
Get exclusive money-saving offers and guides
Straight to your inbox
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
Unlike other countries, in Australia you insure the car, not the person. You are also required to have compulsory third party (CTP) insurance and you may need an International Driving Permit (IDP) if your native language is not English.
The most cost effective way to see Australia is is to grab yourself a cheap car and put on third party property car insurance. This type of insurance will cover you if you crash into someone else and usually only costs around $25-$35 a month.
In Australia, car insurance works slightly differently. Here, you insure a car, not a person. So if you are coming from overseas with friends and you buy a car for a road trip, you will only need to insure the car. This means when you go off exploring Australia, you and your friends are allowed to drive the car, so long as you have a license that's valid in Australia and the car is properly insured.
You legally need to have compulsory third party (CTP) insurance as a minimum. CTP protects you if you crash into another driver and they have to go to hospital for injuries; it covers their hospital expenses. However, you should consider getting more cover. There are 3 tiers of car insurance in Australia to choose from:
Finding cover for a backpacker is relatively straightforward. You'll need to make sure you have a main address you can put down, as all insurers require you to have one. This is mainly so that your insurer knows where your car is usually kept, helping them calculate your premium.
It's also a legal requirement throughout Australia to have compulsory third party (CTP) cover. CTP insurance is sometimes included as part of your car's registration, depending on the state you are registering it in. In New South Wales and Queensland for example, you'll need to purchase CTP cover separately.
How you get your mandatory CTP cover depends on where you register your vehicle.
In New South Wales and Queensland, you need to take out cover through an approved state insurer. There may be differences between the types of cover as well as the price.
In Victoria, South Australia, Western Australia, Tasmania, and the Northern Territory, compulsory third party insurance is included as part of the vehicle registration process, and your premiums are part of the fee. You do not need to compare cover or policies.
You must have a valid driver's license on you at all times while driving. Whether you can use an overseas driver's license depends on which state you're in and how long you'll be staying. In all cases, you must meet the following criteria:
While every effort has been taken to ensure the accuracy of this information, you should check for information specific to your situation and location at the relevant website.
Every backpacker has different travel plans when visiting Australia so there's no way of determining a policy that is best for everyone. However, most backpackers plan on doing quite a bit of driving on their trip, so it's worth considering getting cover for the following:
There are a few ways to find cheap car insurance that won't break the bank:
Fines cost us $500 million a year, but there's a hidden cost that's even higher.
Read more…Drivers don't just face extra fines. They're also at risk of increased insurance premiums and license suspensions.
Read more…A Budget Direct study reveals what makes drivers angry and shares tips on how to stay cool.
Read more…Today's best Finder Daily deals include: 35% off Dungeons & Dragons, 50% off New Balance shoes, Cheap Echo Show 5 smart home hubs.
The Kia Stinger 330S costs $9,800 less than the top of the line GT model. But should you buy it?
Upgrade your home storage with one of the best NAS devices available on store shelves here in Australia.
These are the 6 best booster seats you can buy right now in Australia.
Finder research shows 2.7 million Australians have a car loan. Find out how much Aussies are borrowing, and how this has changed over time.
For a limited time, you can score up to $165 off a range of breast pumps, car seats and food makers.
Here are some of the best electric cars in Australia in 2021.
The most expensive cities to die in throughout the country revealed in a new study by Finder, Australia’s most visited comparison site. Perth is Australia’s most expensive city to die in, with the average funeral costing $8,261. Brisbane is the cheapest city, with funerals costing $6,728.
There are 24.4 million super accounts in Australia from a total of 84 funds, with MySuper assets equalling $812 billion. Find out more in our report.
Extras cover is the number one drawcard for Australians who take out private health cover, new research from Finder, Australia’s most visited comparison site, reveals.