Top 10 Car Insurance Companies
Car insurance is a significant expense for many Australians, and finding the best value for your money matters more than ever in today's economy. However, less than 25% of car insurance policy holders rate their insurer as providing good value for money.
Compare & SaveFor those seeking car cover that shields you for everything from minor mishaps to major accidents, a comprehensive car insurance policy is the smart choice. Accidents are an unfortunate reality, with a whopping 64% of adult drivers having experienced at least one car accident, with speeding being the most common cause. There’s also theft to think about, and damage to property that isn’t yours (i.e. third party damage). Any or all of these incidents occur with alarming regularity across the country every day.
That’s why car insurance is essential for every driver in Australia, and our top ranked car insurance companies offer the most extensive protection against a wide range of risks. Australia boasts numerous car insurance providers, each offering varying levels of cover, plus a range of options to tailor your policy to your driving lifestyle and budget. With so many insurers and policies to compare, you can be overwhelmed by choice - but we’ve broken it down for you, by meticulously evaluating a mix of 10 car insurers from around the country. We’ve mixed the majors in with some of the more boutique insurers, because some niche insurers can offer you better value if you fit their target market.
Here's our top car insurance companies for 2024 so far, with their pros and cons:
1. Allianz
Do they offer a hire car: Yes
Do they offer you your choice of repairer: Yes (may require a second quote).
Allianz stands as one of Australia's premier insurance companies, offering comprehensive car insurance plans with top-notch features. Despite mixed reviews, Allianz provides excellent customer service through various channels.
Pros:
Choice of repairer.
New-for-old car replacement.
Live chat customer service.
Cons:
Personal items coverage limited to $500.
Some negative reviews.
2. Youi
Do they offer a hire car: Yes
Do they offer you your choice of repairer: Optional add-on.
Youi's Comprehensive Car Insurance receives stellar ratings, including free roadside assistance and coverage for various incidents.
Pros:
Free roadside assistance included.
High customer ratings.
New-for-old car replacement.
Cons:
Limited phone line availability.
Choice of repairer incurs extra cost.
Pricier premiums than most.
3. NRMA
Do they offer a hire car: Yes
Do they offer you your choice of repairer: Optional add-on
NRMA offers extensive benefits, including new-for-old car replacement and discounts. However, roadside assistance may require separate purchase.
Pros:
New-for-old car replacement.
Good discounts.
After-accident cover up to $1,000 per day.
Cons:
Roadside assistance limitations.
Some poor customer reviews.
4. AAMI
Do they offer a hire car: Yes
Do they offer you your choice of repairer: No
AAMI's Comprehensive Car Insurance allows policyholders to customise coverage and offers various discounts.
Pros:
Great discounts.
Choice of market or agreed value.
24/7 live chat customer service.
Cons:
Limited choice of repairer.
Some poor customer reviews.
5. Budget Direct
Do they offer a hire car: Yes
Do they offer you your choice of repairer: Optional add-on
Budget Direct offers extensive customer service capabilities and competitive pricing. They’re one of the largest insurers in the country.
Pros:
Good customer service.
Hire car cover.
15% online discount.
Cons:
Limitations on coverage options.
New-for-old car replacement under mileage limit.
6. RACV
Do they offer a hire car: Optional add-on
Do they offer you your choice of repairer: Optional add-on.
RACV offers customisable policies but may require add-ons for full coverage.
Pros:
Customisable policies.
Up to $1500 after-accident care.
Multi-policy discounts.
Cons:
Limited availability (only for Victorians).
Additional add-ons required for full coverage.
7. RACQ
Do they offer a hire car: Yes (if your car is stolen); Optional add-on (if your car is damaged)
Do they offer you your choice of repairer: Yes
RACQ provides comprehensive coverage tailored for over 1.7 million Queenslanders. They also have a roadside assistance product, and recently merged to become a bank.
Pros:
Emergency repairs without assessment.
Multi-policy discounts.
Cons:
Limited availability (only for Queenslanders).
Add-ons required for full coverage.
8. Stella Insurance
Do they offer a hire car: Optional add-on
Do they offer you your choice of repairer: No
Established in 2020, Stella provides gender-inclusive car insurance tailored to women's needs, while inclusive of men and non-binary individuals. Backed by QBE, Stella offers competitive rates, customer-focused service, and diverse policy benefits, prioritising driver satisfaction and convenience.
Pros:
Special coverage for damaged or stolen children's car seats.
No excess for specific claims.
Cons:
Limited repairer options.
Few optional extras available.
9. Carpeesh
Do they offer a hire car: Optional add-on
Do they offer you your choice of repairer: No
Carpeesh, an Australian car insurance company underwritten by RACQ, incentivises safe driving through reduced premiums. Utilising telematics technology, it accommodates diverse drivers, including young drivers, daily commuters, and those using vehicles for work, offering tailored policies to match individual driving behaviours. They also reward your safe driving behaviour with lower premiums.
Pros:
Tailored policies, including rideshare cover.
App tracks driving data for premium reduction.
Cons:
Limited coverage for personal effects.
No third-party policy option.
10. ahm
Do they offer a hire car: Yes
Do they offer you your choice of repairer: No
ahm, a branch of Medibank, stands out as a prominent insurance provider in Australia, renowned for its health insurance services. Besides health cover, ahm extends its offerings to include various insurance products, such as car insurance.
Pros:
Pay As You Drive option.
Comprehensive plan with optional extras.
Choice between agreed and market value.
Cons:
No choice of repairer.
Limited windscreen repair cover.
It's worth noting that price wasn't the sole criterion used to compile this list, as insurance premiums can differ significantly from one driver to another, and by location as well. That said, price can’t be ignored. Car insurance costs are undeniably on the rise, with drivers experiencing an average premium increase of 15% last year. Repair expenses are also soaring and supply chain disruptions persist, so you’re unlikely to see any reductions in premiums anytime soon, unless you shop around - which is always a good idea.
Comparing insurers and policies allows you to assess comprehensive car cover from the major insurers, such as ahm, Budget Direct and Youi - but comparison sites like Compare Club can also introduce you to some of the smaller insurers, where premiums may be lower due to the specialised nature of the drivers they choose to insure. Stella Insurance is one of these.
Ultimately, finding the best car insurance for you involves considering factors such as:
customer satisfaction,
value for money,
type and value of the policies on offer, and
ease of application.
By thoroughly assessing all of these aspects, you can select the most suitable policy for your needs and budget - or you can have Compare Club do it for you.
What factors determine your car insurance premium?
Target Market Determinations (TMDs): Since 2021, insurance customers have received Target Market Determinations (TMDs) alongside Product Disclosure Statements (PDS) for insurance policies. TMDs inform you about the type of customer a particular policy is designed for. For instance, a Young Driver policy may cater exclusively to those under 25, highlighting the importance of understanding policy specifics before making a purchase, especially if you're outside the insurer’s target demographic.
Personalised Premiums: Contrary to common belief, car insurance premiums are highly personalised. Even if you and your neighbour own the same car model and seek the same level of cover from the same insurer, your premiums could differ. This discrepancy arises because insurers assess the risk associated with covering each individual who might drive your car, leading to varied premiums.
Age, Gender, and Other Factors: Your age, gender, car colour, daily commute distance, driving history, and parking arrangements can significantly influence your car insurance premium. Young male drivers under 25 often face higher premiums due to statistics indicating a higher risk of accidents in this demographic. Moreover, car colour can impact premiums, with darker hues associated with increased crash risk. Similarly, your driving history, including previous claims, affects premium calculations, as does the number of kilometres you drive annually and the safety of your parking spot.
Mitigating Costs: While some factors affecting your premium are beyond your control, others offer opportunities for cost savings. For instance, reducing the number of kilometres you drive in a year can lower your premium, as can parking your car in a secure location. Additionally, comparing your insurance options online can help you secure a better deal by identifying insurers offering competitive rates and favourable policy features.
Understanding the factors influencing your car insurance premium empowers you to make informed decisions and potentially reduce the costs of your cover. While certain variables, like age and location, may be fixed, others, such as your driving habits and parking arrangements, can help you make a saving. By comparing insurance options online and exploring discounts, you can find a policy that not only fits your budget but also aligns with your needs and preferences.
Frequently Asked Questions
Is there a best car insurance policy in Australia?
No, the best policy varies for each individual. It's essential to compare options to find one that suits your needs and budget.
How much does comprehensive car insurance cost in Australia?
Comprehensive car insurance premiums vary widely in Australia, influenced by various factors such as your age, driving history, and location.
You could pay anywhere from $800 to $4000 annually, depending on your insurer, your driving record, location, and the specific policy inclusions offered by your insurer, like discounts for reduced driving or optional extra add-ons such as roadside assistance. While many opt to pay monthly premiums, paying your full premium upfront can get you a discount, as can buying your policy online.
Which is the best insurer for car insurance?
Some insurers boast remarkably loyal customer bases, with significant percentages of policy holders sticking with them for over a decade. Notable examples include NRMA and RACQ, each with 53% of customers showing long-term loyalty, followed by RACV (42%).
When it comes to claims experience, RACV and RACQ emerge as favourites among customers, with the majority rating their insurers' claims handling as above average or excellent. Other insurers with strong ratings in this regard include AAMI, NRMA, Budget Direct, and Allianz.
In terms of customer care, RACQ, and RACV stand out, with the majority of their customers feeling that their care is above average or excellent. Conversely, Allianz are perceived to provide lower levels of care, according to ACFA.
As for specific insurers, Youi earns accolades for its exceptional customer satisfaction, scoring high across various metrics. However, it's worth noting that Youi's premiums can be higher compared to others, and its roadside assistance only covers the first two call-outs per year.
Meanwhile, Budget Direct garners attention for its affordability and robust cover. Despite its lower premiums, Budget Direct maintains comprehensive policies comparable to more expensive options from major insurers like NRMA and AAMI. It’s one of the fastest-growing car insurers in the country, and while the quotes are often cheaper, it’s worth looking at all the inclusions to ensure you’re getting value for your money.
What’s the best car insurance for my car?
Choosing the best insurer depends on factors like policy features and value for money, as well as your specific car insurance needs. For instance, Youi could appeal to those needing robust roadside assistance. Ultimately, research is key to finding the right fit.
Should I keep my CTP and comprehensive cover with the same insurer?
Ultimately, that's up to you. While compulsory third-party (CTP) insurance is mandatory in Australia, opting for additional cover such as fire and theft or comprehensive insurance is a personal decision.
Is comprehensive car insurance worth it?
Comprehensive car insurance typically covers new-for-old replacements, repairs, theft, hire cars, and post-accident care, although the specifics vary by insurer. As premiums rise — and rise — weighing the worth of comprehensive car insurance is valid.
While costly, the alternative could prove more expensive in the long run, given the potential risks to you, your vehicle, or others. It's also worth considering how dependent you are on your vehicle for work and family - or not, as the case may be.
Why does comprehensive car insurance cost so much?
Comprehensive car insurance is designed to safeguard against a range of incidents, including theft, break-ins, and accidents. It's the most extensive cover you can get, covering fault and no-fault accidents, along with rising repair and replacement expenses. Shopping around and avoiding loyalty taxes can help mitigate the price of your premiums.
Sources
https://www.forbes.com/advisor/au/car-insurance/best-comprehensive-car-insurance-providers/
https://www.forbes.com/advisor/au/car-insurance/best-comprehensive-car-insurance-providers/
https://www.sbs.com.au/news/article/why-your-insurance-bills-are-going-up-and-what-you-can-do-about-it/4ma6uhse1
