Car insurance

Car insurance is a contract between you and your insurance company that provides financial protection against potential losses related to owning a vehicle. It is designed to help cover costs resulting from accidents, theft or damage to the insured vehicle, as well as liability for damage caused to other people's property.

When you buy car insurance, you pay regular premiums to the insurance company. In return, the company agrees to compensate you for losses as outlined in the policy. The specific coverage and terms of the policy can vary depending on the insurance provider and the type of coverage you choose.

Car insurance is an umbrella term that incorporates three main types of cover, each of which offers a different type of protection:

Comprehensive – Generally covers repairs or replacement of your own car, as well as repairing the damage caused to another person’s car or property if you have an accident where you’re at fault

• Also typically covers you for a wide range of damage caused by insured events like accidents, theft, fire (including bushfire), storms (including cyclones) and hail. Get a quote for Comprehensive Car insurance through ANZ
• Third Party Property Damage – Generally covers you for loss or damage to another person's car or property if you have an accident where you're at fault. Get a quote for Third Party Property Damage car insurance through ANZ
• Third Party Fire and Theft – Generally covers you for loss or damage to another person's car or property if you have an accident where you're at fault. Cover typically includes loss or damage to your vehicle as a result of fire or theft. Get a quote for Third Party Fire and Theft Insurance through ANZ

The cost of car insurance depends on a range of factors, including:

• your age and driving history, including any previous accidents and claims
• where you live and how your car is parked overnight
• the type of car you own
• the type of car insurance policy you choose (e.g. comprehensive or third party)
• how much your car is insured for (e.g. new-for-old replacement, 'market value' or 'agreed value')
• whether your car is mainly for personal or business use
• the amount of excess you agree to pay if you make a claim.

A good way to find out the cost of car insurance is to get a quote that's tailored to your circumstances. A quote will outline your 'premium' – which is the total amount you will need to pay for one year of cover, including government taxes such as GST and any other duties or charges that apply. Get a quote for car insurance through ANZ

Comprehensive car insurance is generally the highest level of car insurance available. It can help cover the cost of repairs or replacement of your own car, and cover the cost of repairing the damage caused to another person's car or property if you have an accident.

Comprehensive car insurance can also cover you for a wide range of damage caused by insured events like theft, fire (including bushfire), storms (including cyclones) and hail.

Third party car insurance generally provides cover for damage caused to someone else's vehicle or property, if you are liable for it. The two main types of third party car insurance are:

• Third Party Fire and Theft – Generally covers you for loss or damage to another person's car or property if you have an accident where you're at fault. Cover also typically includes loss or damage to your vehicle as a result of fire or theft. Get a quote for Third Party Fire and Theft insurance through ANZ.
• Third Party Property Damage – Generally covers you for loss or damage to another person's car or property if you have an accident where you're at fault. Get a quote for Third Party Property Damage insurance through ANZ.

Car insurance excess is your contribution towards the cost of a car insurance claim. The amount you contribute depends on the excess you nominated for your policy, which is shown on your Policy Schedule.

For example, in the event your claim was accepted, if your excess is $800 and the estimated cost to repair the vehicle is $2,250:

• you would pay the $800 excess to the repairer
• your insurer would pay the repairer $1,450 (being the cost of repairs of $2,250 less the $800 excess).

The difference in the repairs is only paid up to the applicable policy limits. Generally speaking, the higher the excess you nominate for your car insurance policy, the lower your premium.

You only pay the excess on your car insurance if you make a claim that is accepted by your insurer.

You generally pay the excess to the authorised repairer, as the excess is your contribution to the cost of your repairs. For example, if your excess is $800 and the estimated cost to repair the vehicle is $2,250:

• you would pay the $800 excess to the repairer
• your insurer would pay the repairer $1,450 (being the cost of repairs of $2,250 less the $800 excess).

The difference in the repairs is only paid up to the applicable policy limits.

You may not need to pay an excess if your insurer consider you not at fault for the accident, and you can provide the name and residential address of the person who is at fault.

The person who is at fault in a car accident is generally required to cover the other person's costs – including repairs, towing fees and replacement hire car costs. If the person at fault doesn't have car insurance, they typically need to pay the other person's costs out of their own pocket.

If you can't come to an agreement with the other person about who was at fault, or what payment is required to cover costs, you may need to seek legal advice.

It's worth noting that every registered car must be covered by Compulsory Third Party (CTP) Insurance. However, CTP Insurance only covers your liability, or the liability of anyone else who drives your vehicle, for injuries caused to others in a motor vehicle accident. It doesn't cover losses associated with or the cost of damage to your or anyone else's car or property.

If you have an ANZ Car Insurance policy and you’ve been in an accident, you should contact the insurer, CGU to lodge a claim as soon as possible.

CGU can give you immediate assistance with your claim 24 hours a day, 7 days a week. CGU:

• can arrange towing for your vehicle after an incident (comprehensive only);
• may need to inspect your vehicle and arrange quotations from any repairer or supplier; and
• may ask you to substantiate your claim by providing us with proof of ownership of your vehicle and any other items you claim for under this policy. For example, CGU may request a copy of your vehicle registration documents as proof of ownership.

For more information on how to claim car insurance please visit our claims page.

When you make a car insurance claim, your insurer will request quotes for the necessary repairs from one or more authorised repairers. If the repair costs come close to, or even outweigh, the insured value of the car, your insurer may decide to 'write off' your car instead of authorising the repairs.

When a car is written off, its details are entered in the Written-Off Vehicle Register (provided it's less than 15 years old and weighs less than 4.5 tonnes). The insurer will then provide the owner with a payout or a replacement car, depending on your insurance policy. This may be a car of the same model, or the market or agreed value, depending on your level of cover.

ANZ offers new vehicle replacement as standard on our Comprehensive Car Insurance, meaning that if your new vehicle is written off within the first 3 years of registration, you will be provided with a new vehicle of the same make, model, engine size and paint type, if available in Australia.

When you commence a car insurance policy that covers your vehicle (e.g. Comprehensive or Third Party Fire and Theft) you can typically choose between 'agreed value' or 'market value'. This will determine how your payout is calculated if your car is written off or stolen.

What is agreed value car insurance?

If your car insurance covers you for 'agreed value', you'll generally be covered for an amount that you and your insurer agree to insure your car for – regardless of the age or market value of your car at the time of the insurance claim.

The benefit is you know exactly what you're what you're covered for if your car is written off or stolen after an insured event.

What is market value car insurance?

If your policy is 'market value', your insurer will generally cover the reasonable replacement cost based on what your car's worth 'in the market'. This value is determined by your insurer at the time of claim by comparing your car to the market value of cars that are the same make, model, age, mileage and overall condition as yours.