In Australia, to legally drive, you need to have at least one type of insurance: Compulsory Third Party (CTP) insurance. However, with so many car insurance options available, finding the right provider can be tricky.
Choosing a cheaper insurance option may seem appealing, but it can sometimes mean less coverage, which could cost you more in the long run.
To help you make a better decision, Insurance Business reviewed data from one of Australia’s largest consumer opinion platforms. By analyzing thousands of reviews from real customers, we’ve identified the top car insurance companies that offer the best protection.
Whether you’re looking for a reliable insurer or helping someone else choose, this guide can be a useful resource. Insurance professionals can also use it to support their clients in making informed decisions.
Here are the 10 best car insurance companies in Australia, as rated by their customers.
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Why Do You Need Car Insurance?
- Legal Requirement: In Australia, having at least Compulsory Third Party (CTP) insurance is mandatory to drive legally. This insurance covers injury or death caused to others in an accident where you are at fault.
- Financial Protection: Car insurance helps protect you from significant financial loss due to accidents, theft, or damage to your vehicle. Without insurance, you could be responsible for paying for repairs or medical bills out of pocket.
- Peace of Mind: Knowing that you have insurance coverage can provide peace of mind while driving. You can feel more secure, knowing that you’re protected in case of unexpected events.
- Protection Against Liability: If you’re found liable for an accident that causes injury or damage to others, car insurance can cover those costs, protecting your finances and assets.
- Coverage for Your Vehicle: Comprehensive insurance covers damage to your own vehicle, whether from an accident, theft, or natural disasters, ensuring that you can repair or replace your car without a heavy financial burden.
- Support During Claims: Most insurance companies offer support and assistance during the claims process, helping you navigate the steps to get your vehicle repaired or replaced.
What are the best car insurance companies in Australia?
To determine which car insurance companies are most popular with drivers, we reviewed data from ProductReview.com.au, a trusted customer opinion website. These are the insurers that received the highest star ratings (with five stars being the best) based on feedback from thousands of customers.
1. Australian Seniors
Australian Seniors earned top marks in value for money, transparency, and customer service. Policyholders appreciate the insurer’s competitive rates and “helpful and attentive” support, especially over the phone. Customers also praise their fast claims process, which usually takes between one to four weeks.
Specializing in insurance for those over 50, Australian Seniors offers standard car insurance with optional extras like roadside assistance and hire car coverage. Their policies are backed by Hollard.
For more details on car insurance for seniors and pensioners, check out this guide.
2. AWN
Australian Warranty Network (AWN) specializes in add-on insurance, focusing on mechanical breakdown coverage to supplement regular car policies. The company is praised for its “prompt and professional” customer service, along with a quick and easy claims process.
As a wholesale insurance broker, AWN provides policies to agents, who then offer them to the public. Based in Queensland, its policies are underwritten by Lloyd’s.
3. Kogan Insurance
In addition to car insurance, Kogan offers home, pet, life, and travel policies. Based in Melbourne, Kogan is recognized as one of Australia’s top car insurers for customer experience.
The company earned high marks for pricing and transparency, and customers appreciate the generous discount options. Kogan provides all types of standard car insurance, with its policies underwritten by QBE.
4. ahm
Although best known as one of Australia’s largest health insurers, Medibank-backed ahm is also a popular choice for drivers who want customizable coverage. Customers appreciate ahm’s flexible policies, excellent customer service, and fast claims process. The company also offers affordable rates.
Based in Melbourne, ahm provides third-party and comprehensive car insurance. It’s known for offering instant coverage and a free year of roadside assistance with new policies.
5. Youi
Queensland-based Youi is one of Australia’s largest car insurers, offering comprehensive, third-party property damage (TPPD), and third-party fire and theft (TPFT) policies. The company also provides roadside assistance and hire car coverage.
Customers appreciate how quickly and efficiently their policies were set up by “friendly and informative” staff. They also value the insurer’s prompt response to claims.
6. Budget Direct
Many customers praise Budget Direct for its competitive premiums and good customer service. Based in Brisbane, its policies are underwritten by Auto & General Services.
Budget Direct offers third-party and comprehensive car insurance. You can also limit coverage to drivers over a certain age. The company provides a lifetime guarantee on authorized repairs as long as you own the car.
7. Oceania Insurance
Oceania Insurance, a digital car insurer backed by Auto & General, offers comprehensive, third-party property damage (TPPD), and third-party fire and theft (TPFT) coverage.
Most customers appreciate its competitive rates, good customer service, and high transparency ratings.
8. Huddle
Insurtech Huddle lets you get quotes and sign up for a policy in just 15 minutes. It has received high ratings for pricing, customer service, and transparency. Customers also appreciate how efficiently the company handles claims.
Backed by Hollard, Huddle offers comprehensive and third-party property damage (TPPD) insurance. Drivers can also add roadside assistance to their policies.
9. Real Insurance
Real Insurance, the retail arm of the major insurer Hollard, offers not only auto coverage but also home, life, and pet insurance.
Based in Baulkham Hills, Real Insurance is recognized as one of the best car insurance companies in Australia for customer satisfaction. Customers appreciate its affordable premiums and efficient claims process. The company provides a range of standard and optional coverage options.
10. Enthusiast Motor Insurance
Based in Sydney, Enthusiast Motor Insurance specializes in auto coverage, offering third-party property damage (TPPD) and comprehensive policies for various vehicles, including classic, show, modified, and imported cars. Its policies are underwritten by Assetinsure.
Enthusiast is recognized in the industry for providing competitively priced car insurance and has received high ratings for transparency and customer service.
Here’s a summary of the best car insurance companies in Australia based on customer feedback.
How Does Car Insurance Work in Australia?
There are four main types of car insurance in Australia:
1. Compulsory Third Party (CTP) Insurance
CTP insurance is mandatory in every state and territory. It’s called green slip insurance in New South Wales and transport accident charge (TAC) in Victoria. This insurance helps cover costs if you are found responsible for an accident that causes injury or death to someone else.
However, CTP insurance does not cover injuries to you or your passengers, nor does it pay for damage to your vehicle or property. You pay for this insurance when you renew your vehicle registration.
Here’s a simplified and optimized version of the entire passage:
2. Comprehensive Insurance
Comprehensive insurance is often the most expensive type of coverage, but it offers the broadest protection. It covers damages to your car and to other people’s vehicles and property, regardless of who is at fault. This policy also protects against theft, vandalism, storm or hail damage, and accidental losses.
3. Third Party Property Damage (TPPD)
TPPD insurance covers the cost to repair someone else’s property, including their vehicle, in the event of an accident. However, it does not cover any damage to your own vehicle. If the accident involves an uninsured driver, some insurers may only pay up to a certain limit.
4. Third Party Fire & Theft (TPFT)
TPFT insurance includes the same coverage as TPPD but adds protection for repair or replacement costs if your vehicle is stolen or damaged by fire, up to a specified limit.
Downsides of Car Insurance
- Costly Premiums: Car insurance can be expensive, and premiums can vary significantly based on factors like your age, driving record, and the type of coverage you choose. For some drivers, this cost can be a financial burden.
- Complex Policies: Understanding the different types of coverage, exclusions, and terms can be confusing. Some drivers may struggle to find a policy that meets their needs without being over or under-insured.
- Deductibles: Many policies come with deductibles, which is the amount you need to pay out of pocket before your insurance coverage kicks in. This can lead to unexpected costs when you need to make a claim.
- Premium Increases: Filing a claim can lead to increased premiums in the future. Insurers often view claims as a sign of higher risk, which can make it more expensive to maintain coverage.
- Limited Coverage for Certain Incidents: Some policies may not cover specific events, such as natural disasters or vandalism, unless you have comprehensive coverage, which can add to your premium costs.
- Time-Consuming Claims Process: The process of filing a claim and getting reimbursed or repairs can be time-consuming and frustrating, especially if there are disputes with the insurer over coverage.
- Potential for Denied Claims: There may be instances where a claim is denied due to policy exclusions or misunderstandings. This can leave you without coverage when you need it most.
- Inflexible Policies: Some insurers may not allow you to customize your policy as much as you’d like, limiting your options for tailoring coverage to fit your unique needs.
- Risk of Overpaying: Without proper research and comparison, drivers might end up paying more for coverage than necessary or choosing a policy that doesn’t provide adequate protection
How Are Car Insurance Premiums Calculated in Australia?
When calculating premiums, car insurance companies consider several factors, making it hard to give a one-size-fits-all estimate. Common factors include:
- Vehicle’s Market Value: Insurers assess your car’s age, make, model, condition, and mileage to determine its market value, which is usually the biggest influence on premiums. Some insurers may allow coverage for accessories but with limits.
- Level of Coverage: You can enhance your protection by adding optional extras, such as roadside assistance or rental car cover, which can affect your premiums. Some extras may already be included in comprehensive car insurance.
- Driver’s Age: Young drivers are often seen as higher risk, resulting in higher premiums compared to older drivers. If you add a teenage driver to your policy, it may raise your premiums depending on their driving history.
- Driver’s Gender: Statistically, men are more likely to be involved in accidents, which is why insurance rates for male drivers tend to be higher.
- Driving Record and Claims History: Past accidents and claims can raise insurance rates. Safe drivers with clean records often receive discounted premiums.
How Can You Get Cheap Car Insurance in Australia?
While car insurance premiums are based on an individual’s risk level, each driver’s situation is unique. An insurer offering affordable coverage for one person might be more expensive for another. Here are some tips to access cheaper car insurance:
- Maintain a Clean Driving Record: A spotless record indicates to insurers that you’re less likely to have an accident, which can lead to lower costs.
- Buy Only What You Need: Assess your needs before purchasing add-ons. A basic plan may provide sufficient coverage without breaking the bank.
- Be Strategic with Claims: Each claim can impact your premiums during renewal. Be thoughtful about what you choose to claim.
- Secure Your Vehicle: Taking steps to improve your car’s security can lead to discounts from insurers.
- Bundle Policies: Many insurers offer multi-policy discounts if you take out two or more types of coverage with them.
- Choose an Affordable Vehicle: Opting for a car that’s inexpensive to repair and maintain can help lower your premiums.
- Pay Annually: Insurers often give discounts for paying premiums in one lump sum, as it reduces the risk of missed monthly payments.
- Consider Increasing Your Excess: A higher excess can lower your premiums, but it also means you’ll pay more out-of-pocket in the event of an accident.
- Look for Pay-as-You-Drive Policies: Also known as usage-based insurance, this charges you based on the distance you travel, making it ideal for those who don’t drive often.
- Avoid Auto-Renewing Your Policy: Regularly review your coverage and shop around to ensure you’re still getting good value from your current policy.
If you’re interested in more tips for saving on car insurance, check out our guide on finding cheap car insurance in Australia.
Share Your Experience!
Have you had experience with any of the insurers on our best car insurance companies list? We’d love to hear your story in the comments below!