If you drive in Australia, car insurance isn’t just a legal requirement in most states — it’s also a smart way to protect yourself against unexpected costs. From accidents to natural disasters like floods and bushfires, the right policy ensures peace of mind.
In 2025, Australian drivers have plenty of choices, from well-established giants to newer, digital-first providers. In this guide, we’ll cover the top car insurance providers in Australia, what makes them stand out, and how to pick the right plan.
Why Car Insurance Matters in Australia
Australia has millions of registered vehicles, and accidents are unfortunately common. Repair costs for even minor crashes can run into the thousands. Comprehensive insurance can cover damage to both your own car and others’, while third-party policies protect you from liability if you damage someone else’s property.
Car insurance also covers:
- Theft and vandalism
- Storm and flood damage
- Fire damage
- Liability claims from other drivers
Types of Car Insurance in Australia
- Comprehensive Insurance – Covers both your car and others, plus theft, weather, and fire damage.
- Third-Party Property – Covers damage you cause to other cars or property, but not your own.
- Third-Party, Fire & Theft – Adds theft and fire cover on top of third-party protection.
- Compulsory Third Party (CTP/Green Slip) – Legally required in all states; covers injury or death of other people in an accident (but not car repairs).
Top Car Insurance Providers in Australia (2025)
1. NRMA Insurance
- Why it’s popular: One of Australia’s oldest and most trusted insurers.
- Highlights:
- Comprehensive plans with optional roadside assistance.
- Flexible payment options.
- Discounts for multiple policies.
- Best for: Families and long-term policyholders.
2. Allianz Australia
- Why people trust it: Known for global strength and wide coverage options.
- Highlights:
- Strong comprehensive coverage.
- Easy online claims process.
- Good multi-policy discounts.
- Best for: Drivers who want an internationally recognized insurer.
3. AAMI Insurance
- Why it stands out: Popular for its easy, online-first approach.
- Highlights:
- Comprehensive and third-party policies.
- Lifetime guarantee on repairs done by AAMI’s network.
- Discounts for safe drivers.
- Best for: Tech-savvy drivers who want quick, digital claim handling.
4. Budget Direct
- Why it’s unique: Award-winning for affordability and customer satisfaction.
- Highlights:
- Consistently lower premiums.
- 24/7 claims service.
- Multiple award wins in 2024 and 2025.
- Best for: Budget-conscious drivers.
5. RAC (State Auto Clubs)
- Why drivers love it: State-based auto clubs (like RACV in Victoria or RACQ in Queensland) provide strong insurance options.
- Highlights:
- Member benefits beyond insurance (travel, discounts, roadside).
- Reliable claims support.
- Regional-specific offers.
- Best for: Drivers who want extra perks beyond insurance.
6. Youi Insurance
- Why it’s different: Customizes policies based on lifestyle and driving habits.
- Highlights:
- Tailored quotes (you only pay for what you need).
- Strong reputation for customer service.
- Fast claims approval.
- Best for: Drivers who want a personalized insurance experience.
Cost of Car Insurance in Australia (2025)
The average cost depends on age, driving record, location, and type of car. Typical ranges are:
- Comprehensive: $1,000 – $1,800 per year.
- Third-Party Property: $400 – $700 per year.
- Third-Party, Fire & Theft: $500 – $900 per year.
💡 Younger drivers (under 25) usually pay much higher premiums due to higher risk.
Tips for Choosing the Best Provider
- Compare Online Quotes – Always get multiple quotes before deciding.
- Check Excess (Deductible) – Lower premiums may mean higher excess.
- Look at Add-Ons – Roadside assistance, hire car after accident, windscreen cover.
- Review Claim Satisfaction – The best insurer isn’t just cheap — it’s the one that pays out smoothly.
- Bundle Policies – Combine car, home, and contents insurance for discounts.
Final Thoughts
In 2025, Australian drivers have more choice than ever before. If you want big-name trust, Allianz or NRMA are safe picks. For digital simplicity, AAMI is a leader. If affordability matters most, Budget Direct consistently wins awards. And if you prefer a customized approach, Youi has your back.
Ultimately, the best car insurance comes down to your driving habits, budget, and the type of coverage you need. Compare carefully, and you’ll find the right protection at the right price.