Car insurance for backpackers

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9+

Excellent

These products offer the best value and outcomes considering various product features and price.

7+

Great

Competitive products within their group.

5+

Standard

But these products still offer reasonable value and have the basics sorted.

0+

Basic

Offering basic cover with limited features or higher pricing.

Car insurance for backpackers

If you're backpacking around Australia and will be buying or borrowing (not renting) a car to get around, then there's a few things you need to about car insurance and driving here legally.

• You may need an International Driving Permit (IDP) if your native language is not English.
• You're legally required to have compulsory third party (CTP) cover.
• Unlike other countries, in Australia you insure the car, not the person.
• Comprehensive insurance and third party insurance is optional (CTP is different to other third party insurance). However, to avoid hefty out of pocket costs in the event of an accident, you'll likely want to get one of these.

How do I get car insurance for a backpacker?

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. If you're worried that you won't be in one place long enough to have a main address, call the insurer and they'll let you know how to navigate that.

Driver's license requirements

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:

• Your overseas license must be current and valid. Any conditions that apply to your overseas license will also apply in Australia.
• You will need a certified English translation or an International Driving Permit (IDP) if your license is in a language other than English.
• New Zealand residents are treated as interstate drivers for licensing purposes. If you have registered your vehicle in a different state or if your visa status changes to permanent, you are subject to interstate driving rules.
• The interstate license rules for permanent visas apply when you are officially a resident of that state, regardless of whether you are in it at the time.
• If your overseas license expires during your visit, you should apply for a local license.
• 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.

Best car insurance for backpackers

Most backpackers plan on doing quite a bit of driving on their trip, so it's worth considering getting cover for the following:

• Roadside assistance: If your car broke down while driving across Australia and you'd have no friends or family here to help you then roadside assistance should be high on your list when looking for features to consider in a car insurance policy.
• Bad weather: Anyone who isn't from Australia is in for a shock when they see how quickly the weather can turn on its head. Having storm cover, hail damage, fire and flooding is great to have if you will depend on your car while travelling.
• Contents inside the car: Backpackers with cars usually keep most of their belongings inside their car when moving across the country. If you have any expensive items – phones, laptops, clothes, passport – getting cover for them might be a wise choice.
• Accidents: Comprehensive cover is the only policy that will actually protect your car in an accident. If your car is very cheap, this might not be a concern to you. However, even if it is, repairs could be expensive, which a comprehensive policy could help cover.
• Hitting an animal: It's actually very common for cars to hit kangaroos on Australia's more remote roads. This can do serious damage to your car, so it might be worth making sure it's covered in your policy.

Backpacking on a budget? Here's how to find a cheap car insurance policy

Our expert says

"There's a number of ways to reduce your car insurance premium so you can save your cash for making memories. 1. Increase your excess: The higher your excess, the lower your premium will be. 2. Restrict drivers: Only let drivers over the age of 25 behind the wheel. This will make your premium cheaper. 3. Look for sign up discounts: Most providers have a sign up discount for new customers — this can help you save hundreds"

Peta Taylor

Associate publisher

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Finder Score	Roadside Assistance	Accidental damage	Agreed or market value
Promoted Finder Score 9 Excellent Youi Comprehensive	Finder Score 9 Excellent			Agreed or Market	Summary: A great value policy with exceptional customer service. Youi won the 2024 Finder Award for Customer Satisfaction. It scored highly for features and benefits, customer service and reliability. It also automatically includes roadside assistance with comprehensive policies in its price - a feature that typically costs upwards of $90 per year.	Get Quote More info Compare product selection Compare	loading
Promoted Finder Score 8 Great ROLLiN' Comprehensive	Finder Score 8 Great			Agreed	Get 10% off the base premium for the first 2 consecutive monthly policies and up to a 15% potential monthly discount from your 3rd month for being a safer driver. Minimum premiums may apply. T&Cs apply.	Summary: One of the most cost-effective insurers for under 25s, according to Finder research, with no aged-based excess. Who it might be good for: Young drivers looking to keep costs down and anyone who’d like to get more flexibility from their car insurance.	Get Quote More info Compare product selection Compare	loading
Promoted Finder Score 9.9 Excellent Budget Direct Comprehensive	Finder Score 9.9 Excellent	Optional		Agreed or Market	Receive 15% off your first year's premium when you purchase cover online. T&Cs apply.	Summary: Budget Direct Comprehensive is highly commended as a feature-packed car insurance. It's cheaper than most, plus you can lower costs by adding age restrictions. Who it might be good for: Anyone who wants a good value policy.	Get Quote More info Compare product selection Compare	loading
Finder Score 8.1 Great Bingle Comprehensive Finder Award	Finder Score 8.1 Great			Market	Summary: Our data shows it’s the cheapest comprehensive policy. It just covers the basics such as damage to your car, theft and storms – it doesn’t go in for add-ons and extras. Who it might be good for: Those wanting a low-cost, no-frills policy.	Get Quote More info Compare product selection Compare	loading
Finder Score 9.9 Excellent Coles Comprehensive Insurance Finder Award	Finder Score 9.9 Excellent	Optional		Agreed or Market	Save 15% off your first year’s premium when you take out a new Coles Car Insurance policy online. T&Cs apply.	Summary: Coles Comprehensive Car Insurance includes the benefits you'd expect, plus features like grocery replacement (up to $200 if damaged or stolen. T&C's apply). Who it might be good for: Those who want great quality cover and more rewards with Flybuys.	Get Quote More info Compare product selection Compare	loading
Finder Score 8.9 Great Kogan Comprehensive	Finder Score 8.9 Great	Optional		Agreed or Market	Up to 10% off your first year's premium when you apply online and $10 monthly Kogan credit (valid on $100+ purchases) for active policyholders. Black Friday deal: Get 12 months Complimentary Roadside Assist. T&Cs apply.	Summary: Kogan comes with all the perks that most comprehensive car insurance policies include, but you’ll also be entitled to some benefits from its online store. This usually comes in the form of a gift voucher or discount if you buy online. Who it might be good for: Kogan shoppers and those after a good range of policy options.	Get Quote More info Compare product selection Compare	loading
Finder Score 7.6 Great QBE Comprehensive	Finder Score 7.6 Great			Agreed or Market	Save $75 when you purchase a new comprehensive policy online. T&Cs apply.	Who it might be good for: Those who want a trustworthy insurer and more cover than other brands, such as 3-year new car replacement (e.g. they'll give you money for a new car for up to 3 years if yours is written off).	Get Quote More info Compare product selection Compare	loading
Finder Score 9.9 Excellent Qantas Comprehensive	Finder Score 9.9 Excellent	Optional		Agreed or Market	Earn up to 40,000 Qantas Points with every car insurance policy. Ends 28 Jan 2026. Plus save 15% on your 1st year’s premium when you purchase online. T&Cs apply.	Summary: You need car insurance so why not get one that lets you earn Qantas Points? It's good value too (it's underwritten by the same insurer as Budget Direct). Who it might be good for: People who want more bang for their buck with Qantas Points.	Get Quote More info Compare product selection Compare	loading
Finder Score 8.5 Great Australian Seniors Comprehensive	Finder Score 8.5 Great	Optional		Agreed	Save 5% on your first year's car insurance premium by holding a valid Seniors Card. T&Cs apply.	Finder’s summary: Australian Seniors’ comprehensive policy includes complimentary hire car for a stolen car, up to $1,000 for a damaged trailer or caravan, up to $500 for emergency travel and accommodation cover. Who it might be good for: People over 50 years old looking for flexible cover options.	Get Quote More info Compare product selection Compare	loading
Finder Score 7.7 Great Real Comprehensive	Finder Score 7.7 Great	Optional		Agreed	Summary: Real Comprehensive Car Insurance provides similar coverage to other insurers for the important stuff like looking after your car if it's stolen or you crash. It's also one of the few insurers who offer a Pay As You Drive policy, so you might be able to save big if you don't drive much. Who it might be good for: Those that don't drive much can take advantage of its Pay As You Drive policy.	Get Quote More info Compare product selection Compare	loading

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FAQs

• Is it illegal not to have car insurance in Australia?

  It's illegal not to have compulsory third party (CTP) insurance. Comprehensive, third party fire and theft or third party property damage insurance is all optional. Only CTP is mandatory.

• Can a tourist drive a car in Australia?

  Yes, as long as you have a valid license. What a valid license looks like will vary between states in Australia so it's best to check the government website for each of the requirements.

• Which country's drivers license is valid in Australia?

  If your license is in English then it's typically valid. If it's not, you can get an international drivers permit.

Written by

Peta Taylor

Publisher of Insurance

Peta Taylor is a publisher at Finder, working across all of insurance. She's been analysing product disclosure statements and publishing articles for over 2 years. Peta is passionate about demystifying complex insurance products to help users make well educated decisions with confidence. Peta is part of Finder's insurance awards team and works alongside editorial and insights experts to bring users the best insurance products every year. See full bio