Uninsured motorist benefit

Uninsured motorist cover protects you from losses if an uninsured driver hits you.

We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!

Uninsured motorist benefit is an option provided by many car insurance providers. It provides cover if an uninsured motorist is involved in a collision with your vehicle and is 100% at fault.

What is an uninsured motorist benefit?

While all car insurance policies provide cover if you should be at fault in a collision with another car, covering the majority of costs from damage, unless you have comprehensive car insurance you have no protection if someone else damages your vehicle. Most drivers generally have some level of insurance, but if they don't there may be no way to recoup the costs involved in an accident.

This is where an uninsured motorist benefit comes in — it can cover you for damages, from injuries sustained in the accident to car repairs.

When does this type of cover come into effect?

If you're in a collision and the other driver is totally at fault and doesn't have insurance, you can contact your insurance provider and make a claim for the damage or injury. The benefit doesn't apply if you're in any way at fault.

Which policies have this benefit?

Cover will vary from insurer to insurer. However, uninsured motorist benefit is typically included in comprehensive cover or available as an optional extra. TPPD and TPFT policies usually offer uninsured motorist benefit as additional cover and often increase your premium. This is due to the added risk of another motorist being at fault in a collision with you, rather than only your personal risk of an at-fault collision being assessed.

How much cover do these policies offer?

Cover varies depending on your policy and any additional cover. On average, insurance providers offer up to $5,000 to cover any damage and towing costs. However, this amount can be higher for comprehensive cover. If you have this benefit through a TPPD or TPFT policy, this amount can be negotiated if your car has a higher value. Be sure to discuss cover limits for uninsured motorist benefit with your insurance provider before you take out a policy.

What are your options when claiming this benefit?

Unless you have comprehensive cover, your options are limited. As standard, the insurer offers the limited amount no matter the extent of damage, additional charges or if your car is considered a total loss.

What should you do following an accident?

If you're involved in an accident where the other driver is at fault and uninsured, first take any possible measures to get to a safe distance from traffic, prevent any further damage or injury and contact any emergency services required. Collect the details of the driver(s) involved, including names, addresses, contact numbers, email addresses, driver's licence and registration numbers. If there are any witnesses to the accident, collect their information as well. Contact your insurance provider as soon as possible to lodge your claim and access any additional benefits your policy gives you.

For more details, read our guide to what to do after a car accident.

Bottom line

We all feel like competent drivers. We all do the right thing and get appropriate car insurance to protect against accidents and unexpected bumps on the road. But there are some still on the roads without insurance and unless you have comprehensive cover, you'll be naked against the cost of a collision with an at-fault uninsured driver. Be sure to ask your insurance provider about their uninsured motorist benefit and consider if it's right for you.

Want to protect your car? Get comprehensive car insurance

Comparing car insurance will not only make sure that you get the right price, but also, that you get the right product. When choosing a policy, don't forget to check out the Product Disclosure Statement to make sure it suits your needs.

Name Product Roadside Assistance Accidental Damage Storm Choice of Repairer Agreed or Market Value
Coles Comprehensive
Optional
Agreed or Market
Finder's summary: With Coles comprehensive car insurance, you could earn double flybuys points at Coles supermarkets and you can get $10 off your Coles grocery bill every time you redeem 2,000 Flybuys points. If your car is damaged, you could benefit from a one-week turnaround on repairs.

⭐ Current offer: Get 10% off your first year's premium when you take out a policy online. T&Cs apply.

Who it might be good for: Coles customers and Flybuys collectors.
Youi Comprehensive
Optional
Agreed or Market
Finder's summary: Youi Comprehensive Car Insurance is one of the few providers to include roadside assistance in its policy. You'll also get access to YouiRewards which gives you discounts on furniture, parking and more. Youi also has a live chat feature on its site to talk through any questions.

Who it might be good for: People over 25 who want comprehensive cover with a focus on customer service.
Virgin Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: Finalists for the 2019 Finder Awards for Best Value Car Insurance, Virgin Comprehensive provides a good level of cover for a decent price.

⭐ Current offer: Get 15% off on your first year’s premium when you purchase a new eligible comprehensive car insurance online. T&Cs apply.

Who it might be good for: People who'd like to manage their policy online 24/7.
Bingle Comprehensive
Market
Finder's summary:Bingle consistently comes up as one of the cheaper insurers out there. It only covers the basics. You don't get to choose your own repairer, you're not covered for personal items in the car and unless you add it as an option, you won't get a hire car if your car is stolen. But this keeps its premiums low.

Who it might be good for: Someone who wants a low-cost option that covers them for the basics.
Qantas Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: You'll be able to choose how comprehensive you want your cover to be with optional extras like choice of repairer and the option of agreed or market value.

⭐ Current offer: Earn Qantas Points for joining and paying your premium. Sign up today and earn up to 20,000 Qantas Points (points awarded will be based on your premium). T&Cs and eligibility apply.

Who it might be good for: People who'd like to earn Qantas Points.
Poncho Comprehensive
Agreed
Finder's summary: Poncho works like a monthly subscription – you pay monthly and can cancel and leave at any time. You can also list multiple cars and drivers under one policy, making it ideal for families and groups living together under one household.

Who it might be good for: People who want their car insurance month to month.
Huddle Black Comprehensive
Agreed or Market
Finder's summary: Huddle's black comprehensive is its cover with highest limits and exclusive benefits. It includes roadside assistance. You can also get up to $2,000 for emergency travel and accommodation and up to $30 million legal liability cover.

Who it might be good for: Someone who wants a 24/7 claims processing.
PD Comprehensive
Optional
Agreed
Finder's summary: PD comprehensive car insurance policy lets you buy, manage, and start your claims process online. It includes cover for emergency repairs up to $500 and free windscreen chip repair. Ability to customise your extras cover.

⭐ Current offer: New policyholders can enjoy 15% off on their first year's premium. T&Cs apply.

Who it might be good for: Those with low claims history and the only driver.
Budget Direct Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: Awarded the 2019 Finder Award for the Best Value Car Insurance, this policy offers solid coverage at a low cost. Budget Direct's claims service has received a 4.2/5 based on nearly 5,000 customer reviews.

⭐ Current offer: Get 15% discount on first year's premium when you take out a policy online. T&Cs apply.

Who it might be good for: People who want a comprehensive policy without breaking the bank.
Stella Comprehensive
Optional
Agreed or Market
Finder's summary: Stella’s a female-focused insurer. It'll cover you if your car is damaged as a result of domestic violence. It offers higher cover for baby gear than most, with up to $2,000 cover for prams, strollers and child seats.

Who it might be good for: Someone who wants a female-centred car insurance policy (it will cover men too).
ahm Comprehensive
Optional
Both
Finder's summary: ahm comprehensive car insurance lets you choose higher excess to reduce your premiums. Its Fixed Kilometre Plan can save you up to 30% compared to its standard comprehensive cover.

⭐ Current offer: Get up to 15% off when you purchase a new car insurance policy. T&Cs apply.

Who it might be good for: People who drive less than 15,000 km per year.
Australia Post Comprehensive
Optional
Agreed or Market
Finder's summary: Australia Post car insurance offers comprehensive cover for things like theft, fire, new for old replacement and emergency accommodation and transport. Cover also extends to anyone who uses your car, not just you.

⭐ Current offer: Get $75 off your first year’s premium when you buy online. T&Cs apply.

Who it might be good for: If multiple people use the one car and you don’t want to worry about listing all drivers.
loading

Compare up to 4 providers

Picture: Unsplash

More guides on Finder

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site