NRMA Car Insurance Review

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The NRMA has a long history in Australia. It opened in 1920 as the NSW branch of the National Roads Association, which moved from focusing on road improvements to motorist safety, driver education, roadside accident support, petrol comparison, and most recently the roll-out of an electric vehicle charging network.

It began offering motor insurance to members from 1925 as the National Roads and Motorists’ Association. Now, the NRMA offers car and home insurance in every state and territory except Victoria, provides roadside assistance across the country (relying on reciprocal member organisations in areas beyond NSW and the ACT), and is a compulsory third party (CTP) insurance provider in NSW, the ACT and South Australia.

Insurance Australia Group is NRMA’s reinsurer. This is the largest insurer in Australia and New Zealand, and backs other major brands like CGU, SGIO, SGIC, WFI and Swann Insurance.

While the NRMA has been lobbying on behalf of drivers and road users for positive change for over a century, not all of its roughly 2.8 million members are entirely satisfied by its current offerings. Its comprehensive car insurance policy has a relatively low rating of 1.7 out of 5 stars from more than 600 reviews on review site, Product Review. While reviews tend to skew negative on review sites, many of the reviewers cited poor customer service as a persistent theme.

The NRMA offers CTP insurance (in NSW and the ACT), third party property damage and third party fire and theft insurance, as well as a comprehensive policy which we are detailing here.

Its comprehensive option is the most fully-featured cover for drivers. It’s there to cover the financial fallout after road accidents, car theft and vandalism, as well as any damages you might cause to other people’s cars or property. There are numerous ways you can personalise this cover to suit your needs as a driver—find details below or more information in the NRMA car insurance product disclosure statement (PDS).

Break-ins, accidents, and after-accident care

NRMA covers a huge range of events which may damage your car including fires, storms, flooding, theft, vandalism and road accidents. There’s solid after-accident care including $800 for emergency repairs to ensure your car is safe to drive, reasonable towing costs and up to $1,500 for emergency accommodation and travel after an accident that occurs more than 100km from your home.

Items inside your car are protected against damage and theft, too. There’s $1,000 cover for personal items you keep in your car, $500 to insure each baby car seat and $1,500 to protect any trade tools you currently use for work. If your keys are stolen, NRMA will pay to replace these and the car’s locks for up to $1,000.

If your car is damaged or written off in an accident of theft, the NRMA will help you get back on the road with hire car cover (up to $100 a day plus $3,000 for hire car excess and bond). This is covered until your car is repaired, replaced or its value is paid out through your claim. Just remember, this doesn’t include running costs and isn’t offered if you were responsible for the damages (unless you have included this as an optional extra).

Will NRMA replace my car if it’s written off?

Yes, the NRMA comprehensive car insurance policy offers new car replacement if your wheels are written off in an insurable event. You’ll receive a comparably-priced new car of a similar make and model if the accident happens less than two years after you originally registered the car, if it weighs under 2.5 tonnes and was a new or dealer demonstrator vehicle when you bought it.

Can I choose my own repairer?

This isn’t included as standard with NRMA’s comprehensive cover, but it can be added as an optional extra for an additional fee. Being able to send your vehicle to your preferred mechanic after an accident might be a big plus if you know your sparky well or have a specialised vehicle (like a vintage or collectible car) that you’d like to be repaired and cared for in a certain way.

Is free roadside assistance included?

No, but NRMA roadside assistance can be purchased separately. It’s important to note that this is only available to NSW and ACT residents, but these policyholders will be covered when driving interstate. If you do breakdown beyond NSW or the ACT, roadside assistance will be delivered through the state or territory-affiliated motoring clubs and organisations. So, you may find that interstate services differ slightly.

If you’re comfortable making a car insurance claim online, you can do this with the NRMA in about ten minutes via their claims portal, which is accessible via your online NRMA account. Alternatively, call their 24/7 claims line on 1300 546 125 to lodge a new claim. This is also the number you should call to organise towing your car to a repairer if necessary.

Provide photos of the incident, repair quotes and other information to the NRMA when relevant. It’s important to gather the details of anyone involved in the accident and share these with the NRMA when you start your claim, too.

Once you’ve lodged your claim, it will be reviewed, other parties will be contacted and the NRMA will reach out to you with a verdict or for more information if necessary. You can monitor the progress of your claim via your account, or call the claims line from 8:30am–5pm, Monday to Friday for an update.

While the NRMA comprehensive policy covers a lot, there are certain features that you’ll need to opt-in for to access (these come with an additional premium). There are also some circumstances or actions that will not be covered or will void your right to make an insurance claim. Find all the details for these extras and exclusions below.

Extras

• Using your car as a ride-share driver. This isn’t listed as an extra, but according to NRMA’s website, you can be covered as long as you let your insurance provider know how you’re using the car for ride-sharing. The NRMA states that rideshare cover comes with a premium increase, and it will cover ‘occasional’ use for ride-share driving. So if you drive for companies like Uber or Didi full time, this may present a problem.
• At-fault hire car cover. While hire car cover is included as standard after an accident that isn’t your fault, this extra cover ensures you’ll receive back-up wheels even if you are responsible for the damages.
• Choice of repairer. This gives you the power to choose any licenced repair within or outside of the NRMA network to fix your car.
• No claims bonus protection. This will keep your no-claims discount intact if you make one at-fault claim. Just remember this is a one-off per policy period, and only available to customers who have accrued a 60% no claims bonus.
• Excess-free glass repairs. Repairing window or windscreen damages can often cost less than the excess you’d have to pay to access your insurance cover. Depending on the excess level you’ve chosen, it may be worth including this extra that lets you avoid paying an excess when you claim for glass damage only.
• Roadside assistance. NRMA roadside assistance is a completely separate product to your insurance cover. It’s an option for NSW and ACT members who want roadside assistance Australia-wide.

Exclusions

• Hire car running costs (meaning you’ll need to pay for petrol and tolls);
• General wear and tear;
• Any intentional or reckless acts;
• Unlicensed or suspended drivers;
• Drivers under the influence, or refusing drug or alcohol testing;
• If the driver leaves the scene of an accident without a lawful excuse;
• If the car is driven when it’s not in a safe condition; and
• Other exclusions as listed in the PDS.

The NRMA offers some great discount options to members. These include:

• A no claims discount up to 65% of your premium. You move up discount levels after each policy period in which you don’t make a claim.
• A dual loyalty and multi-policy discount that can climb from 5% to 25% of your premiums depending on how long you’ve been an NRMA customer and how many insurance policies you hold with the company. To earn that headline discount, you’d need to hold 10 different NRMA policies and be a customer for at least 25 years. Someone with just one policy could earn a 12.5% discount in that time.
• A buy online discount up to 10% of your first year’s premium for customers who live in South Australia, Western Australia or the Northern Territory.