{"id":618,"title":"AAMI Car Insurance in Australia: A Practical Guide to Comprehensive Cover, Costs and Options","slug":"aami-car-insurance-in-australia-a-practical-guide-to-comprehensive-cover-costs-and-options","lang":"en","description":"Choosing car insurance in Australia involves more than simply looking for the lowest annual premium. Drivers need to consider the level of protection they require, the value and use of their vehicle, the excess that may apply when making a claim, and any exclusions or optional benefits included in the policy.","content":"

Understanding Car Insurance in Australia

Australian motorists generally encounter several different types of motor insurance.

Compulsory Third Party insurance, commonly known as CTP, covers liability for injuries caused to other people in a motor vehicle accident. It does not generally cover damage to vehicles or other property. CTP arrangements differ between Australian states and territories.

Third Party Property Damage insurance is designed primarily to cover damage a driver causes to another person's vehicle or property. It generally does not provide broad cover for accidental damage to the policyholder's own vehicle.

Comprehensive car insurance provides a wider level of protection. According to ASIC's Moneysmart guidance, comprehensive insurance can cover damage to the insured vehicle as well as damage caused to other people's vehicles or property. It can also provide protection against insured events such as theft, fire and certain weather-related damage.

Drivers comparing policies should still review individual Product Disclosure Statements because comprehensive insurance does not mean every possible loss or situation is covered.

What Does AAMI Comprehensive Car Insurance Cover?

AAMI Comprehensive Car Insurance provides cover for accidental loss or damage to the insured vehicle and liability for damage caused to another person's vehicle or property.

Current AAMI product information lists cover for insured events including collisions, theft, storm, hail, fire, bushfire and flood. AAMI also states that liability for damage to other people's property may be covered up to $20 million, subject to policy terms, conditions and exclusions.

Some additional benefits may also form part of comprehensive cover depending on the circumstances. For example, AAMI currently describes hire-car assistance after certain not-at-fault incidents where the responsible driver's required details can be provided. Accessories and modifications fitted to the vehicle may also be taken into account as part of the vehicle's insured value under applicable policy conditions.

Optional benefits are available for an additional premium, including options relating to roadside assistance, windscreen and window glass, and hire-car cover following certain incidents.

These inclusions should not be viewed in isolation. Policy limits, eligibility requirements and exclusions can affect whether a particular claim is accepted.

Comprehensive Insurance Versus Third Party Property Damage

For someone researching Fully Comprehensive Insurance, one of the main decisions is whether the additional protection for their own vehicle justifies the higher premium compared with third party cover.

AAMI's current product comparison indicates that its Comprehensive Car Insurance covers accidental loss or damage to the insured vehicle as well as damage caused to other people's property. Third Party Property Damage cover is primarily designed around liability for damage caused to another person's vehicle or property.

The decision may depend partly on the value of the car.

A driver with a newer or relatively valuable vehicle may find comprehensive insurance more relevant because a major collision, theft or severe weather event could create a substantial replacement or repair cost.

Someone driving a low-value vehicle may instead assess whether the annual comprehensive premium is proportionate to the amount they could receive if the vehicle were written off.

Neither approach is automatically correct. The appropriate level of insurance depends on financial circumstances, risk tolerance and how important access to the vehicle is to the driver.

AAMI Car Insurance Plans and Coverage Options Seniors Can Consider in 2026

AAMI car insurance plans and coverage options for seniors can vary based on each driver’s needs and circumstances. Drivers in the age groups shown above can compare AAMI’s available car insurance options based on their vehicle value, how often they drive, the level of protection they want and their individual circumstances. Coverage options can range from broader Comprehensive protection to more limited third-party cover, allowing drivers to choose a level of protection that suits their vehicle and budget. The age ranges below are intended as a practical guide for comparison and are not age-specific AAMI plans or eligibility categories. AAMI notes that factors such as annual kilometres driven and the drivers listed on a policy may affect premiums.

Age group	AAMI Plans to consider	Why it may be worth comparing
55–64	Comprehensive Car Insurance	Suitable to compare when broader protection is important, including accidental damage, collision, theft, fire and damage to other people’s property.
65–74	Comprehensive + Optional Covers	Drivers who rely regularly on their car may consider Comprehensive cover and compare extras such as Roadside Assist, Hire Car or Windscreen & Window Glass Cover.
74–84	Comprehensive or Third Party Fire & Theft	Comprehensive may suit those wanting broader protection, while Fire & Theft can be considered when a lower level of own-car cover is sufficient.
85–94	Third Party Fire & Theft or Comprehensive	Drivers travelling fewer kilometres or driving a lower-value vehicle may compare the cost of broader Comprehensive cover with Fire & Theft protection.
95+	Third Party Property Damage or broader cover depending on needs	Those driving only occasionally may compare basic third-party property protection against Comprehensive or Fire & Theft based on vehicle value and personal circumstances.

AAMI’s Comprehensive Car Insurance covers accidental loss or damage to the insured car as well as liability for damage to other people’s vehicles or property. AAMI describes it as broader protection than Third Party Property Damage cover.

AAMI’s Third Party Property Damage covers legal liability for damage caused to other people’s vehicles or property, up to $20 million, and provides limited cover of up to $5,000 for damage caused by an uninsured at-fault driver, subject to conditions.

For people wanting something between these levels, Third Party Fire & Theft adds cover for fire, theft and attempted theft, plus benefits including a hire car after theft for up to 21 days and personal property cover up to $500, subject to the policy terms.

How Seniors May Pay Less on Car Insurance in 2026

Seniors over 55 who want to review whether they may be able to pay less for car insurance in 2026 can begin by checking whether their current policy still reflects how they use their vehicle.

For example, motorists who now drive less frequently, have changed where the car is kept, or no longer require certain optional benefits may want to update those details before comparing premiums. It may also be useful to review the chosen excess, as a higher excess can sometimes reduce the premium but may increase the amount payable if a claim is made.

Comparing comprehensive cover, exclusions, excesses and policy features across available options can provide a clearer view of overall value. Any reduction in cost will depend on the driver’s individual circumstances and the insurer’s current pricing criteria.

Understanding Excesses

The excess is another important component of a car insurance policy. It is generally the amount the policyholder contributes towards an accepted claim when an applicable excess is payable.

AAMI Comprehensive Car Insurance may involve different types of excess depending on the driver and circumstances of the incident. These can include a standard excess and, where applicable, other driver-related excesses.

AAMI also offers a Flexi-Premiums excess arrangement. Choosing a higher voluntary excess can reduce the insurance premium, but it increases the amount that may need to be paid if a claim occurs.

Before changing the excess, motorists should consider whether they could comfortably pay the applicable amount at short notice.

What Can Affect the Cost of AAMI Car Insurance?

Car insurance premiums are calculated using multiple risk and policy factors rather than a single characteristic such as age.

AAMI explains that premiums can be influenced by the type of insurance selected, the chosen excess, optional covers, information about the insured risk and government charges. Other factors may include characteristics of the vehicle, where it is kept, vehicle use and information about listed drivers.

Claims history may also affect renewal pricing. Wider factors such as repair costs, expected future claims and insurer operating costs can influence premiums even when a customer's individual circumstances have not changed.

This is one reason renewal premiums should be reviewed rather than assumed to remain broadly unchanged from one year to the next.

ASIC's Moneysmart also recommends comparing policies because insurers can have different premiums, conditions, exclusions and discounts.

What to Check Before Choosing a Policy

Before purchasing or renewing AAMI car insurance, review the Product Disclosure Statement and Certificate of Insurance carefully.

Pay particular attention to the amount covered for the vehicle, applicable excesses, insured events, exclusions, optional covers, repair arrangements and circumstances in which additional excesses could apply.

Older motorists comparing Senior Car Insurance Quotes should apply the same process. Rather than assuming that age alone determines value, compare how each insurer assesses the complete driver and vehicle profile.

Conclusion

AAMI Car Insurance provides Australian motorists with different levels of protection, including comprehensive and third party property options. Comprehensive cover is designed to provide broader protection for accidental damage to the insured vehicle as well as liability for damage to other people's property, subject to the policy's terms and exclusions.

For people researching Over 60s Car Insurance, Over 70s Car Insurance, or Car Insurance Fully Comprehensive, the key consideration is not simply finding a product carrying a particular label. Comparing cover limits, excesses, exclusions, vehicle value and premiums can provide a clearer picture of which policy suits an individual's circumstances.

Regularly reviewing these factors can also help drivers identify ways to manage insurance costs while maintaining an appropriate level of protection.

Disclaimer

This information is general in nature and does not constitute personal financial advice or a recommendation to purchase a particular insurance product. Insurance availability, premiums, coverage, limits, exclusions, discounts and eligibility requirements may vary by provider, location, vehicle, driver profile and individual circumstances. Always review the current Product Disclosure Statement, Target Market Determination and relevant policy documents before making a decision.

References

AAMI — Comprehensive Car Insurance, Car Insurance, current Product Disclosure Statement and Additional Information Guide: AAMI Comprehensive Car Insurance
Moneysmart — Australian Government consumer guidance on car insurance types, premiums, policy comparisons and claims: Choosing car insurance – Moneysmart
AAMI – Car Insurance: AAMI Car Insurance options and comparison

AAMI – Comprehensive Car Insurance: AAMI Comprehensive Car Insurance
AAMI – Third Party Property Damage: AAMI Third Party Property Damage Car Insurance
AAMI – Third Party Fire & Theft: AAMI Third Party Fire & Theft Car Insurance
AAMI – Senior Car Insurance Guide: AAMI Car Insurance Guide for Seniors
AAMI – Windscreen & Window Glass Optional Cover: AAMI Windscreen and Window Glass Cover

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