Compare car insurance quotes
To compare car insurance properly, choose the level of cover first, then get quotes with the same excess, drivers, valuation and extras from several insurers. The price for identical cover can vary widely, and no insurer is cheapest for every driver.
This guide explains what each level pays for, what sets your premium, how to cut the price without cutting the cover you need, and what changes from state to state.
By Better Rate Mate Editorial Team · Last reviewed
4
Cover levels explained
8
State and territory guides
8%
Premium rise to July 2025 (Moneysmart)
The four types of car insurance
Australian car insurance comes in three optional levels plus compulsory CTP. The optional levels stack: each one includes everything in the level below it and adds more cover for your own car.
The question that decides the level is simple, and Moneysmart puts it well: could you get by if your car were written off or stolen tomorrow, and could you pay for the damage if you hit someone else's? If the answer to the first is no, you need comprehensive. If the answer to the second is no, you need at least third party property damage.
Comprehensive
Covers: Your car and other people's property, including accidents you cause, theft, fire, storm, hail and flood.
Suits: Any car you could not comfortably repair or replace yourself, and any car under finance.
Third party, fire and theft
Covers: Other people's property, plus your own car if it is stolen or burns. No cover for accident or weather damage to your car.
Suits: A mid-value car where theft is the main worry and weather risk is low.
Third party property damage
Covers: Damage your car causes to other people's cars and property, often just called third party car insurance. Nothing for your own car.
Suits: An older or low-value car you could afford to lose.
CTP (compulsory third party)
Covers: Injury to people caused by your vehicle. Required to register a car. Never covers vehicle damage.
Suits: Every registered vehicle. How you buy it depends on your state.
| What happens | Comprehensive | Third party, fire and theft | Third party property damage | CTP (compulsory) |
|---|---|---|---|---|
| You damage someone else's car or property | Covered | Covered | Covered | Not covered |
| Your car is damaged in an accident you caused | Covered | Not covered | Not covered | Not covered |
| Your car is hit by another driver who is at fault | Covered | Claim against the other driver; many policies add a capped benefit if they are identified and uninsured | Same as fire and theft | Not covered |
| Your car is stolen | Covered | Covered | Not covered | Not covered |
| Your car is damaged by fire | Covered | Covered | Not covered | Not covered |
| Storm, hail or flood damages your car | Covered | Not covered | Not covered | Not covered |
| You hit an animal or leave the road with nobody else involved | Covered | Not covered | Not covered | Not covered |
| Someone is injured or killed | Not covered (that is CTP) | Not covered (that is CTP) | Not covered (that is CTP) | Covered |
For the full detail on each level, see our guides to comprehensive car insurance,third party, fire and theft andthird party property damage. How you buy CTP depends on your state: see how CTP works in every state,compare Green Slips in NSW, or read aboutthe TAC charge in Victoria.
How to compare car insurance quotes like for like
Two quotes are only comparable when everything except the insurer is the same. A premium that looks noticeably cheaper can simply have a higher excess, a market-value payout instead of agreed value, or no hire car. Work through it in this order.
- Pick the cover level using the table above. Do not let price push you down a level you need.
- Fix the details that drive price: everyone who drives the car, the overnight address and parking, annual kilometres, and how the car is used.
- Choose the excess and valuation you want, and use the same on every quote.
- Decide on extras such as a hire car after an accident, windscreen cover or roadside assistance.
- Get at least three quotes, including from insurers that only sell direct.
- Read the exclusions and limits of the two cheapest, not just the price. Moneysmart's checklist starts with the exclusions.
- Check the insurer behind the brand. Moneysmart notes the same underwriter can sell near-identical cover under different brand names at different prices.
| Detail | Why it changes the price | What to check |
|---|---|---|
| Cover level | Comprehensive costs more because it pays for your own car | Every quote is the same level |
| Basic excess | A higher excess lowers the premium and raises what you pay at claim time | Same basic excess, and note any age or inexperienced-driver excess |
| Agreed or market value | Agreed value fixes the payout and usually costs more | Same valuation type, and the same agreed amount |
| Drivers | Young, inexperienced or unlisted drivers carry higher excesses and premiums | List everyone who drives the car regularly, on every quote |
| Overnight address and parking | Postcode and garaging are strong rating factors | The address where the car actually sleeps |
| Kilometres per year | More driving means more exposure | An honest estimate, the same on every quote |
| Optional extras | Hire car, windscreen and roadside cover add cost | Either include them on every quote or none |
| Payment frequency | Monthly instalments can cost 10–20% more over a year (Moneysmart) | Compare the annual total, not the monthly figure |
Excesses deserve a closer look because they stack. A basic excess can have an age excess, an inexperienced-driver excess and an unlisted-driver excess added on top. Ourcar insurance excess guide explains each one, and agreed value vs market valueexplains the valuation choice.
Who issues each car insurance brand
Many car insurance brands are issued by the same few insurers. AAI Limited, for example, issues AAMI, GIO, Suncorp Insurance, Bingle, Apia and Shannons policies, and Auto & General issues Budget Direct, Coles and Qantas car insurance, while Hollard stands behind ahm, Everyday, Huddle and Real Insurance. The issuer is the company that pays your claim, and it is named in the Product Disclosure Statement (PDS) of every policy.
Moneysmart notes that the same underwriter can sell near-identical cover under different brand names at different prices, so two quotes from brands with the same issuer are still worth comparing on the excess, valuation and inclusions. The table lists the issuer behind each of the main brands.
| Brand | Issued by | AFSL | Sold or arranged by |
|---|---|---|---|
| AAMI | AAI Limited | 230859 | The insurer itself |
| ahm | The Hollard Insurance Company Pty Ltd | 241436 | Open Insurance Pty Ltd (AFSL 451712), which issues policies under Hollard's binding authority; ahm, a business of Medibank Private, promotes it as Open's authorised representative |
| Allianz | Allianz Australia Insurance Limited | 234708 | The insurer itself |
| Apia | AAI Limited | 230859 | Australian Pensioners Insurance Agency Pty Ltd, as AAI's agent |
| Bingle | AAI Limited | 230859 | The insurer itself |
| Budget Direct | Auto & General Insurance Company Limited | 285571 | Auto & General Services Pty Ltd |
| CGU | Insurance Australia Limited for policies sold by CGU's business partners; CGU Australia Pty Ltd for policies sold by brokers. Victorian direct policies moved under a Federal Court approved scheme are issued by Insurance Manufacturers of Australia Pty Limited (AFSL 227678) | 227681 (partners); 700014 (brokers) | Brokers and business partners only: CGU stopped selling new car insurance directly on 27 June 2025 |
| Coles Insurance | Auto & General Insurance Company Limited (policies from 1 September 2024) | 285571 | Auto & General Services Pty Ltd, with Coles and Flybuys as its authorised representatives |
| Everyday Insurance (Woolworths) | The Hollard Insurance Company Pty Ltd | 241436 | Woolworths Group Limited, as an authorised representative |
| GIO | AAI Limited | 230859 | The insurer itself |
| Huddle | The Hollard Insurance Company Pty Ltd | 241436 | Huddle Insurance, a business name of Open Insurance Pty Ltd (AFSL 451712), as Hollard's agent under a binding authority |
| NRMA Insurance | Insurance Australia Limited | 227681 | The insurer itself |
| Qantas car insurance | Auto & General Insurance Company Limited | 285571 | Qantas Airways Limited, as an authorised representative of Auto & General Services |
| QBE | QBE Insurance (Australia) Limited | 239545 | The insurer itself |
| RAA (SA) | Allianz South Australia Insurance Limited, formerly RAA Insurance Limited | 232525 | Royal Automobile Association of SA, as the insurer's agent |
| RAC (WA) | RAC Insurance Pty Limited | 231222 | RAC Distribution Pty Ltd |
| RACQ | RACQ Insurance Limited | 233082 | RACQ Operations Pty Ltd |
| RACV | Insurance Manufacturers of Australia Pty Limited | 227678 | RACV Insurance Services Pty Ltd |
| Real Insurance | The Hollard Insurance Company Pty Ltd | 241436 | Greenstone Financial Services Pty Ltd, trading as Real Insurance |
| ROLLiN' | Insurance Australia Limited | 227681 | The insurer itself |
| Shannons | AAI Limited | 230859 | Shannons Pty Limited, as AAI's agent |
| Suncorp Insurance | AAI Limited | 230859 | The insurer itself |
| Virgin Money | Zurich Australian Insurance Limited | 232507 | Honey Insurance Pty Ltd (AFSL 528244), an underwriting agency with the insurer's binding authority; Virgin Money Australia, a division of Bank of Queensland, provides services on Honey's behalf |
| Youi | Youi Pty Ltd | 316511 | The insurer itself |
What sets your car insurance premium
Insurers price on how likely you are to claim and how much a claim would cost. Moneysmart lists the car's type and value, who drives it, how often and how far, where you live and where the car is kept, the cover type and the excess. In practice they fall into six groups.
Who drives
Age, years licensed, claims history and driving record. Drivers under 25 and anyone with less than two years on a full licence usually pay more and face extra excesses.
The car
Make, model, age, value, repair costs, safety features and how attractive it is to thieves. The same driver can pay very different amounts for two cars of similar value.
Where it lives
Your postcode reflects local theft, collision and weather claims, and whether the car is garaged, in a driveway or on the street is asked separately.
How much you drive
Annual kilometres and what the car is used for. Business or rideshare use needs to be declared and changes the price.
The policy you choose
Cover level, agreed or market value, excess, and extras such as a hire car, windscreen cover or roadside assistance.
Your history with insurers
No claim bonus or rating, previous claims, and whether a policy has been cancelled or refused before.
Location matters more than many drivers expect. In 2025 Victoria recorded 24,929 victims of motor vehicle theft, almost twice the New South Wales figure, and single storm events in Sydney, Victoria and south-east Queensland have each produced more than 15,000 motor claims. Those local claims histories flow straight into postcode pricing, which is why ourstate guides set out the numbers for each state.
How to get cheap car insurance without being underinsured
Cheap car insurance is the lowest price for the cover you actually need. Stepping down a level or choosing an excess you cannot pay is not a saving; it moves the cost to the day something goes wrong. These are the levers that work.
One lever to use carefully is the no claim bonus. Moneysmart notes a 2015 ASIC review found that for most brands between 90% and 99% of policyholders were on the highest discount rating, so a "maximum bonus" is not the advantage it sounds. Ourno claim bonus guide explains when protecting it is worth paying for.
What car insurance does not cover
Even comprehensive cover has limits. These exclusions appear in some form in most Australian policies, and they are the most common reasons claims are reduced or refused.
- Mechanical or electrical breakdown, wear and tear, rust and depreciation
- Damage while the driver was unlicensed, over the legal alcohol limit or drug-affected
- Damage while the car was unregistered or unroadworthy
- Use you did not declare, such as rideshare, deliveries or business use
- Undeclared modifications, and damage caused by deliberately driving into floodwater on many policies
- Injury to people, which is the job of CTP
If a claim is refused and you disagree, make a complaint to the insurer's internal dispute resolution team first. If that does not resolve it, the Australian Financial Complaints Authority (AFCA) provides free, independent dispute resolution. The Insurance Council notes that disputes over vehicle valuations rank among the most common complaints AFCA receives.
Car insurance by state
Optional car insurance works the same way everywhere in Australia, and a policy covers you interstate. What differs is the compulsory injury cover, whether you choose who provides it, and the local risks that drive prices.
| State | Compulsory injury cover | Choose the insurer? | Theft victims, 2025 | Road deaths per 100,000, 2025 |
|---|---|---|---|---|
| New South Wales | NSW Green Slip (CTP), bought before registering | Yes | 12,689 | 4.1 |
| Victoria | Victoria's TAC charge, in registration | No | 24,929 | 4.1 |
| Queensland | Queensland CTP, paid with registration | Yes | 17,214 | 5.4 |
| South Australia | South Australian CTP, paid with registration | Yes, since July 2019 | 3,414 | 4.6 |
| Western Australia | WA Motor Injury Insurance (ICWA) | No | 4,913 | 6.0 |
| Tasmania | Tasmania's MAIB premium, in registration | No | 1,336 | 7.6 |
| ACT | ACT MAI insurance, with registration | Yes | 821 | 1.9 |
| Northern Territory | NT MAC Scheme, funded through registration | No | 1,319 | 14.4 |
Find the right car cover for you
What you need depends on who drives, what the car is and how you use it. These guides go into each.
By driver and vehicle
- Learner DriversCar insurance for learner drivers
- P PlatersCar insurance for P platers
- Young & New DriversCar insurance for young drivers and under 25s
- Seniors & PensionersSeniors and pensioner car insurance
- 4WD Owners4WD and 4x4 insurance
- Business UseBusiness car insurance: business use, company cars and fleets
- Classic CarsClassic car insurance: agreed value, limited use and club rego
By cover type
- ComprehensiveComprehensive car insurance
- Third Party PropertyThird party car insurance: property damage cover explained
- Fire & TheftThird party, fire and theft car insurance
- CTPCompulsory third party (CTP) insurance: how it works in every state
- Roadside AssistanceCompare roadside assistance: motoring clubs and insurer add-ons
Car insurance guides
A note on comparison sites
Moneysmart makes a point worth repeating: insurance comparison websites are usually paid by the insurers they compare, and they do not include every product on the market. No comparison service, including this one, shows you every policy. Use comparison as a shortcut to a shortlist, then read the Product Disclosure Statement and Target Market Determination of the policy you choose before you buy.
Our guides describe how car insurance works and do not quote premiums, because prices change constantly and depend on the individual. Where we cite a figure, it comes from a public source listed at the end of the page, with the date we checked it.
Car insurance FAQs
What is the best website to compare car insurance?
The most useful comparison is the one that lets you compare the same cover, excess and drivers side by side. Moneysmart points out that comparison websites are usually paid by the insurers they compare and do not include every product, so check more than one source, including insurers that sell direct.
Who has the cheapest car insurance in Australia?
No insurer is cheapest for everyone. Each one weights age, postcode, car, driving history and excess differently, so the cheapest quote for one driver can be mid-range for the next. Comparing several like-for-like quotes is the only reliable way to find your cheapest.
Is there a government site to compare car insurance?
Only for compulsory third party (CTP) cover, in the four places where you choose a CTP insurer: SIRA's Green Slip Price Check in NSW, MAIC's Compare pricing tool in Queensland, the CTP Regulator's premium calculator and your renewal notice in South Australia, and the MAI Commission's published premium schedules in the ACT. For optional cover, Moneysmart explains how to compare policies and suggests the Insurance Council's find an insurer service to build a shortlist.
What are the tricks to get cheaper car insurance?
There are no tricks, but a few levers reliably work. Compare quotes at every renewal: ASIC-commissioned research found 74% of people with a renewal notice were quoted more than the year before. Ask your insurer to do better: 31% of people who asked got a lower premium without reducing their cover. Pay annually, because instalments can cost 10% to 20% more, choose your excess deliberately and drop extras you do not use. Understating who drives the car or where it is kept is not a saving, because it can lead to a reduced or refused claim.
What is the difference between comprehensive and third party car insurance?
Comprehensive covers damage to your own car as well as damage you cause to other people's property, including accidents you cause, theft, fire and weather. Third party property damage covers only the damage you cause to others. Third party, fire and theft adds cover for your own car if it is stolen or burns.
Is CTP the same as car insurance?
No. CTP is compulsory cover for injury to people and is required to register a car. It never pays for damage to any vehicle or property, so most drivers add at least third party property damage.
What is the best time to shop for car insurance?
Before your renewal date, when your insurer sends the renewal notice. That is when you can compare the new price against fresh quotes and switch without a gap in cover. Also compare when you buy a car, move house or add a driver, because each changes the price.
What should you not tell your insurance company?
Nothing you are asked about should be left out or misstated. Under section 20B of the Insurance Contracts Act 1984, which applies to consumer policies entered into from 5 October 2021, you have a duty to take reasonable care not to make a misrepresentation when you answer an insurer's questions. Giving wrong information about who drives the car, where it is kept, what it is used for or your claims history can lead to a reduced or refused claim and a cancelled policy. The one thing many policies do ask you not to do is admit fault at the scene of an accident; leave liability to the insurers.
Who underwrites AAMI car insurance?
AAI Limited (AFSL 230859), according to AAMI's car insurance Product Disclosure Statement. The same company issues GIO, Suncorp Insurance, Bingle, Apia and Shannons car insurance. The table above lists the issuer behind each of the main brands.
Is it better to pay car insurance monthly or yearly?
Yearly is usually cheaper. Moneysmart reports that paying by instalments could cost 10% to 20% more over the year. Monthly suits you if a lump sum would strain your budget.
Should I choose agreed value or market value?
Agreed value fixes the payout when you take out or renew the policy, which gives certainty and usually costs more. Market value is what the insurer assesses the car to be worth at the time of the claim. Whichever you choose, check the figure at every renewal.
Does car insurance cover other people driving my car?
Usually, if they are licensed and not excluded, but an extra excess often applies to young, inexperienced or unlisted drivers, and some cheaper policies cover listed drivers only. Check the excess table in your policy.
Why has my car insurance gone up?
Premiums have been rising across the market: Moneysmart reports motor vehicle insurance premiums rose 8% in the twelve months to July 2025. Repair costs, weather claims and theft all feed in. Your renewal is a prompt to compare, not a price you have to accept.
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