, a feature not found with major insurers like Budget Direct, AAMI, Allianz, and QBE. ROLLiN’ even offers the option to pay monthly at no extra charge, a rarity in the industry. Their agreed value cover provides control over payouts, which is particularly beneficial for pricier cars or vehicles with modifications.

Pros:

• Flexible subscription model: ROLLiN’s car insurance offers monthly payments with no extra cost and hassle-free cancellation.
• Auto policy renewal: No paperwork is required for policy renewal; cancellation is the only active decision.
• EV equipment coverage: Comprehensive coverage includes support equipment for electric vehicles.

Cons:

• No repairer choice: ROLLiN’s network handles all repairs, leaving no room for personal selection.
• High unlisted driver excess: An $800 listed driver excess contrasts with a hefty $3,000 for unlisted drivers.

NRMA

A car insurance service provider operating across Australia, NRMA offers a range of advantages, like vehicle replacement for new ones, rewards for claim-free periods, and top-notch post-accident support, encompassing emergency lodging and conveyance with coverage up to $1000 per day.

However, it’s worth noting that NRMA’s roadside assistance must be purchased separately and isn’t accessible in all regions. In areas outside of NSW and ACT, NRMA employs partner organizations to manage roadside aid services like towing. Thus, if you reside in Western Australia or frequently traverse the nation by road, it might not be the optimal selection.

Pros:

• Extensive policy options: NRMA provides three comprehensive cover levels in addition to TPFT and TPPD.
• Classic car coverage: NRMA offers specialized coverage for vintage cars.
• Repairer choice: Policyholders can select any licensed repairer for car repairs.
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Cons:

• Costly roadside assistance: NRMA’s Roadside Assistance is a separate, pricier subscription.
• Regional coverage variations: Coverage terms differ by state, with variations like No Claim Bonus protection availability.

AAMI

AAMI offers flexibility to its Comprehensive Car Insurance policyholders, letting them decide between market and agreed-value coverage. The insurer sets minimum and maximum limits for agreed value options. Beyond this, AAMI extends further customization with the inclusion of roadside assistance and windscreen protection. This variety allows you to tailor your insurance to your preferences.

AAMI also presents an array of discounts to their customers, including incentives for safe driving, exclusive online promo codes, and potential savings of up to 10% for those who have successfully completed a skilled driver’s test.

Pros:

• Good coverage for personal effects, up to $1,000 claimable, and $500 for baby seats.
• Discounts up to $50 on Comprehensive and $20 on third-party insurance when purchasing online.
• Up to 21-day hire car coverage after theft, longer than some competitors.

Cons:

• No choice of repairer allowed.
• Limited online claim option, only available for Comprehensive Insurance.

ING

ING’s Comprehensive Auto Insurance plan provides the typical coverage elements and additional options that drivers usually encounter in auto insurance, like protection against theft, coverage for accidental damage, and the option to include roadside assistance in the policy.

Regarding the claims process, clients have the flexibility to file claims through the online portal or a dedicated claims hotline.

Regarding cost reductions, ING extends a 15% discount for a clean claims record, which is integrated into the policy, as well as a 15% online discount for the initial year.

Pros:

• Online purchase discount: Starting July 2023, ING offers a 15% discount on first-year premiums for online car insurance purchases.
• Flexible payment options: Choose monthly or annual payments for cost savings.
• Agreed or market value coverage: Select your preferred value for Comprehensive Car Insurance policies.

Cons:

• Fixed excess on Third Party policies: No option to reduce excess for Third Party coverage.
• No rental vehicle coverage: ING doesn’t provide liability cover for hired replacement cars during repairs.

Virgin Money

A Virgin Money Comprehensive Car Insurance policy provides extensive support during emergencies. It offers coverage for travel and accommodation expenses post-accident, with a daily limit of $200 (up to $1,000 in total). Additionally, it includes up to $500 for emergency repairs and up to 14 days of hire car coverage (up to $1,000) to keep you mobile.

Hire car coverage is automatically included after theft or non-fault accidents but is available as an optional add-on for at-fault accidents. Purchasing the policy online gives you a 15% discount on your first annual premium (subject to terms and conditions). Furthermore, maintaining a claims-free record can lead to a no-claims discount of up to 15%. It may increase with each consecutive claim-free year but can decrease if you file a claim.

Pros:

• Extensive optional extras available
• Roadside assistance add-on for all cover levels
• Death benefit included in standard third-party policies and Price Saver Comprehensive plan

Cons:

• Personal effects cover limited to $500 (July 2023)
• Limited caravan coverage (Price Saver Comprehensive)
• Trailers covered up to $500 (Price Promise Comprehensive)

RAA

The RAA’s comprehensive auto insurance plan offers unlimited windscreen and window repair or replacement without any deductible. It covers theft, malicious damage (including up to $1,000 for stolen personal effects), fire, flood, hail damage, and more. Additionally, this policy includes a new car replacement if your vehicle is declared a total loss, as long as it’s under two years old and you’re the original owner. You have the freedom to choose your preferred repairer, and a lifetime guarantee backs authorized repairs for your vehicle. Furthermore, you gain access to exclusive RAA membership benefits, making the RAA comprehensive auto insurance policy a worthwhile choice.

Pros:

• Lifetime vehicle replacement for total loss
• Unlimited windscreen, window, and roof glass repairs/replacement
• Lifetime repair guarantee as long as you insure with RAA
• Generous $1,000 coverage for personal effects

Cons:

• Limited post-incident hire car coverage (not for accidents)
• Few optional extras, only one related to car hire on comprehensive policies.

QBE

QBE’s comprehensive auto coverage provides a wide array of advantages alongside convenient add-ons at a competitive rate. You can benefit from a new-for-old vehicle replacement (applicable to cars under 3 years old and driven up to 60,000 km), protection against accidental harm, fire, theft, weather-related damage, essential repairs capped at $500, and emergency transportation and lodging coverage up to $1,000. Plus, there’s a bonus $75 deduction when you buy your policy through the Internet.

Pros:

• Up to $30 million property damage cover: Higher than many other insurers offering $20 million.
• New-for-old replacement within 3 years: Qualifying cars can be replaced if declared a total loss.
• Choice of agreed or market value: Flexible options for insuring your vehicle.

Cons:

• Limited Fire and theft cover: Less comprehensive compared to some other insurers.
• No roadside assistance available: Additional roadside assistance from another provider is required.

Which type of auto insurance is first class in Australia?

Before selecting an insurer, we advise you to decide the type of insurance that is best for your needs. Australia offers three major types of auto insurance.

1. Compulsory Third Party (CTP) Insurance:

CTP insurance is mandatory for all Australian drivers in every state and territory. It provides financial protection if you injure or cause harm to someone in an accident. However, it doesn’t cover damage to other people’s property or your vehicle.

2. Comprehensive Car Insurance:

Comprehensive insurance is the most extensive option, offering coverage for your own vehicle and other people’s property. While it provides broad protection, it tends to be more expensive. Consider comprehensive insurance if you need robust financial security, struggle to cover repair costs, or have a financed vehicle.

3. Third Party Car Insurance:

This type covers damage to another person’s property, making it suitable if your car’s value is low and you can manage without it for a while. Some policies may include fire and theft coverage for your vehicle. It’s a budget-friendly option with fewer extras compared to comprehensive insurance.

Best Car Insurance Companies in Australia – FAQs