Leslie Massey
Finding the best car insurance company in Australia can be a daunting task, especially with the increasing cost of living and rising car insurance costs. A basic level of car insurance is a legal requirement in Australia, and while comprehensive car insurance is not mandatory, it offers the most extensive protection. To find the best car insurance for your needs and budget, it is important to compare different providers based on value, customer satisfaction, perks, features, and coverage options. Various surveys and rankings can help guide your decision, with companies like RAA, RACQ, Youi, Bingle, ING, and Qantas featuring prominently in the Australian market.
| Characteristics | Values |
|---|---|
| Best-rated insurer in Australia for customer satisfaction | RAA |
| Insurers with above-average customer satisfaction ratings | RACQ, Youi, RAC, GIO, Shannons, NRMA Insurance, Woolworths Everyday, Qantas, Suncorp, Apia |
| Insurers with below-average customer satisfaction ratings | RACV, AAMI, Budget Direct, Allianz |
| Insurers with the best ratings for value for money | Youi |
| Insurers with the lowest ratings for value for money | GIO, RACV |
| Insurers with loyal customers | RACQ, RAC |
| Insurers with the happiest customers when it comes to making a claim | RACQ, RAC |
| Cheapest comprehensive car insurer | Bingle |
| Best for low budget and less coverage | ING car insurance, ROLLiN’ Insurance, Virgin Money car insurance |
| Best for points and promotions | Qantas car insurance |
| Best for new customers | Youi |
| Best for broad range of coverage options | Budget Direct |
| Best for young drivers | N/A |
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What You'll Learn
Customer satisfaction
According to a 2023 survey by CHOICE, RAA was the top-rated insurer in Australia for customer satisfaction, with 91% of customers rating their experience as above average or excellent. RAA was followed by RACQ, Youi and RAC. GIO, Shannons, NRMA Insurance, Woolworths Everyday and Qantas also received above-average results. 68% of Suncorp and Apia customers rated their experience as above average or excellent, which is the average result.
Youi won the 2024 Finder Award for Customer Satisfaction, with customers rating it highly for customer service, features and benefits, ease of application and trustworthiness. Youi scored highly across all eligible states, therefore winning the national award.
In 2021, Australian Seniors scored near-perfect scores in value for money, transparency, and customer service. Clients commended the company's smooth claims processing, which on average lasts less than a week to four weeks.
According to CHOICE, customers of RACQ and RAC who had made a claim were happiest, with more than four in five customers rating their insurer's claims experience as above average or excellent.
Other car insurance companies in Australia that have been recognised for their customer satisfaction or customer service include Budget Direct, Enthusiast Motor Insurance, Australian Warranty Network (AWN), Kogan, and Medibank-backed ahm.
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Value for money
When it comes to value for money in car insurance, there are several factors to consider. Firstly, the cost of car insurance in Australia varies depending on personal factors such as age, driving history, gender, and location. For example, younger drivers under 25 tend to pay higher premiums due to their higher risk of accidents. Similarly, those living in densely populated or flood-prone areas may face higher insurance costs. Comprehensive car insurance, while not mandatory in Australia, is the highest level of cover and can protect against a wide range of risks, including accidents, theft, and third-party damage. However, it is generally more expensive than other types of insurance.
When assessing value for money, it's worth noting that less than one in five customers (18%) rate their insurer as providing excellent value for money, according to a 2025 survey by CHOICE. Among the insurers, QBE stands out for winning awards for both customer service and value for money. Their comprehensive car insurance policy includes hire car cover, personal item coverage of up to $1,000, accidental damage cover, and after-accident care of up to $1,000 for transport and emergency accommodation. However, they do not offer roadside assistance.
Another insurer that has been recognised for value for money is ING, a white-labelled product of Budget Direct. Their policies offer competitive premiums and high levels of cover. Similarly, Virgin Money, also a white-labelled product of Budget Direct, has been acknowledged for delivering competitive premiums and extensive coverage.
When considering value for money, it's essential to evaluate the trade-off between saving on premiums now and potentially paying more if you need to make a claim. Choosing a higher excess typically results in lower premiums, but you'll need to contribute more during claim time. On the other hand, opting for a lower excess will increase your premium but save you money when making a claim.
Additionally, it's worth mentioning that some insurers offer discounts for safe drivers with no history of claims, those who drive fewer kilometres, or those who take out a policy online. A “no claim bonus” is a common discount, rewarding drivers for not making claims over several years.
In conclusion, finding the best value for money in car insurance requires careful consideration of your personal circumstances, the level of cover needed, and the specific features offered by different insurers. By weighing these factors and comparing multiple options, you can make an informed decision about which car insurance policy offers the greatest value for your specific needs.
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Loyalty
On the other hand, shopping around for a new insurer can often yield better deals, as insurers typically offer their best prices to new customers. This is supported by research from Roy Morgan, which found that 7.7% of vehicle insurance policies, or 2.6 million, switched to another company in 2023. By switching insurers or negotiating with your current provider, you may be able to avoid the "loyalty tax" and secure a more competitive premium.
In addition to price, it's important to consider other factors when deciding whether to stay loyal to your current insurer. These include the level of cover you need, the optional extras offered, and the quality of customer service and claims handling. For example, Youi won the 2024 Finder Award for Customer Satisfaction due to its highly rated customer service, features, and benefits.
Ultimately, the decision to stay loyal to your current car insurer in Australia depends on a balance of factors, including price, level of cover, and quality of service. While shopping around for a new insurer may result in better deals, staying loyal can provide the comfort of familiarity and established relationships.
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Comprehensive policies
Comprehensive car insurance is the highest level of cover available, offering protection for a wide range of events, including collisions, theft, fire, weather-related events, and your legal liability in accidents where you are at fault. It also has higher benefit limits, reducing your out-of-pocket expenses in unexpected situations. While it is not a legal requirement in Australia, many drivers opt for comprehensive insurance for extra peace of mind.
When choosing a comprehensive policy, it is important to compare different providers and pay close attention to policy benefits, exclusions, and discounts. Some policies may offer unique perks or cover extra risks, such as roadside assistance, rental car after an accident, or windscreen replacement. You can also choose between agreed value or market value coverage for your vehicle, which determines how your vehicle is valued if you make a claim.
Some popular comprehensive car insurance providers in Australia include Budget Direct, Bupa, Allianz, Aldi, Australian Seniors, COTA, APIA, Everyday, NRMA, RACV, Coles, GIO, Youi, RACQ, and RAA.
Budget Direct offers a range of benefits, including break-in and accidental damage cover, roadside assistance (at an extra cost), and the option to choose your own repairer. Customers can also take advantage of extensive customer service capabilities, such as live chat and dedicated claims lines.
Bupa's comprehensive policy includes hire car cover as an optional extra and currently offers 12 months' free roadside assistance for those who join before January.
While it is important to consider the cost of premiums, it is worth noting that cheaper is not always better. Some insurers offer discounts for buying policies online or paying premiums annually, so be sure to look out for these when comparing providers.
Ultimately, the best comprehensive car insurance policy for you will depend on your individual needs and budget. Be sure to read the fine print to fully understand what is included and excluded in each policy before making a decision.
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Third-party insurance
In Australia, it is a legal requirement to have a basic level of car insurance. This is compulsory third-party insurance (CTP), which covers any costs related to injuries or death in motor vehicle accidents. CTP insurance is mandatory and may be included in your vehicle registration costs or purchased separately, depending on the state or territory in which your vehicle is registered. In New South Wales (NSW), the Australian Capital Territory (ACT), Queensland, and South Australia, CTP is underwritten by private insurance companies, so the price can vary depending on the provider. Meanwhile, in Victoria, Western Australia, Tasmania, and the Northern Territory, CTP is issued directly by the state government and is included in annual vehicle registration costs.
Some insurance companies offering third-party insurance in Australia include QBE, AAMI, and Allianz. QBE's Third Party Property Damage Car Insurance covers damage to another person's vehicle or property caused by your car, with a limit of up to $30 million. AAMI's Third Party Property Damage Car Insurance provides similar coverage with a limit of up to $20 million. Allianz's Third Party Property Damage Insurance also provides coverage for loss or damage to another person's car or property while using your car.
When considering third-party insurance, it's important to compare different providers and their offerings to find the best fit for your needs. Additionally, it's worth noting that while value for money is important when choosing an insurer, car insurance providers with higher customer satisfaction ratings, such as RAA, RACQ, and Youi, may offer a better overall experience.
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Frequently asked questions
There are a variety of car insurance companies in Australia, and the best one for you will depend on your needs and budget. Some popular options include:
- RAA (rated the best in Australia for customer satisfaction in 2023)
- RACQ
- Youi
- RAC
- GIO
- Bingle (the cheapest comprehensive car insurer)
- ING (retained its National Outstanding Value Car Insurance Award in 2025)
Some factors to consider when choosing a car insurance company in Australia include:
- Value for money: With the increasing cost of living, many customers are looking for insurers that offer excellent value for money.
- Customer experience: Insurers that rate well for customer experience tend to have higher satisfaction ratings.
- Coverage options: Consider whether you need basic coverage or a comprehensive policy with extras like roadside assistance and hire cars.
- Price: Compare the average prices of different insurers and choose one that fits your budget.
- Loyalty: Some insurers have very loyal customers who have stuck with them for over 10 years.
Some unique features of car insurance in Australia include:
- Compulsory third-party insurance (CTP): A basic level of car insurance is a legal requirement in Australia. CTP covers any costs related to injuries or death in motor vehicle accidents.
- Multi-car insurance: You can insure more than one car on a single policy with a discount for bundling them together.
- Pay-as-you-drive insurance (PAYD): Your premium is based on how much you drive, which can be a good option if you don't use your car often.
