Your personal car needs protection too
Accidents, theft, and hail damage can occur while you're building your business; therefore, your personal vehicle needs insurance. Private Motor protects your car and your finances when the unexpected happens.
What could go wrong
Your car gets you to meetings and client sites, keeping your business on the move. One accident, one theft, one hailstorm, and you're without transport and facing thousands in replacement or repair costs. Comprehensive insurance means you can get back on the road. Third-party only or no insurance means you're paying out of pocket or putting the replacement on a credit card.
The total loss accident
You're driving home after a long day building your business. Someone runs a red light and t-bones your car. Your $35,000* car is written off. You're okay, but now you have no car and still owe $28,000* on the loan. Insurance gives you $32,000* market value. You're $6,000* short of clearing the loan before you can even think about a replacement.
The stolen car
What this actually covers
Private Motor Insurance
Private Motor Insurance comes in three levels:
Comprehensive (highest cover):
- Damage to your car (accident, fire, theft, vandalism, storm, hail)
- Damage to other people's cars and property
- Theft of your vehicle
- Windscreen and window damage
- Hire car after the incident
- Personal belongings in car (limited)
- Legal liability and legal costs
Third Party, Fire & Theft:
- Damage to other people's cars and property
- Your car if stolen
- Your car is damaged by fire
- Legal liability
- Does NOT cover: accident damage to your car, storm/hail damage to your car
Third Party Property Only (legal minimum):
- Damage to other people's cars and property only
- Legal liability
- Does NOT cover: any damage to your car whatsoever
When you need this
Protecting your personal transport
You need this if you:
- Own a car (legally must have at minimum third-party property)
- Finance a car (lender requires comprehensive)
- Can't afford to replace your car from savings
- Drive regularly (higher accident risk)
- Have an expensive or newer car
Comprehensive vs. Third-Party:
If your car is worth more than $5,000, consider getting comprehensive coverage. Third-party options may only save money upfront, but they leave you exposed to significant losses.
For founders and business owners with personal vehicles
Key considerations
- If you use your personal car for business visits, you may need Commercial Motor Insurance instead
- Check your policy for business use exclusions
- Don't claim business use on personal motor insurance, it may void your policy
Common questions
Do I really need comprehensive if my car is old?
Depends. If your car is worth under $5,000 and you could replace it from savings, third-party might be enough.
However, if you can’t afford to lose $5,000 overnight, consider comprehensive coverage. One accident and your transport is gone.
Can I use my personal car insurance for business visits?
Most personal motor policies exclude business use beyond commuting to a fixed workplace. Visiting clients, deliveries, or carrying business equipment often requires Commercial Motor Insurance.
What's the difference between market value and agreed value?
Market value is what the insurer determines your car is worth at claim time (which may be less than you expect). Agreed value locks in a specific payout amount upfront. An agreed value is better for newer or modified cars.
Does my insurance cover my Uber or food delivery driving?
No. Rideshare and food delivery are commercial activities requiring specialised insurance. Using your car for Uber, Deliveroo, or similar on personal insurance voids your policy.
What if I lend my car to a friend and they crash it?
Most policies cover nominated drivers or anyone driving with your permission (please refer to your Product Disclosure Statement, or PDS, for details). However, your premium may increase after a claim, and you'll be responsible for the excess, not your friend.
Can I claim for hail damage from a storm 6 months ago?
You must report claims promptly (usually within 30-60 days). Late claims may be denied. If you notice any damage, report it immediately, even if you don’t intend to make a claim yet.
What else might I need?
Private Motor Insurance covers your personal vehicle, but not everything:
If you use your car for business:
You need Commercial Motor Insurance to cover business use, including client visits, deliveries, and carrying business equipment.
If you do rideshare or delivery driving:
You need specialised rideshare insurance; personal motor policies exclude commercial use.
If you own multiple cars:
Some insurers offer multi-car discounts; insuring both cars with the same insurer can result in better rates.
If you want mechanical breakdown cover:
Car insurance covers accidents and theft, not mechanical failures. For breakdowns, look at extended warranties or mechanical breakdown insurance.