Insurance Policy

Insurance Policy

A car insurance policy is an agreement between the policy holder and the car insurance provider. A car insurance policy states all the inclusions and exclusions of what you are covered for and what you are not.


Most of these are listed in the product disclosure statement (PDS), so make sure that you read this before you agree.

There are three different levels of car insurance that you can choose to take out a policy for:

  • Third party property
  • Third party fire and theft
  • Comprehensive car insurance

Comprehensive car insurance is the highest level of car insurance that you can purchase. When you take out a policy for this type of car insurance you are covered for damage done to your car as well as other vehicles involved. This type of car insurance therefore costs more than the other two types but at least you can rest assured knowing that you have the right cover.


If you are in the market for comprehensive car insurance, shop around and compare car insurance online to find a policy that not only costs you less but also that covers you for more.

When applying for a quote, most car insurance companies allow you to pick and choose from a range of extra options to include on your policy. That way you can tailor your car insurance policy to suit your needs.


For instance some offer a range of policy benefits such as accident hire car benefits, no claim discount protection and roadside assistance. Be aware that if you want to include these on your policy you will more than likely have to pay extra. These extra options and the prices will be vary between car insurers, so make sure you compare to see which policy suits you best.


Before you take out a policy make sure you not only read the inclusions but the exclusions as well as these are the things that you are not covered for such as wear and tear on the car. Again these may vary between car insurance companies.

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Learn more about car insurance

Can you insure your car for 6 months?

Most Australian insurers won’t offer you a 6-month car insurance policy, so you may need to buy a policy that covers your car for damages and cancel it after six months. You will need to purchase comprehensive car insurance to protect your car from accidental damage, theft, vandalism, or natural disasters.. 

Consider checking whether your 6-month comprehensive car insurance will cost more if you pay monthly or six-monthly premiums instead of a one-time annual premium. Another question to ask the insurer is whether you’ll need to pay administration or cancellation fees when you cancel the policy.

Alternatively, you can look for a suitable ‘pay as you drive’ car insurance policy, which usually offers you the coverage of a comprehensive car insurance policy but only requires you to pay for the distance driven. Such a policy may not be the ideal 6-month car insurance plan as it is based on how much you drive rather than for how long. If you need to drive a lot, you may end up paying more than you’d pay for regular car insurance. 

Does insurance cover a stolen car if keys were in the car?

A car insurance policy that covers the theft of your car, such as third party fire and theft insurance, usually covers a stolen car, even if the keys were in the car’s ignition.

However, your insurer may deny the claim if you live in an area where there have been several car robberies reported recently. They will see you leaving the keys in the car as a case of negligence. In such cases, your insurance provider may even expect you to have installed anti-theft security measures in your car. 

You may need to confirm whether or not you left your keys in your car, and if they had been stolen or misplaced, before filing your car insurance claim. The loss or theft of your car keys may be covered by a comprehensive car insurance policy, but usually as an optional item.

If you can confirm that your car keys were stolen, mention this in your claim as this will help establish that your car was not stolen as a result of your negligence.