Do I need car insurance in Australia?

How we calculate Comprehensive Car Insurance Finder Scores

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What different scores mean

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.

Is car insurance compulsory in Australia?

Only CTP insurance is compulsory. In Australia, you must insure each registered vehicle with CTP insurance, sometimes known as Green slip insurance. CTP actually stands for compulsory third party insurance.

You buy your policy from one of a handful of insurers your state has selected to take part in its CTP scheme – all of these state-regulated policies cover you for the medical bills of anyone you injure in an accident. Some states will cover some of your medical bills, even when you're at fault.

In most states, your Green Slip automatically comes with your registration. But you can choose between private insurers if you're in NSW, SA, ACT or QLD.

Finder survey: How many Australians have car insurance?

How does car insurance work in Australia?

Once your car has compulsory third party insurance sorted, you can choose to add on other insurance for further protection. This is optional, yet recommended depending on the value of your car. There are three types of additional insurance to go along with your CTP. These are:

Third party property damage (TPPD)

This covers damage you cause to another's property, including cars, homes, land, pets and personal items. But it won't cover repair costs for your car. This level of coverage is a good option for those with less valuable cars.

Third party, fire and theft (TPFT)

This covers everything TPPD does plus fire and theft. It doesn't cover your car if you're involved in an accident or if it's damaged by any other type of natural disaster, besides fire. This level of coverage may be good for those in more dangerous LGAs or those who simply want coverage in the event of fire or theft.

Comprehensive

This covers you for everything third party property damage (TPPD) and third party fire and theft (TPFT) does, plus, many other ways your car can get damaged: storms, natural disasters, vandalism, uninsured drivers, hit-and-runs and at-fault accidents. The most notable difference between comprehensive and third party insurance is that comprehensive car insurance covers damage to your own car.

Additionally, there are specialist types of car insurance that you might need depending on your circumstances. Examples include multi-car insurance, which lets you insure all your cars together – and rideshare insurance, to cover you if you're an Uber or Ola driver, for example. There's also modified car insurance for those with mods that sit outside of regular insurance.

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• Comprehensive policies
• Third party property damage policies

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10 of 71 results

Finder Score	Roadside assistance	Accidental damage	Storm	Choice of repairer	Agreed or Market Value
Promoted Finder Score 9 Excellent Youi Comprehensive	Finder Score 9 Excellent				Optional	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			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 9.9 Excellent Coles Comprehensive Insurance Finder Award	Finder Score 9.9 Excellent	Optional			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 9.9 Excellent Qantas Comprehensive	Finder Score 9.9 Excellent	Optional			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 9.2 Excellent ING Comprehensive	Finder Score 9.2 Excellent	Optional			Optional	Agreed or Market	Save 15% on your first year’s premium when you buy a new ING comprehensive car insurance online. T&Cs apply.	Summary: A policy with high benefit limits included as standard with plenty of optional add-ons. Who it might be good for: Drivers who like the ability to tailor their cover with lots of optional extras like windscreen damage and roadside assistance.	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 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 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 8 Great Huddle Comprehensive	Finder Score 8 Great	Optional				Agreed or Market	Summary: Huddle's comprehensive policy will cover you if your vehicle is damaged or lost as a result of a collision, a natural event, a malicious act, theft or fire. It also includes up to $500 for essential repairs. Who it might be good for: Someone who drives less than 15,000 km a year can opt for Pay As You Drive cover.	Get Quote More info Compare product selection Compare	loading

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Why is additional insurance important?

CTP may be the only form of insurance that's compulsory, but that doesn't mean you should go without more cover.

If you want to stop yourself from potentially severe financial hardship, it may well makes sense to get extra cover. Here are 3 reasons why:

Damaging someone's property can be expensive

Causing an accident can be expensive. Even if you forget about the damages to your car, you'll still be responsible for damaging other people's cars plus any other property you can think of, like road signs, bus stops, homes, lawns, shopfronts and animals.

There's often no one else responsible when your car is damaged.

If replacing your car would hurt your wallet, consider these situations where CTP won't pay for your car: you cause the accident, an uninsured driver hits you, someone hits you and drives off, someone steals or vandalises your car or there's a natural disaster like a flood or hailstorm.

Your bank may require it

If you borrowed money for your car, your lender might insist that you take up additional cover to protect the loan.

"While budgets are tight, it can be tempting to drop down a cover level. But I look at it the other way round. Even optional covers can save you money in the long run as they can help you avoid out-of-pocket costs. Take roadside assistance. You can get a standalone policy for around $7 per month. And it could save you hundreds of bucks on the cost of private towing fees if you find yourself stranded at the side of the road following an accident."

James Martin

Journalist

Weighing up your car insurance options

The type of insurance that's best for you will depend on your personal circumstances. Below are some questions to ask yourself that can help determine what level of cover may be best for your car.

• Do you owe money on your car? If you're still paying for your car, there's a good chance your lender will require you to have comprehensive car insurance because that's the only level that fully covers your car. Even if not, you should strongly consider comprehensive cover so you don't need to take out a second loan to replace the vehicle.
• How much is your car worth? If replacing your car wouldn't break the bank, you can get away with third party property cover. It won't cover your car, but will help you avoid massive bills if you crash into someone else's.
• Do you drive often or rely on your car? If you're on the road a lot, comprehensive car insurance can swoop in to help if an accident leaves your car undriveable. For example, it can provide you with a hire car while yours is in the shop and put you up in a hotel if you're stranded far from home.
• Where do you live? If you live in an area that's prone to natural disasters or theft, you should get a level of insurance that will cover those specific risks. Third party, fire and theft will help out if you live in a bushfire-prone area. If you live in a flood zone or somewhere that experiences cyclones, you'll need comprehensive cover.

Frequently asked questions

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

  It is illegal to drive without CTP insurance, yes. That's the case in all states and territories of Australia.

  If you have an accident and you don't have CTP cover, then you could be personally liable for any injuries or death to others.

• What's the best car insurance?

  There's no single 'best' policy as everyone's needs are different. To help you find the best car insurance for your needs, you could start by considering what you value most in a policy — price, features, customer service — then look for a policy that prioritises these things.

To make sure you get accurate and helpful information, this guide has been edited by Gary Ross Hunter as part of our fact-checking process.

Written by

James Martin

Journalist

James Martin was the insurance editor at Finder. He has written on a range of insurance and finance topics for over 7 years. James often shares his insurance expertise as a media spokesperson and has appeared on Prime 7 News, Insurance News, 7NEWS and The Guardian. An experienced journalist, James' work has featured in publications including The Irish Times, Companies100 and In Business. He holds a Tier 1 General Insurance (General Advice) certification and a Tier 1 Generic Knowledge certification, both of which meet the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

James's expertise

James has written 184 Finder guides across topics including:

• Car, home, life, health, travel and pet insurance
• Managing the cost of living
• Money-saving tips