What does car insurance cover?

The things your car insurance covers depends on the type of cover you have; in Australia, there are three broad types of car insurance:

  • Comprehensive car insurance, which covers loss or damage to your car, as well as  your liability for the damage it causes to other people’s property, including their vehicles. Read more
  • Third party property car insurance, which generally only covers your liability for the damage your car causes to other people’s property, including their vehicles. Read more
  • Compulsory third party (CTP) insurance, which covers compensation claims made against you for injuring or killing someone in an accident.

Does car insurance cover repairs to my car?

If you’re a comprehensive car insurance policyholder, we’ll cover the cost of repairing accidental damage to your car due to a collision, severe weather, fire, theft and vandalism.

If you’re a Third Party Fire and Theft policyholder, we’ll cover the cost of repairing damage to your car due to fire or theft only.

Does car insurance cover theft of my car?

If you’re a comprehensive or Third Party Fire and Theft policyholder, we’ll pay you the amount for which your car is covered if it’s stolen and not found.

You’ll need to report the theft to the police before lodging a claim.

Is my car covered for hail and storm damage?

If you’re a comprehensive car insurance policyholder, we’ll cover the cost of repairing damage to your car due to severe weather, including storms, floods, and hail.

Does car insurance cover vandalism?

If you’re a comprehensive car insurance policyholder, we’ll cover the cost of repairing damage to your car due to malicious damage or vandalism.

You’ll need to report the incident to the police before lodging a claim.

Does car insurance cover fire damage?

If you’re a comprehensive or Third Party Fire and Theft policyholder, we’ll cover the cost of repairing fire-damage to your car.

If the fire is suspicious, you’ll need to report it to the police before lodging a claim.

Am I covered for the damage my car causes to other people's vehicles?

If you’re a comprehensive or third party property policyholder, we’ll cover your liability for the damage your car causes to other people’s property, including their cars and homes.

Does car insurance include the cost of towing?

If you’re a comprehensive policyholder, we’ll cover the cost of recovering, towing and storing your car if it’s stolen or unsafe to drive as a result of accidental damage.

If you’re a Third Party Fire and Theft policyholder, we’ll cover the cost of recovering, towing and storing your car if it’s stolen or unsafe to drive due to fire damage (i.e. towing is not covered if your car is damaged because of any other reason). 

Does car insurance cover windscreen replacement?

If you’re a comprehensive car insurance policyholder, we’ll cover the cost of replacing your car’s damaged window glass, including its windscreen.

Note that your window glass excess is the same as your Basic Excess; for an additional premium, you can reduce your window glass excess to just $40.

You can do this when you get a quote and 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 at renewal time.

Does car insurance cover contents stolen from or damaged in my car?

If you’re a Gold comprehensive policyholder, we’ll pay you up to $500 if your personal effects are damaged in a collision or stolen from your car.

We’ll also pay you, separately, up to $500 if any child seats/baby capsules are damaged in a collision or stolen from your car.

If you’re a standard comprehensive policyholder, we’ll pay you up to $250 if your personal effects (including child seats/baby capsules) are damaged in a collision.

Read more about comprehensive car insurance

Does my cover include stolen car keys?

If you’re a comprehensive car insurance policyholder, we’ll cover the cost of replacing your car keys or remote locking device if they’re stolen and not recovered, up to $1,000.

You’ll need to report the theft to the police before lodging a claim.

Does car insurance cover loss or damage to a caravan and/or trailer?

If you’re a Gold comprehensive policyholder, we’ll pay you up to $1,000 if your caravan or trailer is damaged in a collision while you are towing it

If you’re a standard comprehensive policyholder, we’ll pay you up to $500 if your trailer (caravans are not covered) is damaged in a collision while you are towing it.

Read more about comprehensive car insurance

Does car insurance include a hire car?

If you’re a comprehensive or Third Party Fire and Theft policyholder and your car is stolen and we pay your claim, we’ll supply you with a hire car similar to yours for up to 14 days, up to $1,000.

If you’re a comprehensive policyholder, for an additional premium you can upgrade your cover and get a hire car if your car is damaged in an accident.

If we pay your claim, we’ll arrange for a compact hire car for you to use until your car is fixed or your claim is settled, up to 14 days.

You can add this hire-car-following-accident benefit to your policy when you buy your cover or – if you’ve already bought it – by calling us on 1300 306 560 or logging into your online account and editing your policy.

Does my cover include a new-car replacement?

If you’re a comprehensive car insurance policyholder, we’ll give you a new-car replacement if you purchased your 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).

Does car insurance cover mechanical breakdowns?

No – car insurance covers you for loss or damage resulting from unforeseen events like accidents and theft, as opposed to mechanical breakdowns due to wear and tear.

Does car insurance cover hitting an animal?

If you’re a comprehensive car insurance policyholder, we’ll cover the cost of repairing damage to your car due to a collision with a domestic (e.g. a cow) or wild (e.g. a kangaroo) animal.

Am I covered for putting wrong fuel in my car?

No – we do not cover any claims arising from the use of incorrect fuel.

Does my cover include medical bills?

No – in Australia, your emergency medical and hospital bills are claimable from Medicare and/or your private health fund.

If you’re injured in a car accident caused by someone else, you can also make a personal injury claim through the compulsory third party (CTP) insurer of the vehicle of the driver you believe is at fault.

Is my car covered for off-road driving?

Yes – as long as you take all reasonable steps to prevent any loss or damage, and your car’s not being used for racing, trials, tests, contests or rallies.

Does Budget Direct offer cover for classic and vintage cars?

It will generally depend on the car’s specifications and who the regular driver is, especially if it’s a high-performance vehicle.

To find out whether we’ll cover your classic or vintage car, please get a quote.

Does car insurance cover me while driving in other countries?

No. If you intend to drive a rental car overseas, it may be wise to get travel insurance instead.

Specifically, you should consider getting a policy that covers any hire-car insurance excess you become liable to pay as a result of the car being damaged or stolen.

This could potentially save you several thousand dollars.

Do you offer any optional extras?

For an additional premium, you can customise your comprehensive car insurance by adding one or more of these optional benefits to your policy:

  • No-claim discount protection
    Make one claim per year or two claims in a three-year period without affecting your no-claim discount – even if the accident was your fault.
  • Hire car following an accident
    Get a compact hire car not only if your car is stolen (a standard benefit), but also if it’s damaged in an accident – up to 14 days.
  • Reduced window-glass excess
    Reduce your excess for damage to your car’s window glass, including windscreen, to just $40.

Can I get roadside assistance too?

Yes – you can get roadside assistance for just $79.95 a year – with or without a Budget Direct car insurance policy.

Read more about roadside assistance

What is a product disclosure statement?

A product disclosure statement (PDS) is a document containing all the things you need to know about an insurance product.

Budget Direct’s car insurance PDS comprises two separate parts:

Part A contains general information about the product, including:

  • permitted use of the car
  • types of cover
  • what is covered (the ‘benefits’) – and the terms and conditions under which these benefits are provided
  • what is not covered (the ‘exclusions’)
  • how to claim
  • car repairs.

Part B contains specific details about the product, including:

  • benefit-amount limits
  • excess types (Basic and additional excesses)
  • optional benefits
  • administration and cancellation fees.

Read the product disclosure statement

Get a car insurance quote online