Top 10 best car insurance companies in Australia

Kariuki Maina
By Kariuki Maina 12 Min Read

Safety should always come first while you are driving. Many of us don’t give our auto insurance policy a second thought, even if we always check our seats, mirrors, and seatbelts.

You would think that folks would give it a bit more attention considering it is something so significant (not to mention required). However, it might be a little overwhelming to see so many options in front of you, including plans with different names, costs, and features.

Therefore, we’ll give you some advice on things to think about when buying a policy and run through some of the top auto insurance alternatives available.

IAG is the largest general insurance company in Australia and New Zealand. Because of the fierce competition in the Australian auto insurance industry, it can be challenging for customers to select the best plan. Customers of automobile insurance frequently focus their decisions on price, but as any insurance broker will tell you, there are many other factors to take into account, including the terms of the policy, your unique demands, and the level of customer care offered.

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The top 10 auto insurance providers in Australia are shown here in brief.


1. Australian Seniors

The best-rated auto insurance company in Australia is called Australian Seniors. With choices for comprehensive, third-party property damage, and third-party, fire, and theft protection, Australian Seniors auto insurance products are underwritten by Hollard. Roadside help is an add-on extra and legal liability coverage is offered up to $20 million.

2. Australian Warranty Network (AWN)


The mechanical breakdown insurance offered by AWN, which covers a variety of vehicles including automobiles, motorbikes, scooters, RVs, and caravans, is well recognized. General insurance, administration and claims management, roadside assistance, asset protection, and training programs are some of its other goods and services.

3. Youi

Youi is an entirely owned subsidiary of Rand Merchant Insurance Holdings Group member OUTsurance International Holdings Pty Limited (RMIH). Car, motorbike, caravan and trailer, building and contents, watercraft, and business liability insurance are among the goods it underwrites.

4. Budget Direct

Budget Direct is an Australian general insurance provider with more than 1,300 employees, close to nine million clients, and partnerships with hundreds of auto mechanics and construction firms. Policyholders can customize their coverage by adding one or more extra features, such as the ability to rent a car after an accident or flood insurance for their house, and can submit claims any time of the day or night.

5. Integrity Extended Warranties

Long-standing partnerships with industry titans like Lumley Insurance and the Royal Automobile Club of Victoria (RACV) are maintained by Integrity Extended Warranties. Absolute and Endurance are its coverage options. The Absolute coverage plan, which is offered by auto dealers, offers coverage on par with the manufacturer’s warranty after it expires. The Endurance plan, on the other hand, is a listed components and parts warranty for automobiles with a one- to five-year term cover, independent of age or mileage.

6. Real Insurance

Real Insurance asserts that it was the first insurer in Australia to offer pay-as-you-drive auto insurance, as well as the first insurer to do so globally using a trust-based strategy. Customers have the option of picking the basic coverage to keep their premiums cheap or adding additional coverage to their policy for more protection.

7. Eric Insurance

With more than 20 years of expertise in the vehicle insurance industry, Eric Insurance is a general insurance provider. It is well-known for its full-coverage auto insurance, motorcycle insurance, motor vehicle warranty insurance, motor vehicle tyre and wheel insurance, motorcycle warranty insurance, and motorcycle tyre and wheel insurance products.

8. Huddle Insurance

Over 35,000 people are currently signed up for Huddle Insurance, which also includes a tiny army of Huddle Bots, AI-powered bots that employ algorithms to gather helpful data and provide 24/7 customer care. Comprehensive and third-party property policies with a range of advantages and add-on options are included in its auto insurance line. The comprehensive plan includes coverage for loss or damage to both the policyholder’s vehicle and to another person’s vehicle or property. The third-party property plan, on the other hand, solely addresses harm to other people’s cars or property.

9. Woolworths Insurance

Drive less pay less, third-party property, fire and theft, third-party property damage, and comprehensive auto insurance are among the car insurance options offered by Woolworths Insurance. For part-time drivers, Woolworths Drive Less Pay Less offers complete coverage. All benefits of third-party property damage, including theft or attempted theft, malicious damage, and fire, are covered by the third-party property (fire and theft) plan.

Liability protection is included in the third-party property damage product for any individual who is legally operating the policyholder’s vehicle without authorization. The complete auto insurance coverage shields policyholders from financial risks brought on by collisions, theft, vandalism, damage to other people’s property or vehicles, natural catastrophes, accidents involving transit, and damage caused by other motorists or passengers.

10. State Government Insurance Office (SGIO)

IAG, one of the biggest general insurers in Australia and New Zealand, is an investor in the insurance firm SGIO. For consumers’ convenience, its auto insurance line offers a range of policies, including comprehensive, comprehensive plus, third-party property damage, third-party fire and theft, veteran, vintage, and classic vehicle coverage.

Types of car insurance

There are many levels of auto insurance coverage you should take into account, including:

  • Compulsory third party (CTP)
  • Third party property damage
  • Comprehensive car insurance.
  • Compulsory third party car insurance

For compulsory third party (CTP) insurance, which is mandated by law when driving on Australian roads, there are state-specific variances.

If your vehicle was involved in an accident that caused someone else’s injuries or death, CTP insurance offers coverage (including the person driving, other drivers, passengers in your car, and pedestrians).

  • Third party property damage car insurance

Then there is third party property damage auto insurance, which can assist in defraying a portion of the repair expenses if you are at fault for damage to other people’s property or automobiles.

Unfortunately, if you were at fault, third party insurance frequently won’t cover damage to your own car. Comprehensive auto insurance may be able to cover the cost in that situation.

  • Comprehensive car insurance

Compare comprehensive car insurance if you’re looking for a plan that also covers your own wheels.

Many insurance providers may allow you customize coverage for this larger type of protection based on your needs and financial situation. For those who don’t drive much, there are choices like pay-per-kilometer auto insurance, and auto insurance discounts are given in recognition of traits like being a careful driver, driving a fuel-efficient vehicle, and having numerous insurance policies with the same company. Then there are policies driven by insurtech advancements that can further customize your coverage.

There won’t be one greatest auto insurance choice that suits everyone, though, because there are so many possibilities available. There are several ways to determine which auto insurance policies are the best for your situation, depending on the data you use, the cost, and the policy contents.

What are the best car insurance features to look out for?

This mostly relies on your automobile and the insurance coverage factors you wish to emphasize. However, there are several benefits you’ll frequently find in comprehensive auto insurance that go beyond the basic protection against losses brought on by mishaps, natural disasters, fire, theft, and malicious actions. While by no means comprehensive, some of these characteristics may include:

New-for-old car replacement: If your automobile is written off, the insurance provider will replace it with a new, equivalent model. Remember that depending on the age and mileage of the car, this frequently has restrictions.

Emergency support: This might be in the form of a predetermined sum of cash to pay towing and urgent repairs to get your car back on the road or travel and lodging expenses to bring you home following an incident (this is often reliant on you being a certain distance from your residence).

Hire car cover: In most cases, insurance will state whether or not this is a normal benefit following a theft or accident for which you are or are not at fault. The majority of packages also include day or monetary restrictions on how much they will cover for rental car insurance.

Modifications: You might want to seek for a coverage that will cover these if you’ve modified or added extras to take your vehicle beyond its stock configuration.

Personal property cover: This insurance covers any damaged or stolen property you store in your automobile. Baby seats and kid restraints are occasionally listed separately from other property, but both categories often have specified cost amounts.


Some drivers might prefer a more basic level of coverage, such as a third-party policy or third-party fire and theft insurance, but those who want to have their wheels covered for the widest possible variety of situations should look into comprehensive car insurance.

The majority of auto insurance carriers operate all around Australia, while a few niche organizations exclusively do business in a few states and territories. Your coverage will remain in effect even though your auto insurance carrier takes the state or territory where the vehicle is registered into account when determining premiums. If you need to file a claim and are traveling across state lines temporarily or on vacation.

It’s a good idea to contact your insurance provider if you anticipate staying away from your registered address for an extended period of time. There may be restrictions on how long you may spend outside the state before losing your coverage.

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By Kariuki Maina Kariuki Maina
In a world full of worriers, be the warrior.
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