Private Car Insurance in Australia: Quotes, Cover and Costs

Private car insurance is cover for your personal-use vehicle — separate from your compulsory CTP (Green Slip) — that helps pay for damage to your car, other people’s property, and risks like theft, fire and storms. It’s designed for everyday driving to work, the shops or weekends away, not commercial use like rideshare or courier work (which need different policies). The idea is simple: if something goes wrong, you’re not left footing a big bill.

This guide walks you through the essentials to buy with confidence: how private car insurance works in Australia, what’s covered and excluded, the difference between comprehensive and third party, optional add-ons, agreed vs market value, excesses, what affects your premium, how to get and compare quotes, smart ways to save, claims steps, and how private cover sits alongside CTP. Let’s get started.

How private car insurance works in Australia

At its core, private car insurance is a contract: you pay a premium (monthly or annually) and your insurer agrees to cover certain risks for a set period (usually 12 months). You choose a cover level (e.g. comprehensive or third party), pick how your car is valued (market or agreed value), set your excess, and decide on any optional add‑ons. Your Product Disclosure Statement (PDS) spells out what’s covered, what’s not, and how claims work.

When you get a quote, insurers ask about your car, where it’s kept, who drives it, driving history, annual kilometres and whether the vehicle is for private use only. Accurate disclosure matters — it affects both the price and your cover. If you claim, you’ll lodge details, pay any applicable excess, and the insurer will arrange assessment and repairs via their network or as allowed by your policy. CTP (Green Slip) remains separate and mandatory.

Cover options at a glance: comprehensive vs third party

When you’re buying private car insurance, you’re really choosing how much risk you want to keep versus pass to the insurer. Most policies fall into three clear tiers. The more comprehensive the cover, the broader the protection for your car, plus third‑party liabilities. The leaner the cover, the lower the premium—but more costs sit with you after an incident.

• Comprehensive: Covers damage to your car (even if you’re at fault) plus third‑party property damage. Typically includes events like theft, fire, storms and vandalism. It’s the widest protection and can be tailored with optional add‑ons.

• Third Party Property Damage (TPPD): Covers damage you cause to other people’s cars and property. It doesn’t cover repairs to your own vehicle. It’s a budget‑friendly safety net for liability.

• Third Party Fire & Theft (TPFT): TPPD plus limited protection for your car if it’s stolen or damaged by fire. No cover for at‑fault collision damage to your vehicle.

Next, here’s what private car insurance typically covers.

What private car insurance typically covers

Coverage varies by insurer, but here’s what private car insurance generally includes for personal‑use cars. All tiers provide third‑party property liability; only comprehensive (and, in part, Third Party Fire & Theft) protect your own vehicle. Think of comprehensive as the broad safety net for collision, crime and weather; TPFT covers the middle ground.

• Accident damage to your car: Comprehensive cover, even if you’re at fault.
• Damage to other people’s property: Legal liability across all tiers.
• Theft or attempted theft: Included under comprehensive and TPFT.
• Fire: Included under comprehensive and TPFT.
• Weather events: Storm, hail and flood are typically comprehensive.
• Vandalism and malicious damage: Usually covered by comprehensive.
• Towing and emergency repairs: Commonly included, up to set limits.

What’s not covered and common exclusions

Even the best private car insurance has limits. Exclusions protect the pool of policyholders and vary by insurer, so always check your PDS before you buy or claim. As a rule, if the risk is within your control, not accidental, or outside private use, it’s likely excluded or limited.

• Wear and tear/mechanical failure: Not sudden, accidental damage.
• Illegal or unsafe use: Drink‑driving, unlicensed driving, or an unroadworthy car.
• Commercial use on a private policy: Rideshare, taxi or courier work without the right cover.
• Racing/track work: Timed events, burnout pads, off‑road misuse.
• Non‑disclosure/misrepresentation: Undisclosed drivers, mods or prior damage.
• Negligence: Leaving the car unlocked or keys inside leading to theft.
• Pre‑existing or gradual damage: Rust, corrosion, tyres and minor cosmetic marks.
• Incorrect fuel/overloading: Misfuelling or exceeding limits.
• Unpaid premium or outside territory: Lapsed cover or driving outside agreed regions.

If any of these worry you, the next section shows optional add‑ons that can close specific gaps in your private car insurance.

Optional add-ons to tailor your policy

Private car insurance can be tuned with optional add‑ons so you only pay for benefits you’ll actually use. Most extras attach to comprehensive policies, while some appear on select third party options—always check the PDS. Below are popular additions Australians use to close cover gaps, cut surprises at claim time, and keep life moving after an incident.

• Hire car after an accident: Keep moving while yours is repaired; limits apply.
• Windscreen and glass excess‑free: Often one claim per term; chip repairs included.
• Choice of repairer: Use your preferred workshop (assessment rules still apply).
• Roadside assistance: Breakdown towing, flat battery, lockout and emergency fuel help.
• Personal effects cover: Replace stolen or damaged items from the car; sub‑limits apply.
• No‑claims discount protection: Keep your rating intact after your first eligible claim.
• Accessories/modifications cover: Insure declared accessories and legal mods fitted to your car.

Agreed value vs market value: choosing a payout type

When you buy private car insurance, you’ll choose how total‑loss payouts are calculated: market value or agreed value. Market value pays what your car was worth at claim time based on comparable sales; agreed value pays a pre‑set sum you and the insurer lock in at policy start. The choice affects your premium, claim certainty and how depreciation or price swings impact your payout.

• Market value: Usually cheaper premiums; payout reflects real‑time depreciation.
• Agreed value: Higher premiums; fixed sum for the term, more certainty.
• Best fit: Mass‑market cars = market; rare, modified or accessorised = agreed.

If your car is financed, check any lender requirements.

Understanding excesses and additional excesses

Think of the excess in private car insurance as the first slice of any claim you agree to pay. You choose a basic excess when you buy your policy: a higher basic excess usually means a lower premium, and a lower excess means you pay more for the policy but less at claim time. Your PDS explains when an excess applies and how many may stack.

• Basic excess: The standard amount you contribute on most claims.
• Age excess: Extra applied when the driver is under a set age (often under 25).
• Inexperienced driver excess: For drivers with limited licensed years.
• Unlisted driver excess: If the driver isn’t named on the policy.
• Special/incident excess: May apply for certain vehicles, locations or claim types (e.g., glass).

Excesses can add together (basic plus any applicable additional excesses). Some policies may waive the excess when you’re not at fault and the at‑fault driver is identified. Check if repairer choices or add‑ons (like excess‑free windscreen) change what you’ll pay.

What affects your premium (and why prices vary)

Insurers price private car insurance on risk: how likely you are to claim and what it could cost. Two similar drivers can see different premiums because each insurer weighs factors differently and updates prices as claims costs and weather risks change. You can influence some levers (like excess and add‑ons); others, like your postcode, you can’t.

• Cover type and limits: Comprehensive costs more than third party; higher limits increase price.
• Vehicle make, model and value: Expensive or hard‑to‑repair cars push premiums up.
• Driver profile and history: Younger or inexperienced drivers and recent claims raise risk.
• Where the car’s kept: Postcode, garaging, theft and hail/flood exposure matter.
• Annual kilometres and use: More driving equals more exposure; private‑only use is cheaper than business.
• Excess selection: Higher basic excess lowers your premium; lower excess does the opposite.
• Agreed vs market value: Agreed value usually costs more for payout certainty.
• Add‑ons and options: Hire car, choice of repairer and glass excess‑free add to cost.
• Security and modifications: Alarms/tracking can help; undeclared or high‑risk mods can add loadings.
• Payment frequency/fees: Monthly instalments may attract additional charges.

How to get quotes and the details you’ll need

Getting private car insurance quotes in Australia is simple online or by phone. For a fast, accurate price, have your car and driver info ready and confirm the vehicle is for private use. The more complete your details, the easier it is to compare like‑for‑like policies without surprises later.

• Vehicle details: Make, model, year, body type, engine, rego (VIN if asked).
• Usage and kilometres: Private use only, commute distance, estimated annual km.
• Address and parking: Postcode, where it’s kept overnight (garage, carport, street).
• Named drivers: Full names, DOBs, licence status, years licensed.
• History: Prior claims, fines/suspensions, at‑fault incidents (typically last 3–5 years).
• Mods/accessories: Any non‑standard modifications and fitted accessories to be covered.
• Ownership/finance: Whether financed or leased; who owns the car.
• Cover choices: Comprehensive/TPFT/TPPD, market vs agreed value, preferred excess.
• Options/security: Add‑ons (hire car, glass), alarms/trackers, previous insurer/NCD.

Accurate disclosure protects your private car insurance and avoids delays at claim time.

How to compare quotes beyond price

Price is the hook, but value is what pays out. When you compare private car insurance quotes, read the PDS details so you’re matching like‑for‑like cover, not just the cheapest premium. Focus on everyday risks, how claims are handled, and what it costs you at claim time.

• Coverage breadth: At‑fault damage to your car, storm/hail/flood, theft, fire and malicious damage.
• Exclusions and use: Confirm it’s strictly private car insurance; rideshare, taxi or courier needs different cover.
• Excesses and waivers: Basic plus age/unlisted excesses can stack; is the excess waived when you’re not at fault?
• Car valuation: Agreed value vs market value, and any limits on the agreed amount.
• Limits and sub‑limits: Towing, emergency repairs, windscreen/glass, keys and personal items.
• Repairs and parts: Choice of repairer, genuine/compatible parts policy, lifetime repair warranty, excess discounts with preferred repairers.
• Mobility and support: Hire car after accident/theft/not‑at‑fault, 24/7 towing, claims lodgement hours and guidance.
• Fees and discounts: No‑claims discount protection/step‑back rules, instalment surcharges, cancellation/admin fees.

Ways to lower your premium without cutting essential cover

You don’t have to hollow out your cover to save on private car insurance. Tweak the levers insurers price on, keep core protections (collision, theft, weather), and remove waste. These moves lower premiums without risking the essentials you’ll rely on at claim time.

• Lift your basic excess: Set it at a level you can comfortably afford.
• Restrict drivers: Name regular drivers only; exclude under‑25s if they never drive.
• Improve security: Park off‑street; add an immobiliser/alarm or tracking to cut theft risk.
• Be accurate on use/kilometres: Confirm private‑use only and realistic annual kilometres.
• Trim add‑ons smartly: Keep must‑haves (e.g., glass, hire car) that match your needs.
• Right-size the car value: Choose market value unless you truly need agreed value certainty.
• Use preferred repairers: Access excess discounts and lifetime repair warranties where offered.
• Protect your no‑claims discount: Consider self‑funding minor damage below your excess.
• Re‑shop at renewal: Re‑quote and ask your insurer to match or beat a comparable price.

Drive for rideshare, taxi or courier? You’ll need different cover—next.

Private use vs rideshare, taxi and courier: choose the right policy

How you use the car decides the policy you need. Private car insurance covers personal driving; it generally excludes carrying passengers or goods for a fee. If you drive for Uber or DiDi, operate a taxi, or deliver meals or parcels, you’ll need a rideshare, taxi or courier policy. Choose wrongly and a claim can be declined.

• Choose private car insurance when: commuting, errands and weekends; no paid rides or deliveries. Some insurers permit occasional, limited business use—check your PDS.
• You need rideshare/taxi/courier cover when: logged into an app and available for jobs, carrying passengers for a fare, delivering for payment, or using the car regularly for business.

Unsure? Get written confirmation before you start.

Claims made simple: what to do after an incident

When something goes wrong, staying calm and following a clear plan makes private car insurance work for you. Prioritise safety, collect the right evidence, and lodge your claim promptly so repairs and liability are handled with minimal hassle.

1. Make it safe: Move to a safe spot, switch on hazards, check for injuries and call 000 if needed.
2. Record details: Take photos/video, note time/location, weather, and damage; capture dash‑cam if you have it.
3. Exchange information: Names, addresses, licence numbers, phone, rego, insurer. Get witness details. Don’t admit fault.
4. Report to police: Required for theft, suspected crime or injuries. Keep the event number.
5. Contact your insurer ASAP: Lodge the claim with a clear description; provide driver details to help excess waivers when not at fault.
6. Towing and repairs: Use approved towing if unsafe; don’t authorise repairs until your insurer confirms. Preferred repairers often include lifetime warranties and excess discounts.
7. Pay any excess and track progress: Keep receipts and updates in writing. Ask about a hire car if included, especially for not‑at‑fault claims.

CTP (Green Slip) and private insurance: how they work together

CTP (Green Slip) is compulsory with registration and covers injuries to people from a crash you cause. It doesn’t pay for damaged cars, fences or your own vehicle. Private car insurance is optional but crucial alongside CTP: it covers damage to your car, third‑party property liability, and insured events like theft, fire and storms. In short, CTP protects people; private car insurance protects property and your wallet.

• CTP: Injuries or death to people after a crash (scheme rules vary by state).
• Private: Repairs/replacement for your car, third‑party property damage, theft/fire/weather.
• Neither: Fines, wear and tear, mechanical faults, or deliberate/illegal acts.

Keep CTP current; private cover sits on top—never instead of it.

When to switch or renegotiate your policy

Treat private car insurance as a living product. Re‑shop at renewal and any time your situation changes, because your risk (and price) can move month to month. If your premium jumps, cover no longer fits, or you’ve improved your risk profile, ask your insurer to match a comparable quote, tweak your excess, or remove add‑ons you don’t use. You can also switch mid‑term; check for cancellation fees and any return premium on the unused portion of your policy.

• Big premium rise: Get fresh quotes and request a price‑match/beat.
• Life changes: New address, drivers, kilometres, or off‑street parking.
• Car value shift: Move to market value or lower agreed value if appropriate.
• Claims history improved: You’ve turned 25 or built a clean record—ask for a review.
• Cover gaps: Add essential benefits (e.g., glass, hire car) or move to comprehensive.

Key terms you’ll see in a PDS

Your Product Disclosure Statement (PDS) is the rulebook for your private car insurance, setting out what’s covered, excluded and how claims are handled. Decode these common terms before you buy so you’re comparing like‑for‑like cover and know exactly what you’re paying for and what you can expect at claim time.

• PDS: The official guide to cover, exclusions, limits and claims.
• Policy schedule: Your personalised details—drivers, car, sums insured, dates.
• Premium: What you pay for cover; instalments may attract fees.
• Excess (basic): The first amount you contribute on a claim.
• Additional excesses: Age, inexperienced or unlisted driver amounts that can stack.
• Agreed value/market value: Fixed sum vs current market payout method.
• Exclusions: Situations or uses your policy won’t cover.
• Limits/sub‑limits: Maximum amounts the insurer will pay for certain items.
• Endorsements/special conditions: Written changes that amend standard cover.
• Duty of disclosure: Tell the truth about risks, drivers, use and modifications.
• Cooling‑off period: Time window to cancel for a refund if eligible.
• Total loss/write‑off: When repairs aren’t viable; payout based on your valuation choice.
• Choice of repairer/parts policy: Who fixes the car and what parts are used.
• Not‑at‑fault excess waiver: Excess may be waived if another identified driver caused it.

Quick answers to common questions

Quick, plain‑English answers to common private car insurance questions. Always check the PDS for your exact cover, limits and excesses, and ask your insurer to confirm anything important in writing. Policies differ, so treat this as a quick guide, not legal advice.

• Do I still need private insurance if I have CTP? Yes—CTP covers injuries only; private covers cars and property.
• Are hail and flood covered? Typically under comprehensive; check event definitions.
• Can I drive for Uber or deliver on a private policy? Generally no—get rideshare/taxi/courier cover.
• Will I pay an excess if I’m not at fault? Often waived when the at‑fault driver is identified.
• Is windscreen damage excess‑free? Usually only with a glass add‑on; otherwise your excess applies.

Before you go

You’ve now got the essentials to buy private car insurance with confidence: which cover fits your driving, how to read the PDS, what really moves the premium, and when to switch. Keep the core protections (collision, theft, weather), choose a sensible excess, and compare beyond price so the value shows up at claim time.

Ready to lock in strong cover at a sharp price? With competitive rates, a price‑beat promise on comparable quotes, lifetime repair warranties, 24/7 towing and expert claims support, switching is straightforward and can be done any time. Start now and get peace of mind in minutes—get a quick quote with National Cover.