Car Insurance FAQs

You’re responsible for your car as soon as you buy it; before driving it anywhere, it’s advisable to insure it.

All vehicles in Australia must have compulsory third party (CTP) insurance before they can be registered and legally driven on the road.

If the car you’re buying is already registered, the CTP insurance will be transferred to you – you won’t have to buy CTP insurance for the vehicle until the current registration expires.

CTP insurance doesn’t cover loss or damage to your car or damage to other people’s property, unlike other types of car insurance.

With Budget Direct, you can insure your car for its market value or, in some cases, for an agreed value.

Market value is the reasonable cost to replace your vehicle with one of the same make, model, age, mileage and overall condition.

To get an idea of what your car may be worth, search for it in the Red Book or on car sales websites.

Please note that the prices provided by these sites are only meant to be a guide. Your car's market value will be determined by us at the time of the loss or damage.

Agreed value is the amount we agree to insure your car for. We may offer you an agreed value, provided:

• your car is less than 10 years old; and
• your vehicle has not been converted to LPG; and
• the agreed value is within an acceptable range of the market value.

The value for which your car is covered is shown on your insurance certificate and in your online account.

If you’re trading in your vehicle, you’re responsible for it until the purchaser/dealer takes possession of the vehicle.

You can then insure your new car by changing the vehicle details on your existing Budget Direct policy, either by calling us on 1300 306 560 or logging into your online account and editing your policy.

If you replace your Budget-Direct-insured car with a similar one, we’ll automatically provide the same level of cover for your replacement vehicle for 14 days from the purchase date – even if you don’t contact us. (Cover for your previous car ends at the same time.)

Your replacement vehicle will be temporarily insured for its market value or purchase price, whichever is lower.

You’ll just need to make sure you update your existing policy before the temporary cover expires.

If you’re buying your car on finance, ask the finance company whether they have any special insurance requirements.

They usually require the car to be comprehensively insured and for you to provide proof of insurance – a certificate of currency, for example, which we can give you.

Yes – as long as you supply us with proof of your current no-claim bonus (or no-claim discount, as we call it) or driver rating. For example, you may have a renewal notice from your current insurer that shows your no-claim bonus or rating. We’ll factor in the rating when we calculate your premium.

You must list any household members (including learner, provisional and occasional drivers) who may drive the car. Unlisted household members won’t be covered.

Any non-household members who drive the car are automatically covered. If you list them on your policy, you’ll avoid having to pay the unlisted driver excess (other excesses may apply).

Your car insurance policy documents comprise:

1. Certificate of insurance – your proof of insurance, including your sum insured, excesses and add-on benefits.
2. Policy schedule – contains a summary of what you have disclosed to us in regard to the insured vehicle and drivers.
3. Product disclosure statement – tells you everything you need to know about the product, including the terms, conditions, limits and exclusions that apply; and how to make a claim.

We’ll notify Roads and Maritime Services (RMS) electronically when you purchase your green slip, even if you’re registering the car for the first time.

Please allow one hour for the notification to go through.

You no longer need to present a hard copy of the green slip receipt.

If you’ve had an accident, and assuming you’re physically able to, you should:

1. Make sure you and anyone else involved is safely off the road.
2. Call 000 if there are injuries or hazards.
3. Get the details of the other drivers – name, address, contact number and registration number – and give them yours (it’s a legal requirement; if anyone refuses, call the police).
4. Try to get the names, addresses, and contact numbers of any witnesses.
5. If possible, take photographs at the accident scene.
6. If your vehicle is undriveable, call us on 1300 885 996 to organise a tow or, if you prefer, book your own.
7. Make a claim

Yes – if your car is undriveable, we can arrange for it to be towed from the accident scene to the tow company’s yard and, in turn, to our motor-vehicle assessors and repairers.

Note that residents of Melbourne, Mornington Peninsula, Geelong and Adelaide are required by law to call an ‘allocation centre’ or ‘centralised operator’, who will arrange the tow on their behalf.

If you have Comprehensive Car Insurance, you’re entitled to emergency transport (and accommodation) – up to $100 per day, up to a total of $300 (standard) or $850 (Gold).

If you have Comprehensive Car Insurance, you’re entitled to emergency accommodation (and transport) – up to $100 per day, up to a total of $300 (standard) or $850 (Gold).

1. Report it to the police; they’ll give you a reference number, which you’ll need to pass on to us.
2. Make a claim.

If your car’s been damaged or stolen and you need to make a claim, we’re here to help get you back on the road as quickly and smoothly as possible.

Make a claim on your Budget Direct car insurance policy.

You can book a damage assessment when you lodge your claim – either by calling us on 1300 885 996 or logging into your online account to lodge it.

If you’re not sure what your schedule looks like at that point, you can book the assessment later.

To avoid any unnecessary delays, please lodge your claim and book an appointment before taking your damaged-but-driveable car to one of our vehicle assessment centres.

If your vehicle is driveable, we’ll ask you to take it to one of the following, depending on your location:

• one of our vehicle assessment centres – in Sydney, Melbourne, or Brisbane; or
• one of our selected repairers; or
• a local repairer (if there isn’t an assessment centre or selected repairer near you).

If your car is assessed by a local repairer, we’ll ask them to send us a repair-cost estimate and images of your vehicle’s damage.

We’ll then decide whether to assess your car remotely or to send one of our own assessors to inspect your vehicle’s damage.

If your car is not driveable, we’ll arrange for it to be towed to an assessment centre, selected repairer or other location for an assessment.

A motor-vehicle assessor evaluates the extent of the damage to your car before deciding whether it’s economical to repair or a total loss (i.e. a write-off).

If it’s repairable, they’ll determine the best way to fix the car and how much it will cost.

After your car’s damage has been assessed and we’ve authorised the repairs, we’ll – for your convenience – appoint a repairer and manage the whole repair process on your behalf.

Our selected repairers use the latest equipment and methods and are required to carry out each repair to a high and safe standard.

All repairs authorised by us are guaranteed for as long as you own the vehicle.

Can I choose my own repairer?

Each repair job is different, so it’s difficult to say for certain how long each job will take. Some can take a few days, others up to two weeks or more, depending on the severity of the damage.

Your repairer will give you an estimate of how long the job is likely to take and keep you informed of progress.

Normally, you would collect your fixed vehicle directly from the repairer.

If that’s not possible, please call us on 1300 139 591 to discuss alternative arrangements.

Yes – repairs authorised by us are guaranteed for as long as you own the car.

You can choose you own repairer, as long as we’re satisfied the repairer:

• intends to use an efficient repair method that will restore your car’s safety and utility, and
• has the equipment and skills necessary to carry out the repairs to our quality standards, and
• provides a competitive quotation to repair your vehicle.

If the repairer fails to meet any of these conditions, we will:

• arrange to have your car repaired by another repairer chosen by us; or
• pay you the reasonable cost of a satisfactory repair, as determined by us.

If we decide your vehicle is a write-off, we’ll negotiate with you to either:

• pay you the value for which your car is covered; or
• offer you a new car replacement, if you purchased the car new or as a demo model and it becomes a total loss:
  • within two years or 40,000km (whichever comes first) of the original registration (Gold Comprehensive Car Insurance)
  • within one year or 20,000km (whichever comes first) of the original registration (standard Comprehensive Car Insurance).

If your car is financed, we’re obligated to pay the finance company any money you still owe them.

We’ll arrange and pay for your written-off vehicle to be towed away from the repair shop and disposed of.

Except for essential repairs of up to $500 to make your vehicle driveable following an accident, all repairs must be authorised by us.

If your stolen vehicle is not found, we’ll pay you the amount for which your car is covered.

If your stolen vehicle is found and the damage bill is greater than your excess, we’ll either pay for it to be repaired, or write it off and pay you the amount for which your car is covered.

An excess is the fixed amount you pay towards a claim for damage to, or loss of, your vehicle.

For example, if your excess was $600 and your damage bill $3000, you would pay $600 and we would pay $2400.

You won’t have to pay an excess if the accident is deemed a no-fault accident.

The excess is designed mainly to eliminate small claims that have a high administrative cost relative to the value of the claim – which in turn helps keep your premiums down.

Unless you or another driver of your vehicle have a no-fault accident, you’ll be required to pay:

• your Basic Excess

….as well as any additional excesses that apply, namely:

• driver is under 24 years of age inclusive
• driver has not held a full Australian licence for at least two years
• driver is not listed on your insurance certificate
• vehicle has exceeded annual limit of 12,000km (applies only to ‘low-kilometres’ policies).

The dollar amounts of your Basic Excess and the additional excesses are shown on your insurance certificate and can also be viewed in your online account.

No – as long as:

• we decide the driver of another vehicle was entirely at fault, and
• you tell us the at-fault driver’s full name, address, and vehicle registration, and
• the amount of your claim is more than your Basic Excess.

Yes – you can change your Basic Excess at any time. If you increase your excess, we’ll lower your premium (and vice-versa).

To change your excess, call us on 1300 306 560 or log into your online account and edit your policy.

Yes – but only your Basic Excess.

Yes – your window-glass excess is the same as the minimum Basic Excess, however you have the option of reducing it to just $40.

You can do this when you buy a policy or – if you’ve already bought one – by calling us on 1300 306 560 or logging into your online account and editing your policy.

Yes – but only your Basic Excess.

If an excess is applicable to your claim and your car is repairable, we’ll ask you to pay the excess before the repairs start.

If your vehicle is written off, we’ll deduct the excess from the final settlement amount we pay you.

A no-claim discount (NCD) is a discount you receive on your Comprehensive Car Insurance premium for every year you go without making an at-fault claim. (It’s also known as a no-claim bonus.) The more years you remain claim-free, the lower your premium.

At Budget Direct, the NCD is capped at 5+ years. When you reach this ceiling, we’ll give you a Rating 1, which entitles you to the maximum discount.

(Ratings start at 6 and decrease for every consecutive year you don’t make a claim; the lower your rating, the bigger your discount.)

If ‘Rating 1 for Life’ is shown on your insurance certificate, you’ll keep your maximum discount for life – as long as you continue to take out NCD Protection.

Note that, if your claim stems from an accident you caused, we’ll reassess your risk premium, regardless of your NCD history.

So while you may not lose your NCD, the discount may apply to an increased premium that reflects your higher risk rating.

Each time you make a claim, your no-claim discount (NCD) is reduced by two years on renewal of your policy, unless: 

• the accident is not your fault
• the damage is caused by weather (e.g. hail)
• your claim is for window glass only
• you have NCD Protection (subject to conditions).

Yes. For a additional premium, you can get NCD Protection, which allows you to make a specified number of claims without affecting your NCD – even if the accident was your fault.

You’ll be able to make one claim per year or two claims in a three-year period without affecting your NCD.

When you have reported the incident to us, we can arrange for your car’s damage to be assessed. On acceptance of the claim, we’ll authorise the repairs or cash settlement.

You can view and manage many of your car insurance policy details – including your contact details, payment preferences, drivers, excesses and optional benefits – through your online account.

(You can also see some of this information on your certificate of insurance.)

It will vary, according to the following scenarios:

If you buy car insurance online

When you buy your policy, an online account will be automatically set up for you; you’ll be able to view your policy details immediately. Before you go, we’ll ask you to create a password so you can log into your account later.

If you buy car insurance over the phone

We’ll ask you to provide us with your email address. We’ll then email you instructions for creating a password so you can log into your online account.

If you’ve bought car insurance but don’t have an online account

You can register for an online account

Among the things you can change on your car insurance policy are:

• contact details
• payment preferences
• listed drivers
• driver-age restrictions
• kilometres driven per year
• optional extras (e.g. accident hire car)
• excess (Basic)
• car details (e.g. modifications)
• driving and claims history.

If you forget your username and/or password:

1. Go to the Policy Manager web page.
2. Click on the Forgot password? or Forgot username? link.
3. Verify you are the account holder by typing in your policy number and personal details.
4. Create a new password.

Yes – you may change the payment method any time you want, however you may change the payment frequency only once a year, when you renew your cover.

You can also push back your payment date by up to 14 days, for example if you get a new job and your pay cycle changes; or if you’re temporarily short of funds.

To change your payment arrangements, log into your online account.

If you don’t pay your premium when it’s due, we’ll send you a friendly reminder via SMS. To pay your overdue premium, you can either:

• click on the link in the SMS and follow the instructions; or
• log into your online account and follow the prompts.

Note that if you pay fortnightly or monthly and your payment is overdue by 14 days or more, any claim you make can be refused.

If your payment is overdue by a month or more, your policy can be cancelled.

At least 14 days before your car insurance policy expires, we’ll send you a renewal notice.

Unless you’ve requested otherwise, your policy is set to renew automatically – saving you having to remember and reducing the risk of your car being uninsured.

How to respond to your renewal notice:

If you’re selling your vehicle and buying another one, you can quickly and easily transfer your Budget Direct car insurance to your new car. Simply follow these steps:

1. Log into your online account.
2. View your car policy.
3. Click or tap on the ‘Change’ button on your dashboard.
4. Answer some questions about your new vehicle.
5. Select the policy options you want to add.
6. View the details of your updated policy, including the new premium.
7. Pay any additional premium that may be due.

If you don’t intend to replace the car, you can cancel your insurance policy by calling us on 1300 306 560.

Yes – to change your address log into your online account or call us on 1300 306 560.

A certificate of currency is a document that proves your car is insured.

Among other things, the certificate shows the period of insurance, the sum insured, and the interested party, namely the finance company.

It assures the finance company that, if your car was written off in an accident, the company would be the first to be paid out.

You can download your certificate of currency from your online account immediately after purchasing your cover; or you can call us on 1300 306 560 to request it.

Yes – you can cancel your policy at any time.

If you cancel it within 21 days of the purchase date – the cooling-off period – you’ll receive a full refund of your premium payments (as long as you have not made any claims).

If you pay your premium annually and cancel after the cooling-off period, you’ll be refunded a pro rata amount, i.e. any unused portion of your premium (minus the cancellation fee).

Your CTP cover expires at the same time as your vehicle’s registration.

In other words, if you forget to renew your registration and your unregistered car is involved in an accident resulting in injury or death, you can be sued for a lot of money.

By not insuring unsafe drivers like Captain Risky, we can keep car-insurance premiums low for safer drivers like you.

Depending on the type of car insurance you choose, there are lots of ways you can reduce your premium even further:

• Select the right level of cover. Do you need comprehensive cover for your car, or would third party fire and theft or third party property damage insurance be enough?
• Set a driver-age restriction. You can get a lower premium by restricting your policy to drivers over a certain age (21+, 25+, 30+, 40+, 50+).
• Get a ‘low kilometres’ policy. You can get a reduced premium if your car travels less than 12,000km a year.
• Increase your excess. If you’re comprehensively insured, you can increase your Basic Excess and we’ll reduce your premium.
• Maintain a good driving record. For each claim-free year, you’ll receive a no-claim discount (NCD) on your premium; the NCD is capped at 5+ years, at which point we’ll give you a Rating 1.