Everything You Need To Know About Car Insurance Quotes

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Are you a first-time car buyer struggling to find the best car insurance? Maybe it’s time to renew your policy and you’re shopping around for a better deal. 

Understanding all things car insurance and how to get car insurance quotes online can help you save time and money. It’s all about knowing how to compare your options and learning what to look for in car insurance quotes. 

Luckily, we’re here to help you make the right decision for your needs with our complete guide to how to gather car insurance quotes online like a pro. 

What is a car insurance quote?

A car insurance quote is a ballpark estimate of the cost and potential benefits given to you by insurance providers. While your car insurance quote probably won’t be the exact or final number you end up paying, they give you a reasonable indication of the insurance premium you’ll need to pay to get your car ready for the roads.  

Plus, getting a car insurance quote from a range of insurance providers gives you the ability to do some research and compare your options to narrow down your choice. 

To get the closest estimate, the insurance company will ask you a few questions to understand more about your risk factors that they use to provide you with a quote, including your driving history, the type and level of coverage you’re looking for and even where you park your car. 

All of this information gives them a better understanding of how much your car insurance policy is likely going to cost. 

How do you get a car insurance quote?

If it’s your first time getting car insurance, it can feel super overwhelming with so many new terms to understand and remember.

But, thanks to the internet, finding out information and comparing different car insurance providers and policies is easier than ever. 

1. Choose the type of car insurance you want

First up, let’s unpack the four different types of insurance policies available which fall into two main categories: third-party and comprehensive car insurance policies. 

  • Compulsory third-party (CTP) insurance: CTP insurance is a legal requirement and the most basic car insurance cover. It includes cover for yourself, passengers and any other drivers to protect you from compensation claims. CTP insurance is included in your car registration cost, except in NSW where you have to purchase it separately. 

 

  • Third-party property insurance: this car insurance type covers damages to other people’s cars and property when an accident is your fault.  

 

  • Third-party property, fire and theft insurance: a step above the general third-party property insurance, this type covers your car if it’s damaged by fire or stolen in addition to property damages. 

 

  • Comprehensive car insurance: offering the broadest coverage, comprehensive car insurance covers authorised repairs to your car or another driver’s car, regardless if the accident was your fault or not. Plus, it also covers fire and flood damage or damages caused by vandalism to your vehicle.

2. Narrow down any optional extras

There are a range of optional extras that can be included in your third-party and comprehensive policies so you can customise your car insurance to your particular needs. 

Although these optional extras will likely raise your premiums, having them in your insurance policy could save you money in the long term in case of unexpected damages to your car. Plus, the right optional extras allow you to tailor your policy to suit your needs. There are a stack of extras you can include in your car insurance including: 

  • 24-hour roadside assistance 
  • Access to a rental car after an accident 
  • Freedom to choose your own mechanic in the case of an accident
  • Lifetime guarantee on authorised repairs 
  • Coverage for theft and personal items up to a certain amount
  • Windscreen cover

3. Decide how your car is valued

If you end up choosing comprehensive car insurance, you also have to decide how your car is valued in a situation where your car is written off or stolen. The two options when valuing your car are either agreed or market value. Not all insurers will offer both valuation methods, so much sure to check which method is used by your specific insurer: 

  • Agreed value: this is a fixed amount that is agreed between you and your insurance provider. Typically, the agreed value means you have to pay a higher premium, but you’re not affected by a bad market when you get an insurance payout.

 

  • Market value: this is a variable amount based on what the car would have sold for at the time of the accident. The market value is based on cars with the same make, model, age, overall condition and mileage as your car. 

 

While insuring your car under the market value means your insurance premium will be less than if you choose the agreed value, keep in mind that the value of your car depreciates over time so your payout will be lower as the years go by.

4. Compare the market to get the best deal

Now that we’ve covered the basics, it’s time to compare the market and do some research on what’s out there. 

You can use comparison websites to get car insurance quotes online or request a car insurance quote directly from the insurance provider. Just be sure to look out for any promotional links that pop up on comparison websites (remember, they’ve got to make money too). 

When you’re comparing car insurance quotes, here are some features to consider. 

  • Exclusions: be mindful of events that aren’t covered by your policy for example storm damage, mechanical failure or intentional damage. For example, if you constantly park on the street, you might want to consider if vandalism or theft is an exclusion. 

 

  • Roadside assistance: understand if free roadside assistance is included in your policy in case of an unexpected breakdown. 

 

  • Premium: two insurance providers can offer different prices for the same type of coverage.

 

  • Excess: look into whether the insurance company will always charge an excess, regardless if an accident was your fault or not. 

 

  • Discounts: some insurance companies offer discounts and features for long-term customers or if you take out different types of insurance with them. 

 

Ultimately, getting a car insurance quote isn’t as tricky as it used to be thanks to the internet and online comparison tools which let you shop around, narrow down your options to find the best deal on the market. 

At Stella Insurance, we make it easy to secure a car insurance quote online. Our quick quote tool gives a car insurance policy estimate in just a few minutes. 

[Disclaimer]

Underwriting criteria apply. Stella Comprehensive Car Insurance is issued and underwritten by QBE Insurance (Australia) Limited (ABN 78 003 191 035, AFSL 239545) (QBE) and distributed by Stella Underwriting Pty Ltd (ABN 72633811319) acting as an Authorised Representative (AR 001282046) of Insurtech Gateway Australia Pty Ltd (ABN 27 633 140 879, AFSL 525866), which is acting under its own AFSL on behalf of QBE.  Any advice provided is general only and has been prepared without taking into account your objectives, financial situation, or needs and may not be right for you. You should consider the appropriateness of any such advice, and read the Product Disclosure Statement (‘PDS’), the Target Market Determination (‘TMD’), and Financial Services Guide (‘FSG’) for these products available at www.stellainsurance.com.au before making a decision to acquire or to continue to hold the product.

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