Car Insurance for Backpackers
If you're a backpacker in Australia and wanting to drive, you'll need to insure your car. Here's what you need to know.
![Image: Supplied Car Insurance](https://www.finder.com.au/finder-au/wp-uploads/2020/01/Comprehensive_Car_Insurance_Supplied_1800x1000.jpg)
Unlike other countries, in Australia you insure the car, not the person. You are also legally required to have compulsory third party (CTP) insurance. 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. You may also need an International Driving Permit (IDP) if your native language is not English.
There are many cost effective ways to drive around Australia. For shorter trips, a rental car could be a good option. For longer stays, you may be more interested in buying a car and insurance. Depending on your needs, there are a range of car insurance options available from comprehensive to third party policies. You can read about the difference between each below.
This is the only level of car insurance that covers damage to your own car as well as other people's vehicles and property. Additionally, you'll be covered if your car is damaged by hail, fire or storm or if it's stolen or vandalised. It can also help pay for key replacements, a hire car if yours is stolen and more.
This covers costs if you damage someone else's vehicle or property and can pay to repair or replace your car if it's damaged by fire or stolen. However, it doesn't cover you for damage to your own car due to an accident, storm or flood.
This only covers you for costs if you damage someone else's vehicle or property. It won't cover repair costs for your car.
Often called Green Slip insurance, compulsory third party is mandatory for every registered driver in Australia. In many states, it's included in your car registration. It helps cover compensation costs, such as hospital expenses, if you kill or injure someone in a car accident. It won't cover your car or someone else's car.
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. Compare car insurance options.
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:
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hi, how can I find a car insurer that will cover me whilst on working holiday visa subclass 417?
Thank you :)
Hi Becky,
Once you know what car you’ll be driving and where you’ll be staying, you should be able to start getting quotes. If you’re unsure about how to answer any of the questions in the forms online, you can always give the insurer a call and they’ll be able to help you.
Good luck!
Peta