How to compare car insurance for your needs

Cars mean convenience, comfort and mobility for many people, however staying safe on the road is paramount. You never know what’s around that corner and accidents can happen when you least expect it, which is why many people choose to insure their vehicles. But there’s more to car insurance than just choosing the cheapest product. Here, we’ve outlined some helpful tips for you to consider when choosing and comparing car insurance. Remember to do your own research or get professional advice, and always read the relevant PDS before choosing a policy. Here are some things you might want to consider before you hit the road.

What are the different types of car insurance available?

Here are the main types of car insurance available:

  • Comprehensive: Covers damage to vehicles and property (including your own) even in an accident where you are at fault.  It also covers your car if it's stolen or damaged by fire, flood or vandalism.
  • Third party property, fire & theft: Covers damage to other people’s property and vehicles in an accident where you’re at fault. Doesn’t cover damage to your own vehicle and property, but you are covered if your car is stolen or damaged by fire.
  • Third party property damage: Provides cover for damage to other people’s vehicles and property in an accident where you are at fault. It doesn’t cover any damage to your own car.
  • Compulsory third party (CTP) insurance – included in your car registration cost (except in New South Wales, where you buy it separately). Also called green slip insurance. It covers the costs of compensation claims if you injure or kill someone in a car accident.

Depending on your current circumstances and how often you drive, there are a few considerations you may need to take into account when choosing the car insurance option that’s best for you.

Agreed vs. market value

With comprehensive insurance, a potential benefit might be that you can choose how your car is valued. The value is the amount you'll get if your car is written off or stolen:

  • Agreed value – a fixed amount that's decided by you and your insurer.
  • Market value – the amount your car would have sold for, at the time of the accident.

If you choose market value, you won’t know exactly how much you'll get if the car is written off until you make a claim, as it will be the value in the market at that time, and you can't change the amount. If you choose an agreed value, you'll know the exact amount you will receive when you claim, however you will usually pay a higher premium.

Renewing your policy

In the weeks leading up to your policy renewal, your provider will either email or post you a renewal notice. From there, you can either call them up to renew your policy, or for eligible policies you may be able to renew online through a member portal. Some policies will even automatically renew on periodic payments without you having to do anything. If you’re unsure, reach out to your provider and they will be able to assist you manage the whole process. It’s really important that you clarify and ask questions you might have before you renew your policy. Remember too, that any accidents you have had could affect the premiums payable on your policy.

You might also want to shop around and compare car insurance around the time your policy is set to renew so you can see if there’s a policy available that provides cover suitable to you for a comparable premium. A bit of research now could save you money in the long run!

There’s a provider for everyone

It’s so easy to start comparing car insurance policies right now. With Choosi you just answer a few simple questions about your vehicle and the cover you want, and we’ll help you compare car insurance options from a range of brands you know and trust.

Cover for the unpredictable things that can happen on the road

Everyone wants to bdfe in control, but unfortunately when you are on the road unpredictable things can happen. That’s why having car insurance can help give you peace of mind.

Choosi makes it easy to compare, choose and apply for car insurance. You can request quotes right now online, or call 13 55 55 for more information.

Choosi does not compare the whole market. This article is an opinion only, provided for general information purposes and shouldn’t be considered or relied upon as professional or personal advice. If you have legal, tax, or financial questions, you should contact an appropriate professional.

Posted: 24 Jun 2021

This is general information only and does not take into account your personal objectives, financial situation or needs. You should consider the relevant PDS available on this website prior to purchasing any product. Choosi offers insurance products from a range of brands but does not compare all products available in the market.

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