Our Pick Of The Best Comprehensive Car Insurance Providers In 2024

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

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 any exclusions and extras.

There were 16 key criteria that were analysed for each insurer to allow for a fair comparison, which were:

• 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, Product Review?
• 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, or does the insurance provider make that choice?
• Accidental damage: any cover provided for accidental damage to the vehicle?
• Exclusions: whether there are any exclusions on a policy, ranging from mechanical failure to drunk 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: considering whether the provider will cover transport, free towing, accommodation and the like in the event of an accident, along with any possible limits or conditions
• Windscreens: whether the comprehensive car insurance provider automatically included cover for windscreens
• No claims bonus: if the insurer offered discounts to drivers who don’t make claims and, if so, what was the value of the discount?
• Drive less, pay less: if the insurer offered discounts to those who drive their car less than the average driver, the value if so, or whether kilometres travelled annually is automatically factored into the premium
• 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, being that they will replace your car with a similar make and model if it is written off; and
• Customer service: the comprehensive car insurance provider’s customer service capabilities, including how easy it is to make a claim.

These 16 variables were compared to then complete an overall ranking of each comprehensive car insurance provider. Each provider was ranked between 1-5, with the leading providers (being those ranked 3.5 or higher) included in the above best-of list, along with what (or who) they are best for.

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: 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, it goes directly through the relevant state government and is automatically included in 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.

The third-party property damage cover is the most basic (and therefore cheapest) type of 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 explainer on third-party property damage.

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 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 more costly than CTP, but offers a much broader range of protection for Australian drivers.

As with any insurance policy, the type of cover you receive depends on the provider and plan you have chosen. Typically, a comprehensive car insurance policy will include the following, either automatically or as an additional add-on:

Hire car cover

A common feature of comprehensive car insurance policies is the availability of a hire car should your car be in need of repairs and off the road at the mechanics. 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 for an additional cost.

Roadside assistance

Roadside assistance is another feature of comprehensive car insurance that is sometimes bundled into your policy, and other times needs to be purchased as an addition. It is worthy to have, 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 from provider to provider but, as the name suggests, it refers to what your provider will do for you immediately after an accident–while your claims are being processed. Often, this includes towing your vehicle from the site of the accident and providing you with transport to the repairer or other designated destination. Some providers will even cover accommodation if the accident has happened a certain distance from home, such as 100kms away.

Cover for break-ins

Many people only think of car accidents when they think of car insurance, but your belongings all hold their own value. Break-ins pose a real threat, whether your car is parked down the street or even right in your garage while you’re on a holiday. These personal belongings are covered up to a certain monetary value in comprehensive car insurance policies, usually to around $500-$1000.

New-for-old replacement cover

New-for-old replacement cover refers to instances where your car insurance provider will replace your car with a similar make and model of equal value if your own car is written off after an insurable event.

Many comprehensive car insurance policies offer new-for-old cover, meaning they will replace your car with a similar make and model of equal value after an insurable event. This is particularly useful for pricer vehicles or for people still paying off a car loan (you don’t want to add to that debt when finding a new vehicle).

Discounts are common in the car insurance world, with many providers choosing to reward drivers with lower costs on their premiums for different reasons–such as for being a safe driver with no history of making claims, or for not being a frequent user of their car. The different types of discounts are explained below.

No claim bonus or discount

A no claim bonus is a discount on your car insurance, which is given to drivers with a history of not making claims. The discount increases each year if the driver continues to not claim, usually up to a maximum number of years or a maximum 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 bonus instead–such as any demerit point losses or traffic offences.

How the no claims bonus affects your insurance policy; how claiming affects the bonus; and any other terms and conditions of the bonus are then subject to each provider.

Drive less, pay less

Some drivers may use their car less than others, only taking it out of the garage for special trips or weekend drives. For those, certain comprehensive car insurance providers will offer a ‘drive less, pay less’ deal by offering discounts on a policy.

Some comprehensive car insurance providers may offer this discount according to kilometres travelled per year, while others may void the discount once the speedometre reaches a certain amount of kilometres after taking out the policy.

Other discounts

As with any insurance policy, there are also other discounts available from providers that have nothing to do with your driving record. This includes discounts when purchasing a policy online; discounts when you already have a different policy with the same provider, such as travel insurance; and other promotional discounts that may occur throughout the year.

Discounts–and all other benefits and exclusions of a comprehensive car insurance policy–must be carefully understood to make sure you’re not paying for more than you need, or that you’re accessing the full benefits. To ensure you know exactly what you’re entitled to in your policy, always carefully read the product disclosure statement.

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 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, which was up from 10.5 million vehicle policies in the year to October 2022.

“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.