.svg)
Insurance for a 4WD
Insurance for a 4WD
Written by
Kervin Mathew
Edited by
Laura Crowden
Reviewed by
Adrian BennettCompare car insurance policies the easy way
Save time and effort by comparing a range of car insurance quotes with iSelect
Long story short
Standard insurance can cover your 4WD
Most insurers cover 4WDs under standard car insurance, although some insurers also offer policies specifically tailored for 4WDers who do a lot of off-roading.
4WD insurance need not cost a fortune
While 4WDs with extensive modifications and expensive price tags can mean higher premiums, insuring you’re average 4WD may not necessarily break the bank.
Modifications can increase premiums
You’ll need to let your insurer know if you’ve added suspension upgrades, special tyres and other mods. Some insurers may even limit coverage based on your customisations.
Off-road recovery services have limits
It helps to know what’s covered under your insurer’s off-road recovery service from towing limits to restricted areas. Check the T&Cs before exploring the unknown.
Do I need 4WD insurance?
Four wheel drives (4WDs) are a different breed of vehicle. They’re built and equipped to take on terrain that’ll have a hatchback running, tailpipe between the rear tyres. But that doesn’t mean a 4WD won’t need rescuing when it gets stuck in a rather muddy patch.
The good news is most standard car insurance policies can cover your 4WD in a similar way they would cover any other type of car. Some standard car insurance policies may also extend coverage to include:
- reasonable driving off road or on the beach
- modified suspension, engines, exhausts and more
- an unbraked trailer up to a specified amount
- guaranteed repairs over the life of the vehicle.
To some, taking their modded-out monster into the rugged outback might sound like an average Tuesday. If that sounds like you, then you might need to look for a specialist policy tailored to cover your 4WD, its modifications and even additional gear for off-road adventures like fridges and camping equipment.
What kind of car insurance covers 4WDs?
Like any car, 4WD insurance can range from compulsory third-party (CTP) cover though to the highest level of cover – comprehensive car insurance.
Compulsory third party (CTP) insurance
CTP insurance is the policy you’re required to hold. It will cover you if you end up injuring another person in a car accident, which could save you a bucket of cash in medical and legal costs. However, it won’t cover any repair costs – whether it’s for your car or the other person’s.
Third-party property
This one isn’t mandatory, but it’s definitely useful! Third-party property helps cover damage to other people’s property, so if you get into a bingle with another car (and you’re the one at fault), then this cover can help pay for the repairs. However, it only pays for the other person’s property. It won’t cover any of the repair costs for your 4WD.
Third-party fire and theft
Third-party fire and theft will give you the same cover as third-party property, as well as cover for your 4WD if it’s stolen or damaged by fire. Still, it won’t cover your 4WD for repairs if you get into a collision.
Comprehensive insurance
Now we come to the cream of the crop. Comprehensive insurance covers everything mentioned above, but can also help cover the cost of repairs to your 4WD if you get into an accident, whether you’re the one at fault or not. Plus, you’ll often get cover for hail and storm damage. You can also choose to include optional extras like a hire car or roadside assistance (at additional cost).
Are 4WDs always more expensive to insure?
Some 4WDs can cost a small fortune to insure – but this doesn’t apply to every 4WD. In fact, when it comes to premiums, there’s a simple factor that’s probably more important than the type of vehicle – it’s the car’s price tag.
A car with parts that are cheaper to repair or replace will usually cost less to insure. For instance, some higher end or luxury brands like a Volvo or a Lexus may cost more to insure than a 4WD with cheaper parts.
Of course, when it comes to 4WDs, you’d also have to consider modifications. You might think mods will make your 4WD more expensive to insure, and that’s often true – if mods increase the overall value of your car, that can carry through to your premiums.
How much is car insurance for 4WDs?
There are several other factors that can affect how much you’ll pay for your car insurance. If you’re after a cheaper premium, a few small tweaks might end up saving you a decent amount of cash:
- Excess: An excess is how much you pay out-of-pocket when you make a claim on your insurance. If you volunteer to pay a higher excess, this will usually result in lower premiums.
- Parking: Keeping your 4WD in a garage or carport overnight helps protect it against thieves, vandals and the extreme Aussie weather. As a bonus, it can also reduce your premiums.
- Age restrictions: Some insurers will let you place a restriction on your policy where no-one below a certain age can drive your car. These restrictions often provide a discount on how much you pay.
Just remember that different insurers have different ways of calculating premiums. Some will even offer policies where the premiums are based on how many kilometres you drive each year. So have a look at the kinds of policies that are out there and compare the various benefits and premiums.
What should I consider when comparing 4WD insurance?
A low premium isn’t the be-all and end-all when it comes to car insurance. Okay, it’s pretty darn important, but it isn’t the only thing that’s worth your attention. You’ll also want to make sure that you’ve got the right amount of cover. For this reason, it might be a good idea for 4WD owners to consider the following:
Has the vehicle been modified?
From special tyres to suspension upgrades, you’ll need to declare all the modifications to your 4WD. Keep in mind that certain modifications such as lowered suspension may make the car ineligible for cover with certain insurers.
Is the windscreen covered?
Some comprehensive policies will help cover the costs of repairing your windscreen. While this may require you to pay an excess, some insurers allow you to select a reduced excess for window glass claims at an additional cost.
Do I want agreed or market value?
Many comprehensive policies offer a choice between agreed and market value cover. This will decide what you get if your car is stolen or written off. An agreed value policy will pay out a fixed sum, while a market value policy is based on how much your car is worth at the time of the accident.
Is off-road recovery cover included?
Yes, but it generally comes with limitations. For example, an insurer’s recovery service might not be of much help if you’re in a restricted area. So, you might have to pay thousands of dollars for an independent recovery service on top of potential fines for illegal off roading.1For more information, see Victoria State Government – Illegal trail bike riding and four-wheel driving on the rise in Victoria
Again, a lot of this information will be covered in the product disclosure statement (PDS) for your car insurance policy. It should note the kinds of modifications that won’t be covered and all the optional extras that you can get.
Helpful tip:
It’s easy to feel adventurous in a 4WD. That’s what they’re for! Though sometimes your sense of adventure may unintentionally land you and your vehicle in a ditch in the middle of nowhere. While roadside assistance is a popular optional extra with comprehensive cover, keep in mind that many insurers may have limits on their roadside assist recovery services, such as not recovering vehicles in areas that cannot be accessed by two-wheel drive or in extreme weather conditions.
Adrian Bennett
General Manager for General Insurance
Frequently asked questions
Will 4WD insurance cover beach or off-road driving?
Some insurers offer comprehensive car insurance policies that cover 4WDs for off-road and beach driving. However, they might require that reasonable precautions are taken to prevent damage, and that the 4WD isn’t used for racing, tests, trials, rallies or contests.
However, this also depends on the terms of your policy. Insurers differ when it comes to the kinds of events they’re willing to cover. You’ll always want to start with the product disclosure statement (PDS) for your policy – read it carefully and check if any exclusions on off-road driving might apply.
What is the difference between 4WD and all-wheel drive (AWD)?
This one’s not as tricky as it sounds. Let’s think about how much power from the engine reaches each wheel and how that translates to each vehicle type’s functionality.
- A 4WD can distribute maximum power evenly across its wheels, so the driver gets either a push from the back or a pull from the front as needed. This makes it suited to rough and uneven terrain.
- In an AWD, all wheels are powered by the engine but to varying degrees. It’s reputation as a stable commuter vehicle makes it a safer option for the road or maybe some light off-roading with the family.
Here’s how AWDs and 4WDs compare in terms of insurance.
- 4WDs are built for rough driving and more likely to be exposed to hazards while being used off road. Thus, the potential for damage can be higher. There’s also the question of extensive modifications, which are more common in the 4WD community. For these two reasons alone, insurers can decide to lift premiums for 4WDs.
- AWDs are your typical family car. Designed for the everyday commute and to keep its occupants safe. And let’s face it, you’re more likely to see an AWD fitted with child seats and a ‘baby on board’ sticker – as opposed to a bull bar and super-sized wheels. That’s why insurers might look more favourably on AWDs.
Do I need extra insurance to tow a trailer or caravan?
A comprehensive car insurance policy might be able to cover a trailer or caravan if it’s accidentally damaged or stolen. Though, there may be limitations to what’s covered depending on circumstances of the incident and regardless of the amount of damage.
For example, some policies will only cover your caravan or trailer if it’s damaged in a collision while being towed by you.
If you feel like your castle on wheels needs a wider moat, then maybe caravan and trailer insurance fits the bill. Here are some of the events it might cover:
- Any amount of accidental physical damage or loss, including theft
- A new replacement after a total loss with two years of registration
- Damage or loss of the contents of your trailer or caravan, including food spoilage
- Towing to the nearest repairer after a covered incident
Do I need a 4WD car?
Try asking yourself these questions:
- Am I more of a thrill-seeker or a hermit?
- Do I earn my living sitting at a desk or behind the wheel of a tractor?
- Do I spend more time herding my toddlers to school or a flock of sheep into the barn?
- Do I live somewhere near the city, or in a town that could pass off as a Mad Max movie set?
Maybe that last one was exaggerated, but you get the idea.
Jokes aside, owning a 4WD has its pros and cons. It’s rugged, built tough and a thrill to drive on almost every terrain. However, it can be more expensive to maintain, it can seem like overkill for the everyday commute and its bulk might make finding a spot in your local Woolies parking lot a bit tricky.
Ultimately, it boils down to what you think fits your lifestyle. If you’re the occasional weekend adrenaline junkie, maybe a 4WD might cut it. If you’d rather be melting into the sofa browsing through Netflix, maybe not.
How do I compare car insurance for my 4WD?
Regardless of the wheels you drive (or how they’re powered), you can use iSelect’s handy comparison tool to explore policies from our range of providers and find one that suits your needs. Just provide the details of your 4WD and we’ll give you a list of insurers who can get you covered. It’s that easy.
Get started on comparing car insurance policies!
Save time and effort by comparing a range of car insurance quotes with iSelect
iSelect General Pty Ltd (ABN 90 131 798 126. AFSL 334115) has partnered with Compare the Market (ABN 83 117 323 378. AFSL 422926) to compare a range of car insurers and policies. Not all providers in the market or all policies offered by the partners are compared and not all policies or special offers are available to all customers.
A number of our participating general insurance brands are arranged by Auto & General Services Pty Ltd ACN 003 617 909 on behalf of Auto & General Insurance Company Limited 111 586 353, both of which are related entities of iSelect Limited. Our relationship with those companies does not impact the integrity of our comparison service. Click here to view iSelect’s range of providers.
Any advice provided by iSelect is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice iSelect gives you, having regard to your personal situation, before acting on iSelect’s advice or purchasing any policy. You should consider iSelect’s Financial Services Guide which provides information about our services and your rights as a client of iSelect. iSelect receives commission for each policy sold that is a percentage of the premium or a flat fee. Ask us for more details before we provide you with any services.