Best Car Insurance for Single Parents in Australia (2025)

For many single parents in Australia, managing household expenses while ensuring their family’s safety on the road can feel overwhelming. One area where you can save money without sacrificing peace of mind is car insurance.

But with so many options available, it can be confusing to figure out which policy works best for single parents juggling tight budgets and busy lives.

In this guide, we explain everything you need to know about finding the best car insurance for single parents in Australia (2025).
We’ll cover:

• Why single parents need the right car insurance

• The best insurers and policies for single parents

• How to save money while staying well-covered

• Real examples, common mistakes, and expert tips

By the end, you’ll know exactly what steps to take to get affordable and reliable car insurance tailored to your needs.

Why Single Parents in Australia Need Special Attention to Car Insurance

If you’re a single parent, your car is more than just transportation. It’s how you get to work, take your children to school, shop for groceries, and respond to emergencies.
Having reliable car insurance means:

• You avoid unexpected financial shocks if something happens to your car.

• You protect yourself from liability if you’re involved in an accident.

• You can access a courtesy car if yours is being repaired.

• You can cover essentials like child seats or prams damaged in an accident.

But as a single parent, you may also face specific challenges:

• Limited income and higher expenses.

• Less time to shop around or negotiate policies.

• Higher risk if you rely on your car every day.

This is why it’s essential to find an insurer that offers affordable rates, flexible payment options, and family-friendly benefits.

Types of Car Insurance Available to Single Parents in Australia

Before choosing a policy, it’s important to understand the types of car insurance available.

1. Compulsory Third Party (CTP)

• Mandatory in Australia.

• Covers injuries to other people if you cause an accident.

• Does not cover damage to vehicles or property.

2. Third Party Property Damage

• Covers damage you cause to other people’s cars or property.

• Does not cover damage to your own car.

3. Third Party, Fire & Theft

• Adds coverage if your car is stolen or damaged by fire.

• Still doesn’t cover accidental damage to your own car.

4. Comprehensive

• Covers your car, other cars, and property damage — no matter who’s at fault.

• Best choice for most single parents who rely heavily on their car.

Best Car Insurance Providers for Single Parents in Australia (2025)

We’ve researched and shortlisted insurers that offer excellent coverage, good customer service, and discounts or features that appeal to single parents.

1. NRMA Insurance

• Why it’s good for single parents: Offers flexible monthly payments and child seat replacement cover.

• Features:

  • Comprehensive and third-party options.

  • Free child seat replacement after an accident.

  • Strong roadside assistance program.

  • Discounts for multi-policy holders.

2. AAMI

• Why it’s good for single parents: Budget-friendly premiums and easy-to-manage policies.

• Features:

  • Online claims management.

  • New car replacement if your car is written off (within certain conditions).

  • Optional hire car cover after an accident.

3. Allianz

• Why it’s good for single parents: Competitive rates and clear policy terms.

• Features:

  • Covers personal belongings and baby items in the car.

  • Fast claims process.

  • Discounts for good driving records.

4. Budget Direct

• Why it’s good for single parents: Low premiums and award-winning customer service.

• Features:

  • Big discounts for buying online.

  • Pay-as-you-go options.

  • Optional hire car and roadside assistance.

5. RACV (Victoria)

• Why it’s good for single parents: Tailored for Victorians, with family-friendly benefits.

• Features:

  • Free child seat cover.

  • Discounts for seniors and low-kilometre drivers.

  • Member benefits for everyday shopping.

6. Youi

• Why it’s good for single parents: Highly personalised policies.

• Features:

  • You only pay for what you need.

  • Tailored risk assessment based on how and where you drive.

  • Flexible payment schedules.

Summary Table: Best Car Insurance for Single Parents in Australia (2025)

How to Save Money on Car Insurance as a Single Parent

Single parents often need to keep costs low without sacrificing coverage. Here are proven ways to save:

1. Compare Multiple Quotes

Don’t settle for the first offer. Use comparison sites or contact insurers directly to find the best deal.

2. Choose a Higher Excess

If you can afford a higher excess in case of a claim, your premium will usually be lower.

3. Drive Less

Some insurers offer discounts if you drive below a certain number of kilometres per year.

4. Bundle Policies

If you also have home or contents insurance, bundling with one insurer can lead to big discounts.

5. Keep a Clean Driving Record

The safer your driving history, the lower your premiums.

6. Take Advantage of Discounts

Look for family discounts, online-only deals, or membership perks.

Common Mistakes to Avoid

• Not reading the policy fine print.

• Forgetting to declare all drivers of the car.

• Over-insuring or under-insuring your car.

• Missing out on discounts by not asking.

• Choosing the cheapest policy without checking the coverage details.

Real-World Example

Case Study:
Sarah, a single mum in Sydney, was paying $1,800 per year for car insurance. After comparing quotes, she switched to Budget Direct for $1,150 per year, with the same coverage. She also added RAC roadside assistance for $120 — saving over $500 annually while improving her protection.

Additional Features Single Parents Should Look For

When evaluating policies, check if they include:

• Free child car seat replacement after a crash.

• Coverage for prams and baby items inside the car.

• Courtesy or hire car while yours is being repaired.

• 24/7 roadside assistance.

• Flexibility to pay monthly without extra fees.

Frequently Asked Questions (FAQ)

1. Do single parents pay more for car insurance?

Not necessarily. Your premium depends more on your car, driving history, and location than your marital status.

2. Which type of car insurance is best for single parents?

Comprehensive insurance is usually the safest choice, especially if you rely on your car every day.

3. Are there special discounts for single parents?

Some insurers offer family or multi-policy discounts that single parents can take advantage of.

4. What if I can’t afford comprehensive insurance?

Consider Third Party, Fire & Theft as a cheaper alternative, but remember it won’t cover your car’s own damage.

5. Does my child need to be listed as a driver?

If your child has a learner or provisional license and drives your car, they should be listed to avoid higher excess fees.

6. Can I switch insurers if I find a better deal?

Yes. You can switch any time, though there may be a small cancellation fee.

7. Does comprehensive insurance cover prams and child seats?

Many comprehensive policies in Australia include limited cover for baby items inside the car. Check your insurer’s limits.

8. Should I get roadside assistance?

Yes. It’s especially helpful for single parents who don’t have someone else to call in an emergency.

9. Does driving less help lower my premiums?

Yes. If you drive under a certain distance each year, you may qualify for a low‑kilometre discount.

10. Is monthly payment more expensive than annual?

Some insurers charge extra for monthly payments, but others don’t. Always ask.

Final Thoughts: Best Car Insurance for Single Parents in Australia (2025)

As a single parent in Australia, your car is a lifeline and the right insurance protects you and your family when you need it most.

By comparing policies, understanding your needs, and looking for family-friendly benefits, you can save money while staying fully covered.

What You Should Do Next:

• Get quotes from at least three insurers mentioned above.

• Look for family-specific benefits like child seat cover and flexible payments.

• Choose a policy that balances affordability and protection.

With the right car insurance, you can focus on what matters most — caring for your family — knowing you’re financially protected on the road.