Understanding 4x4 car insurance in Australia

If you’re an owner of a 4x4, 4WD or AWD vehicle, you’ll want to get an appropriate level of coverage for your vehicle. 

Like other car insurance policies, 4x4 car insurance covers you for a range of circumstances where you’ve been in an accident, the vehicle is damaged or stolen. What is covered by your 4WD car insurance policy will depend on the level of cover you choose: third-party property, third-party fire and theft or comprehensive. 

Most insurers will cover you if you choose to go off-road as long as your car's manufacturer has specified that the vehicle can be driven off-road. Ensure you’re covered for this type of adventuring before getting started. A small handful of specialist insurers offer 4x4 car insurance for people who regularly drive their 4x4 off-road.

In terms of the cost of your 4WD car insurance premium, like other car insurances, many factors that impact this. You may find that the cost of your premium will differ depending on whether you pay it annually or monthly. 

Many insurers offer a discount when you pay annually. Another way to save some money on your 4x4 car insurance is by buying online rather than over the phone. You can also compare 4x4 car insurance quotes online to find the best deal before purchasing. If you have a non-4x4 car as well, your insurer may offer a discount if you group your insurance policies with them.

Some of the key factors that insurers will take into account when calculating your 4x4 car insurance premium include: 

• Car details: Year, make, and model
  
  
• Agreed value or market value: You can choose to insure your vehicle for agreed value or market value. If you choose the agreed value, you and your 4x4 car insurance company will agree on a value of the car that would be the amount you get paid if it's written off. Whereas market value will be calculated at the time of the incident, which triggers the claim and based on the car's value at that time. You may find one option is cheaper than the other. Agreed value is usually only beneficial if you’ve made personal modifications to the car, which may not be included in any market valuation.
  
  
• What your vehicle is used for: Most insurers will cover your 4x4 for recreational usage, daily usage by a working professional or trade worker and rideshare. Using the 4x4 for courier work, hire car work, taxi, or removalist work will not be covered under a standard policy. If you plan to use the 4x4 for these, you’ll need to explore companies offering commercial car insurance.
  
  
• Driver details: This will include age, driving experience and past claims experience of the driver named on the policy and can significantly impact your premium. Experienced drivers with great driving history and zero past claims have lower premiums. Inexperienced drivers or drivers with poor driving histories have higher premiums.
  
  
• Vehicle Location: Where your 4WD vehicle is predominantly parked is also important in calculating premiums. If the 4WD is mostly parked in a covered and secured area, your premium will be lower as the insurer will see it as being less prone to theft or damage.

Some of the key inclusions you may want to consider prioritising for in your 4wd car insurance policy in Australia are: 

• Coverage anywhere in Australia - particularly if you intend to travel
• Offers essential repairs to make the car roadworthy before being driven to a garage
• All modifications and accessories are listed on the certificate of insurance
• Hire-car available for a period after you make a claim and don’t have the car
• Inclusion of personal effects cover, emergency travel and accommodation costs, towing and storage costs resulting from loss or damage, off-road recovery cost, and trailer cover 

You may also want to see if there is an inclusion whereby if the car is written off within the first 24 months of you owning it and you’re the first registered owner, you get a brand new replacement. With all these inclusions, you want to ensure you don’t have to pay anything extra, and they’re all part of the standard policy.  

Another part of your 4x4 car insurance policy you’ll need to consider the costs of and will impact your premiums is the excess. Excess is the amount you pay at the time of a claim rather than paying the full cost of the claim. You may find the excess amount is higher on your 4x4 car insurance policy. This may prevent you from making smaller claims that are less than the excess for smaller accidents or less costly repairs.  

One or more excesses can be offered to you when getting a quote or associated with your policy. These are:

• Basic excess - every time you make a claim, you have to pay this excess.
• Inexperienced and learner driver’s excess. 
• Unlisted young driver excess
• Water crossing excess 
• Special excess as listed on the policy 

Before purchasing your 4x4 car insurance policy, it would be wise to read the product disclosure statement (PDS), financial services guide (FSG), and target market determination (TMD) guides to understand the coverage and excesses and limits of the policy.

When getting quotes online for 4wd car insurance, you may want to look at the optional extras the insurer offers. You can add these options to your policy for an extra cost. Some of these options may be:

• Window glass and windscreen cover
• Additional off-road recovery cost
• Additional Australia-wide personal effects cover
• Roadside assistance on sealed road
• Additional hire car in case you cannot drive the vehicle as a result of damage to the vehicle due to an insured event.

Whether you have a 4WD car to experience the vast Australian outback and the beaches or just explore locally, you may have made quite a few modifications and added accessories. You’ll want to ensure that all of these modifications and accessories are completely covered by your 4wd car insurance policy. You may need to specify when you get a quote or first sign up for the policy what modifications and accessories are on your vehicle. We recommend you read the PDS thoroughly to understand how your 4x4 car insurance product covers your accessories and modifications. In most cases, these have to be listed on the insurance certificate.