RAA Car Insurance Review

RAA, which is more than 100 years old, is located in South Australia and provides insurance and other services for drivers. So what are the pros and cons, is it worth it for those outside SA and how competitive are their premiums? Read on for my full RAA car insurance review..

The Good

  • Members of RAA can get discounts on their insurance (10% multi policy discount).
  • Competitive rates on premiums
  • It is easy to cancel your insurance if required and there is no cancellation fee
  • If the accident is not your fault, you will not have to pay an excess.
  • RAA provides a number of useful services for its members.
  • You can add a rental car as an optional extra to your comprehensive insurance
  • Canstar winner for most satisfied customers x4 years
  • Insurance cover starts immediately, with 21 days to pay
  • Option to pay annually or monthly, with no extra fee for monthly payments
  • 10% Discount for seniors
  • Benefits SA locals
  • Easy to navigate website

The Bad

  • RAA is located only in South Australia and there are no offices interstate.
  • Some reviews have suggested that customer service is not always as good and that it is sometimes difficult to get claims paid quickly.
  • Not all insurance policies come with roadside assistance
  • There may be cheaper car insurance companies out there

Verdict: Competitive car insurance rates for SA residents, and good member benefits for those in SA, but there may be cheaper car insurance around.

Introduction

For car owners in South Australia, it is worth checking out the car insurance that is provided by RAA. RAA provides both compulsory third party and comprehensive car insurance policy options. Some of the RAA insurance policies also include roadside assistance. RAA has more than 780,000 members and started in 1903.

CaptainFI is not a financial advisor and this article is not financial advice. This website is reader-supported, which means we may be paid when you visit links to partner or featured sites, or by advertising on the site. For more information please read my Privacy PolicyTerms of Use, and Financial Disclaimer.

What is RAA?

RAA1 is the Royal Automobile Association of South Australia. The organisation began in 1903 with just 15 drivers as members. Today it has more than 780,000 members. As well as providing roadside assistance, members can get insurance on all types of vehicles, homes, and travel. RAA has a driving school and gives members advice about their vehicles, maintenance, and buying and selling them.

Aside from car insurance, you can also apply for a personal loan through RAA, get installation of solar panels completed, get an International driver’s licence, and RAA even has a travel booking service!

raa car insurance logo

Where is RAA based?

RAA is based in South Australia with its head office in Adelaide. It also has shops in places as far away from Adelaide as Broken Hill, Port Lincoln, Mount Gambier, and Renmark.

What do RAA insure?

RAA provides insurance for all types of vehicles including scooters, mobility scooters, caravans, and boats. If you are a ride-share driver, then you can get insurance for that too.

There is insurance for homes as well. They have insurance coverage for owner occupiers as well as for landlords and the insurance for landlords includes short stay rentals, so even Airbnb owners can get insurance with RAA. Despite being more than 100 years old, RAA keeps up with modern trends.

When you book your trip through RAA, you can get travel insurance as well. You’ll be able to get emergency assistance almost anywhere in the world and medical cover.

Who underwrites RAA car insurance?

Unlike other companies, RAA does not have insurance that is underwritten by another company. When you read the PDS (Product Disclosure Statement) you will find that policies are underwritten by RAA Insurance Limited ABN 14 007 872 602 AFSL 232525 (RAA Insurance). It is good to know that unlike other insurance companies, they do not belong to a foreign insurance underwriter2. This is in contrast to its travel insurance which is underwritten by Tokio Marine and Nichida Fire Insurance. For more information about RAA car insurance, see this article3.

How much is RAA car insurance?

There are a number of factors that affect how much you will pay for your car insurance. Learn about the different types of insurance at Comprehensive vs third party car insurance | Finder4.

A comprehensive policy is obviously more expensive than third party cover. The most significant cost will be the level of cover that you choose and the make and model of the vehicle. You are likely to pay more if your car has been modified in some way.  The age and gender of the drivers can also have an effect. According to What Does Car Insurance Cost in Australia? | Canstar5, the average cost in South Australia will range from about $750 for a driver who is over 50 to $2,000 for a male who is under 25. This doesn’t take into account any other factors and it is definitely worth your while to shop around before you decide on insurance.

You can read more about Auto Car Insurance in my dedicated article HERE.

Other things that will probably be taken into account are how much you drive your car and where you drive it. If you have not made any insurance claims in recent years, you may be eligible for a no-claims bonus. They will also ask where you park your car. If your car is in a secure garage, that will help to reduce the cost.

raa car insurance cover

What does RAA car insurance cover?

RAA comprehensive car insurance provides cover for a wide range of situations:

  • They will repair or replace the windscreen or windows if there is an accident and there is unlimited repair or replacement of glass with no excess.
  • If your car is less than 8 years old and you have used RAA insurance since it was brand new, you will have lifetime vehicle replacement.
  • Theft or attempted theft is covered
  • Damage from natural disasters such as flood, hail, fire, and bushfire are all covered.
  • Of course, any accidents that occur anywhere in Australia are covered and that includes liability for cars, property, and injuring or killing someone.
  • If your car is less than 2 years old and it is undrivable, then you can replace the car with a brand new vehicle.
  • Malicious damage
  • Child restraints and other equipment for babies is covered in case of theft or damage.
  • You can get transport home and maybe the cost of a hotel if you are more than 750 km from home when your car is damaged or stolen. There is a maximum of $750, but it should be enough.
  • Trailers are covered if they are hooked up to the car at the time of the incident for which you are making a claim.
  • Theft of keys is also covered, but you will need a police report so you can’t make a claim if you lose your keys.
  • If your car is getting repaired, you can choose to add a replacement vehicle to your comprehensive cover as an optional extra
raa member benefits
RAA Member benefits

Does RAA car insurance only cover SA residents?

Drivers are covered across the country, but all of the offices are in South Australia, so it may not be convenient for interstate customers.

How do I make a car insurance claim through RAA?

It is easy to make an insurance claim through RAA since it is possible to make a claim online or by phone, saving you a trip to an RAA office. This will be particularly helpful if you are out of the state when you need to make a claim. Of course, you will need to give RAA a number of details including your car rego number, and details of the reason for the claim. If you have details of anyone else who is involved including witnesses, that would be useful. If you have made a police report, then you should give RAA the police report number. Provided you have all of the appropriate details on hand when you make the claim, it shouldn’t take very long.

raa car insurance
There are a number of factors that affect how much you will pay for your car insurance.

Advantages of using RAA Car insurance

  • Members of RAA can get discounts on their insurance (10% multi policy discount). If they get their home insurance through RAA as well, they might find that it gives significant savings.
  • Competitive rates on premiums
  • It is easy to cancel your insurance if required and there is no cancellation fee
  • If the accident is not your fault, you will not have to pay an excess.
  • RAA provides a number of useful services for its members.
  • You can add a rental car as an optional extra to your comprehensive insurance
  • Canstar winner for most satisfied customers x4 years
  • Insurance cover starts immediately, with 21 days to pay
  • Option to pay annually or monthly, with no extra fee for monthly payments
  • 10% Discount for seniors
  • Benefits SA locals – RAA representatives are SA based, and committed to ‘doing more’ for SA residents.
  • Easy to navigate website
raa car insurance canstar winner

Disadvantages of using RAA car insurance

  • RAA is located only in South Australia and there are no offices interstate. This could be an issue if you are out of state when you need to make a claim. However, you can make claims online, so it’s not impossible.
  • Some reviews have suggested that customer service is not always as good and that it is sometimes difficult to get claims paid in a timely manner.
  • Not all insurance policies come with roadside assistance
  • There may be cheaper car insurance companies out there – I have mine with Budget Direct

Does Captain Fi have car insurance through RAA?

My first car experience with the RAA insurer was when I got my license, fresh-faced and excited at 16 years old, not knowing much about cars and needing a roadside assist service. I signed up to RAA, with my girlfriend at the time, and we also got third-party insurance on her “classic” car (a very very old Holden). When I finished high school and went on to university and got my own car, I also took out RAA third-party fire and theft insurance. Comprehensive was just out of my budget at the time. At that time, it was competitive in price and I valued the roadside assistance that came with the automotive club. However as time went on, I found I could get better premiums elsewhere, so I ended up switching to Budget Direct.

“RAA’s been around for more than 116 years, and we take pride in providing quality motor, home and travel services to our members in South Australia and Broken Hill. We’re also committed to delivering educational services for the next generation of drivers, as well as advocating on behalf of our members on matters of road safety, mobility, and fuel pricing.”

www.raa.com.au/about-raa1

FAQs about RAA car insurance:

Is hail damage covered by RAA insurance?

Hail damage is covered by RAA insurance.

Does RAA car insurance include roadside assist?

Not all of the RAA insurance policies include roadside assistance. You will need to check where it is included.

Is it easy to cancel RAA car insurance?

According to the website, it is quite easy to cancel your insurance, either online, in person, or by phone. There is no cancellation fee, but you may not get all your money back. Read more about insurance cancellations at  How to cancel your car insurance quickly | Finder6. RAA will stop payment before the next month is due, but you won’t get a refund for part of the month.

Is RAA car insurance trustworthy?

With more than three quarters of a million members, RAA must be trustworthy, especially since the organisation was formed nearly 120 years ago. In fact, last year RAA won an award for most satisfied customers for South Australia. Despite this, RAA does have a lot of mixed reviews. While some people are impressed, others have had issues with wait times and customer service. You can read reviews here RAA Car Insurance | ProductReview.com.au7.  

The most important thing for you to do when you get insurance is to read their Product Disclosure Statement very carefully. You can read a copy of it here8.

You can listen to my podcast with Katherine HERE which covers different types of insurance too.

Conclusion

South Australian drivers should definitely consider RAA for their car insurance. Because the service is online, drivers can make insurance claims from anywhere in Australia. Many South Australians are already members and RAA insurance is good value for members who take out multiple policies.

RAA car insurance gets good reviews in South Australia and is competitively priced. It is important to shop around though! RAA is definitely one of the insurance providers I have used and been satisfied with, and I believe is a strong competitor in the car insurance space, but make sure you call around, compare prices and policies, ask for better deals!, and do what’s right for your own situation. You can read about how to save more money on cars in my article HERE.

CaptainFI is not a financial advisor and this article is not financial advice. This website is reader-supported, which means we may be paid when you visit links to partner or featured sites, or by advertising on the site. For more information please read my Privacy PolicyTerms of Use, and Financial Disclaimer.

Reference List:

  1. RAA. Accessed online at  https://www.raa.com.au/ on 2 Mar, 2023.
  2. ‘Insurance Underwriter: Definition, What Underwriters Do’.  Caroline Banton. Updated 28 Oct, 2021. Accessed online at https://www.investopedia.com/terms/i/insurance-underwriter.asp on 2 Mar, 2023.
  3. ‘RAA Car Insurance’. Mozo. Accessed online at https://mozo.com.au/insurance/car-insurance/raa on 2 Mar, 2023.
  4. ‘Comprehensive vs Third Party Insurance’. Andrew Munro. Updated 28 June, 2021. Accessed online at https://www.finder.com.au/car-insurance/comprehensive-vs-third-party on 2 Mar, 2023.
  5. ‘How Much Does Car Insurance Cost?’. Sean Callery. 17 Aug, 2022. Accessed online at https://www.canstar.com.au/car-insurance/what-does-car-insurance-cost/ on 2 Mar, 2023.
  6. ‘How to Cancel Your Car Insurance’. Alexandra Koster. 16 Apr, 2021. Accessed online at https://www.finder.com.au/car-insurance-cancel on 2 Mar, 2023.
  7. ‘RAA Car Insurance’. Accessed online at https://www.productreview.com.au/listings/raa-car-insurance on 2 Mar, 2023.
  8. ‘RAA Comprehensive Car Insurance Product Disclosure Statement (PDS)’. Accessed online athttps://www.raa.com.au/help-centre/insurance-support/pds-and-fact-sheets/comprehensive-car-insurance-product-disclosure-statement on 2 Mar, 2023.
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