Spring brings warmer weather and the urge to take longer drives, whether for weekend getaways, interstate road trips, or exploring regional Australia. Before you load up the car, take 15 minutes to verify your car insurance policy covers you adequately for these extended journeys. Most standard policies apply Australia-wide, but coverage limits, excesses, and optional extras can vary significantly between insurers and policy types.

What Coverage Type Do You Have?

Your policy type determines what’s covered when you’re far from home. Comprehensive car insurance covers damage to your vehicle plus third party claims, making it the most suitable option for longer drives where repair costs and towing distances increase. Third party property covers only damage you cause to others’ vehicles or property. Third party fire and theft adds limited cover for your own car, but only for fire damage or theft. Compulsory Third Party (CTP, often called the green slip in New South Wales) covers injury to people, not vehicles or property, so you need additional cover beyond CTP for any road trip (ASIC MoneySmart, 2024).

According to foundational texts on risk management such as Principles of Finance, insurance transfers financial risk from individuals to insurers, and the level of cover you choose should match your exposure. For longer drives with higher risks of accidents, comprehensive cover typically offers better financial protection.

Verify These Policy Details

Check your Product Disclosure Statement (PDS) for geographical limits. Most Australian policies cover you anywhere in Australia, but some budget policies restrict cover to specific states or impose mileage caps. Confirm your policy includes the states and territories you plan to visit.

Review your excess amounts. Your basic excess plus any age-based or inexperienced driver excess applies if you claim. For a spring road trip, understand the total excess you would pay if your car were damaged interstate (excess amounts can range from A$400 to A$1,500 or more depending on your policy and driver profile). Higher excesses reduce premiums but mean larger out-of-pocket costs if you claim far from home.

Verify your sum insured or agreed value. Comprehensive policies pay either market value (what your car is worth at claim time) or agreed value (a set amount you and the insurer agree on when you take out the policy). For longer drives, agreed value provides certainty about payout amounts, while market value policies may depreciate over time (Insurance Council of Australia, 2024).

Roadside Assistance and Optional Extras

Standard car insurance policies typically do not include roadside assistance. If you break down 500 kilometres from home without roadside cover, towing to the nearest repairer is your cost. Many insurers offer roadside assistance as an optional extra (typically A$80 to A$150 per year), covering towing, battery jump-starts, flat tyre changes, and emergency fuel. For spring road trips through regional areas, roadside assistance is worth adding to your policy if you don’t already have it through a motoring organisation such as NRMA or RACV.

Read also: How to Compare Car Insurance Quotes in Australia the Right Way

Check whether your policy includes a hire car after an accident. Some comprehensive policies include a rental vehicle for a set period (often 14 to 21 days) if your car is undriveable after an insured incident. This matters more on road trips where you may be far from home and public transport.

When to Update Your Policy

Contact your insurer before your trip if you’re adding drivers (children home from university, a partner who doesn’t normally drive your car) or significantly changing your vehicle use (fitting a roof rack, towing a camper trailer, carrying expensive sporting equipment). Some modifications or uses require notification and may affect your premium or cover.

If your car’s value has changed significantly since you last renewed, update your agreed value to avoid being underinsured. Underinsurance means you receive less than replacement cost if your car is written off.

Next Steps

Read your PDS to confirm coverage details before you drive. Check the Target Market Determination (TMD) to verify the policy suits your circumstances. For personalised advice on whether your current cover is adequate for longer seasonal drives, speak with a licensed insurance adviser or your insurer directly. Coverage varies by insurer and by state, so confirm the specifics that apply to your policy.

General Advice Warning: This article provides general information only and does not take into account your objectives, financial situation, or needs. Before acting on any information in this article, you should consider whether it is appropriate for you, read the relevant Product Disclosure Statement (PDS), and consider obtaining personal advice from a licensed insurance adviser. Car insurance coverage, excesses, and availability vary by insurer and by state or territory. Always verify current terms in the PDS and confirm details with your insurer or a licensed adviser for your personal situation.