Helping You Make Smarter Choices

We've put together a brief guide explaining our Car Insurance policy to help you make a smarter choice when selecting an insurance provider.

What Is A Product Disclosure Statement?

A Product Disclosure Statement (PDS) will help you make an informed decision about our insurance products. Our Product Disclosure Statements come in two parts: one (Part A) covering the general terms and conditions of all our policies, and a second (Part B) that contains details about a specific product. You should read both before you decide to purchase insurance.

What Are Our Underwriting Criteria?

Our underwriting criteria are the set of guidelines we use to calculate risk. We use customer details, vehicle and driving history to determine what level of insurance cover we can offer to a customer, and at what price.

Your Duty of Disclosure (What You Must Tell Us)

The information you give helps us determine whether we can offer you insurance, and on what terms. So it’s important it’s both honest and complete.

If you’re taking out this insurance for the first time you must be honest when you answer our questions. You need to tell us everything you know that a reasonable person in similar circumstances would include in their answer.

If you’re renewing, extending, varying or reinstating your insurance you must tell us everything you think could be relevant to us in deciding whether we can offer you insurance. However, you don’t need to tell us anything that:

  • diminishes the risk to us as the insurer
  • we know (or should know) based on our business
  • is common knowledge.

When you’re giving this information, you’re doing it not only for yourself, but also for anyone else being insured under the policy.

If you don’t tell us what we need to know

If you don’t comply with your Duty of Disclosure, we may reduce (or even refuse to pay) your claim and/or cancel the policy. If we feel you have been deliberately fraudulent, we may treat the policy as if it never existed.

Permitted Use Of The Car

If you insured your car with us, you won’t be covered if it’s used for any purpose you haven’t declared to us. What you can use your car for is shown on your Insurance Certificate, and will be one of the following:

  • Private Use or Private and Commuting Use, which means for social, domestic and recreational purposes only, as well as travelling between home and a regular place of work.
  • Private and Occasional Business Use is the same as "Private and Commuting Use", but also includes occasional business use (but only by the regular driver or their spouse). And by “Occasional Business Use” we mean the car isn’t registered for business use and isn’t needed to earn income for the business.
  • Private and Business Use is the same as "Private and Commuting Use", but also allows for business use by the regular driver or spouse, as well as any driver listed on the current Insurance Certificate.

Use that’s never covered

None of our policies will cover you for:

  • carrying passengers or other people's goods for payment
  • conducting driving tuition for payment
  • hiring the car to other people

Use that’s always covered

Whatever policy you choose, you will be covered for private car sharing and voluntary home or community service (providing you’re not profiting from it).

Excess On Claims

An excess is the amount you have to pay towards each claim.

A basic excess applies to all claims. It will be a standard amount, unless you’re paying a higher excess to get a lower premium.

Additional excesses apply when the car is driven by someone who is not an excluded driver, but who:

  • is under 21 years of age ($600)
  • is aged 21 to 24 years inclusive ($500)
  • has not held a full Australian licence for at least 2 years ($400)
  • is not listed as a driver on the Insurance Certificate ($500)


Any household members who might drive the car during the insurance term (including Learner, Provisional and occasional drivers) need to be listed on the policy to be covered while driving the vehicle.

Any non-household members who might drive the car during the insurance term will be automatically covered if they’re not listed on the policy, subject to any restrictions on the policy. However, they will incur an additional excess as previously mentioned.

Additional Benefits (Optional)

Roadside Assistance is an optional benefit provided by UltraTune. It’s a 24/7 service that helps you with most common breakdown problems such as:

  • a flat battery
  • a flat tyre
  • running out of fuel
  • locking your keys in the car

Whether your car is parked at home or on the roadside.

Accident Hire Car is an optional benefit that lets you have a compact class vehicle for up to 14 days while your car is being repaired.

Reduced window glass excess is an optional benefit that lets you pay an additional fee on your premium to pay a lower excess if it’s only your car's window that needs repairing.

Note: You only receive this benefit if it appears on your Insurance Certificate.

Policy Coverage

What’s the difference between Comprehensive, Third Party Fire and Theft and Third Party Property Damage Car Insurance policies?


Your Vehicle

Third Party's Property






Third Party Fire & Theft




Third Party Property only




Comprehensive Car Insurance covers you for the damage your car does to other people's property, as well as repairs to your car up to the amount it is insured for.

Third Party Property covers you for the damage your car does to other people's property. It also includes limited cover if your car is damaged in a No Fault Accident with an uninsured vehicle.

Third Party Fire and Theft covers you for loss or damage to your car if it’s stolen or catches fire, as well as any damage it does to other people's property. It also includes limited cover if your car is damaged in a No Fault Accident with an uninsured vehicle.

It does not cover damage caused when someone tries to steal your car, or for any items stolen from the car.

Note: This policy is only available when the insured car's total value is less than $10,000.

For more details, read our Product Disclosure Statements

Insurance We Do Not Offer

Compulsory Third Party (NSW CTP), often referred to as the ‘Green Slip’, covers you for personal or fatal injury caused to another person as a result of a vehicle accident.

Note: If you need a NSW CTP policy, please visit the CTP page on our website.

What personal effects are associated with car insurance?

Personal effects are any personal belongings in your car at the time of an accident. When you take out Comprehensive Insurance with Budget Direct we cover any personal effects damaged by a collision involving your car. If you hold a Gold Comprehensive Insurance policy you will also be covered if your personal effects are stolen from your car.

Note: Limits apply. For more details, read our Product Disclosure Statement.

What is a No Claim Discount (NCD) and how does it affect Car Insurance premiums?

A No Claim Discount reduces your Comprehensive Car Insurance premium, and is based on your driving experience and claims record.

For each year you drive without making a claim you receive a discount from the full-priced premium until it reaches a maximum discount (known as Rating 1).

What’s the difference between Rating 1, No Claim Discount (NCD) and No Claim Bonus (NCB)?

Rating 1, NCD and NCB are different terms insurers use to rank your driving history and risk. They all refer to a discount applied to the full premium, which may appear as either a percentage or a rating on your Insurance Certificate.