Types of car insurance explained

No, car insurance doesn’t generally cover engine failure, especially when the failure is due to wear and tear, age, or lack of regular maintenance.

However, car insurance may cover engine damage if it’s caused directly by an insured event, such as an accident, flood, fire or vandalism. Engine damage due to accidental addition of incompatible fuel might also be covered depending on your policy.

Always check your Product Disclosure Statement (PDS) for the specific conditions, limits and exclusions that apply.

Need help with NRMA roadside assistance?

Yes, car insurance can help cover theft, although how you’re covered varies depending on your policy and its specific terms.

Our Comprehensive, Comprehensive Plus and Comprehensive Basic Car Insurance policies cover your car if it’s stolen, vandalised or damaged by someone trying to steal it. These policies also help cover damage your car causes to other people's vehicles or property, and damage caused by accidents, fires, storms, or floods¹.

Third Party Fire & Theft Car insurance helps cover your car if it’s stolen, vandalised, or damaged during a theft attempt.

Cover also includes:

• fire damage
• damage you cause to other people’s property in an accident (up to $20 million)
• alternative transportation if your car is stolen or can’t be driven because of theft¹
• damage to your car caused by an uninsured driver who causes an accident (up to $5,000)¹
• towing if your car can’t be driven due to theft or a covered event.

However, Third Party Fire and Theft Insurance does not cover damage you cause to your own car, injuries to you and other people or storm, hail, or flood damage.

No, we don’t offer a low-kilometre or pay-as-you-drive policy that tracks how far you drive.

Learn more about Comprehensive Basics.

Yes, hail damage to your car can be covered by Comprehensive Car Insurance if it is caused by an event we cover.

For example, our Comprehensive Basic, Comprehensive, and Comprehensive Plus all cover damage to your vehicle caused by fire, theft and extreme weather, including hail¹.

For more information see: Motor hail claims process.

Car insurance may cover wildlife collisions with kangaroos or other Australian wildlife.

Under our Comprehensive Car Insurance policies, you’re covered for damages to your car and for damage to other people’s vehicles and property, which may include animal-related damage.

Check out our guide to safer winter driving to learn more.

Yes, depending on the policy, flood damage could be covered by car insurance.

For example, Comprehensive Basics Car Insurance can include cover for damage caused by fire, storms and other severe weather events, such as floods¹.

Car insurance can provide a limited level of cover for a trailer in some circumstances.

For example, if you’re involved in an incident where the trailer attached to your vehicle is damaged by a third party, the cost to repair or replace the trailer can be covered by an NRMA Comprehensive Car Insurance policy. Keep in mind that it is only to a specified limit depending on your policy type, and any damage to the contents of the trailer would not be covered.

For damage to a trailer caused by theft, storm, fire and more, consider Trailer Insurance.

Contact us to discuss your vehicle use and what policy may suit your needs.

For business use, you might consider a commercial insurance policy.

Our Commercial Motor Vehicle Insurance policy offers 3 levels of cover for cars, vans, utes, trailers and light trucks used for business, including:

1. Comprehensive: Covers fire, theft, accidental damage to your vehicle, trailers attached to your vehicle (up to $2,500), third-party property damage, signwriting, damage to goods in transit in your vehicle and more.
   
   
2. Fire Theft & Third Party: Covers legal liability (limits available up to $35 million), third party property damage, fire and theft, trailers attached to your vehicle (up to $2,500), and hire vehicles after a theft or fire (up to $3,000).
   
   
3. Third Party Liability: Covers legal liability (limits available up to $35 million) and third-party property damage caused to others involving your vehicle.

No, we don’t currently offer safe-driving discounts, however this may change over time.

Visit our discounts page for the latest up-to-date information.

Yes, NRMA Insurance can offer coverage to international drivers, if they hold a valid international driver’s licence and follow local state and territory laws.

However, additional excess fees may apply based on your age and experience.

You should be licensed to drive the specific type of vehicle to maintain your coverage.

Yes, we do! Check out our discount page for the latest information as it’s subject to change.

Note: our previous loyalty discount has been discontinued. Any future offers will be displayed on the online discount page.

We don’t offer a specific policy for multiple cars, but you can consider taking out separate car insurance policies for each vehicle you or your family may own.

If you hold more than one eligible NRMA Insurance product, you may qualify for a discount based on the number of products you hold.

Check our customer discounts page for the latest information.

Yes, but it depends on your policy and the nature of the incident.

• Comprehensive Plus: Automatically includes rental car cover if your car is stolen or can’t be driven after an accident that’s not your fault or after any incident we cover¹.
  
  
• Comprehensive: Hire car cover is an optional benefit that can be added to your policy if your car can’t be driven after any incident we cover.
  
  
• Third Party Fire & Theft: Covers a rental car for up to 21 days if your car is stolen or can’t be driven because someone tried to break into it¹.

In car insurance, the terms “market value” and “agreed value” help determine how much you may be paid if your car is written off or stolen and can’t be recovered.

Market value: refers to what your car would reasonably sell for as determined by the insurer. This is based on the car’s age, make and model, condition and mileage, as well as recent sale prices for similar cars.

Agreed value: refers to the amount we agree to cover your car for, based on a bracket of acceptable values we provide and is shown on your certificate of insurance. The agreed value may include any modifications, options or accessories attached to your vehicle, as well as the GST, registration and CTP Insurance, and other on-road costs.

When you sell your car, car insurance doesn’t automatically move to a new vehicle or cancel.

If you’re selling an insured car, you can contact us to cancel that car's policy or to transfer your cover to a new car (if the new vehicle meets the underwriting rules).

Feeling stuck? Simply give us a call on 132 132.

Yes, car insurance premiums include Goods and Services Tax (GST). All dollar values described in your policy include GST, unless we expressly state otherwise.

If you’re a business registered or required to be registered for GST purposes, then you’ll need to inform us of:

• your Australian Business Number (ABN)
• the percentage of any input tax credit you’ve claimed, or are entitled to claim, on the premium.

According to the Australian Taxation Office, for business owners, car insurance could be tax-deductible in Australia, but only for certain work-related portions of the expenses.

Car insurance for personal use is generally not considered tax-deductible.

For more information, see ATO guidance: Deductions for motor vehicle expenses.

This is general information only and does not constitute tax advice. We recommend consulting a qualified tax adviser or visiting the Australian Tax Office website for guidance on your individual circumstances.

The cooling-off period begins from the date we issue your policy, and it lasts for 21 days.

During the cooling off period, you can cancel your policy and get a full refund of the premium you paid us, provided no claims have been made on the policy.

Here’s how to get car insurance with us:

1. Find your policy: Explore our car insurance options and see which one suits you and your needs.
   
   
2. Get a quote: Find out how much your insurance might cost by choosing a policy and providing some details about your vehicle and driving habits.
   
   
3. Weigh up your options: Consider the inclusions and exclusions of our policies alongside your budget and needs.
   
   
4. Finalise and pay: Once you’ve decided, you can purchase your policy and start your cover.

Discover how we calculate your premium by reading our Premium, Excess & Discounts Guide.