Are vinyl wraps for cars covered by insurance?

Thinking of vinyl wrapping your car but unsure about whether insurance covers wrapped cars? At Australia Post, you can insure your vinyl wrapped car, provided the modification meets state and territory registration requirements. The vinyl wrapping will be replaced if subject to accidental damage when covered by our comprehensive car insurance policy.

What is vinyl car wrapping? 

A vinyl car wrap is a vinyl film applied to either all or a section of a car's exterior. This vehicle wrap is made from polyvinyl chloride, also known as PVC. As it’s an aftermarket process, car wrapping is classed as a car modification.

Why get a vinyl car wrap done?

People choose to get vinyl car wraps done to change the colour or texture of their vehicle. You can also use vinyl wrapping to place logos and designs onto a car. You may choose to get a vinyl car wrap completed if you’ve found your dream car but wish to change its colour. Another reason you may choose to get a vinyl wrap is to change from a gloss finish to a matte finish. Applying a company logo or design to a car could be another reason to choose vinyl car wrapping.  

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Is car wrapping legal?

Yes, as long as the process is completed by a certified car wrap applier and complies with your state or territory's laws and requirements. Before beginning a car wrapping job, do thorough research to make sure any modifications you make are legal. Some states and territories may not allow certain types of car wrapping, such as colour-changing or reflective chrome wraps, so it’s important to check your relevant laws and requirements before committing to wrapping your car.

What is covered?

If an at-fault party causes damage to your car, your insurer may only cover the cost to repair the section of the car that has received damage. This means, if your car has a vinyl wrap, your insurer may only cover the cost to re-wrap the section that has been damaged rather than re-wrapping the entire vehicle.

Your insurer and modifications

While making legal modifications to your car should not void its ability to be insured, you must still tell your insurer if you make a modification (or purchase a car with known modifications). You should always inform your insurer of any modifications or other changes made to your car as soon as reasonably possible. This includes any colour or texture changes that have been made, plus a variety of other modifications, including:

  • CD stackers
  • Driving lights
  • Sunroofs
  • Towbars
  • Roof racks
  • Reversing cameras
  • Alloy wheels
  • Bicycle racks
  • Bull bars
  • Chrome exhaust systems
  • Leather seats

Remember to keep a copy of your receipt for your vinyl wrapping to confirm the value and date of the modification.

Australia Post has Comprehensive Car Insurance options for vinyl wrapped cars, provided they meet the legal requirements for their state or territory. With our comprehensive car insurance, you can also select optional extras to suit your needs. These extras include accident hire car, choice of repairer, reduced window glass excess, and no claim discount protection.  


The content of this article is provided for general information purposes only and is not legal advice. Specialist legal advice should be sought about your specific circumstances.

Australia Post home and motor insurance is issued and underwritten by QBE Insurance (Australia) Limited (ABN 78 003 191 035, AFSL 239545) (QBE). Australian Postal Corporation (ABN 28 864 970 579, AR No: 338646) is an authorised representative of Australia Post Services Pty Limited (ABN 67 002 599 340, AFSL 457551) which is acting (under its own AFSL) on behalf of QBE. Any advice provided is general only and has been prepared without taking into account your objectives, financial situation or needs and may not be right for you. To decide if this product is right for you, please read the relevant Combined Financial Services Guide and Product Disclosure Statement, and Target Market Determination. Any reference to value and competitiveness refers to an average market segment and may not include your specific circumstances.