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!
{"menuItems":[{"label":"So, is car insurance compulsory in Australia?","anchorName":"#so-is-car-insurance-compulsory-in-australia"},{"label":"How does car insurance work in Australia?","anchorName":"#how-does-car-insurance-work-in-australia"},{"label":"Get car insurance with added peace of mind","anchorName":"#get-car-insurance-with-added-peace-of-mind"},{"label":"Why might I need any additional insurance in Australia?","anchorName":"#why-might-i-need-any-additional-insurance-in-australia"},{"label":"How to settle on the right car insurance","anchorName":"#how-to-settle-on-the-right-car-insurance"},{"label":"Do I need comprehensive car insurance on an old car?","anchorName":"#do-i-need-comprehensive-car-insurance-on-an-old-car"},{"label":"Frequently asked questions","anchorName":"#frequently-asked-questions"}]}
What you need to know
All drivers must have compulsory third party car insurance (CTP). It covers you only for costs linked to injuries and deaths from car accidents.
Even if you do not drive your car, and it is kept parked on a road or in a garage, you still need insurance.
The next step up from CTP is third party property insurance, which also protects you if you damage the vehicle or property of another person.
So, is car insurance compulsory in Australia?
In Australia, you must insure each registered vehicle with CTP insurance, sometimes known as Green slip 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 have to organise it on your own if you're in NSW, ACT or QLD.
How does car insurance work in Australia?
You can choose between three types of additional insurance to go along with your CTP. These are:
Third party property damage (TPPD)
This covers any 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.
Third party, fire and theft (TPFT)
This covers everything TPPD does plus two specific events that cause damage to your car: when it catches fire or when someone steals it. It doesn't cover your car when you cause a crash or when it's damaged by any other type of natural disaster, besides fire.
Comprehensive
This covers you for everything TPPD and TPFT does, plus, all other ways your car can get damaged: storms, natural disasters, vandalism, uninsured drivers, hit-and-runs and at-fault accidents.
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.
Why might I need any additional insurance in Australia?
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.
How to settle on the right car insurance
Everyone needs some form of additional insurance in case they damage someone's property, but only certain people will need more than that. It really depends on the individual, since not everyone has the same car or the same driving record.
Here are some questions you can ask yourself to determine which level of cover is right for you:
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, 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.
Put simply, comprehensive car insurance is your go-to policy to get peace of mind that you'll be protected against a wide range of risks on the road.
Do I need comprehensive car insurance on an old car?
Everyone should have some level of additional car insurance on top of their CTP, including those who drive old cars. An old car can cause just as much damage to a BMW as any other car on the road, maybe even more so, since older cars tend to be heavier.
That's why it's important to consider getting at least third party property protection – as a minimum.
You should also consider whether or not you'd be in the financial position to replace your car if it was damaged. If replacing your old car would be too much of a burden, getting third party, fire and theft or comprehensive cover will ease some of that worry.
Frequently asked questions
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.
As its name suggest, pay-as-you-drive car insurance is a type of cover where you only pay for the kilometres you drive. It can be a cost-effective option for those who drive infrequently, or only short distances, as our guide explains.
Yes, electric vehicle insurance can be more costly than a traditional car. That said, you can save money on your car rego if you buy an electric vehicle, while your duty costs could also be cheaper.
James Martin is a senior writer for Insurance at Finder. He has written on a range of finance and business topics for over six years and his work has been featured in publications including The Irish Times, Companies 100, In Business and Q Magazine (UK). As a trained journalist, he can drill into the finer details of financial products to help you save time and money. James is a committed sports fan, novel reader and he holds a Tier 1 General Insurance (General Advice) certification.
A Toyota LandCruiser car insurance policy is around $138.43 a month. Compare 5+ policies side-by-side to see if you can get better value for your money.
The average Toyota Granvia comprehensive insurance policy is $127.36 a month. Compare 5+ policies, discounts and get covered for a hire car, personal effects and more.
I am in QLD on WHV 417 and want to buy a car to travel around the country. If I buy a car i understand i must register it as the new owner – do you know how much that is? and then I must insure it with a green slip if I sort this in QLD am I then covered for insurance across all australia?
Depending on the vehicle number of cylinders, your vehicle registration in QLD may range from $350-$670. The rules of CTP insurance vary from state to state. For example, drivers in New South Wales, Queensland, South Australia and the Australian Capital Territory have the power to choose their CTP/Green Slip insurance provider. All vehicles in Australia must have CTP insurance before they can be registered and legally driven in any road in Australia. Hope this helps!
Thanks for reaching out! You may certainly insure a car you’re driving that’s not registered under your name. Non-owner car insurance allows you to drive someone else’s car and be protected.Typically this insurance only provides liability coverage, not optional coverage like damage to the car, rental reimbursement or medical expenses. Do your research by viewing this list of car insurance providers on our page and ask if they offer this type.
As a friendly reminder, carefully review the Product Disclosure Statement of the product before applying. You may also contact the insurance provider should you have any questions about their policy.
Hope this was helpful. Don’t hesitate to message us back if you have more questions.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We compare from a wide set of banks, insurers and product issuers. We value our editorial independence and follow editorial guidelines.
finder.com.au has access to track details from the product issuers listed on our sites. Although we provide information on the products offered by a wide range of issuers, we don't cover every available product or service.
Please note that the information published on our site should not be construed as personal advice and does not consider your personal needs and circumstances. While our site will provide you with factual information and general advice to help you make better decisions, it isn't a substitute for professional advice. You should consider whether the products or services featured on our site are appropriate for your needs. If you're unsure about anything, seek professional advice before you apply for any product or commit to any plan.
Products marked as 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money here.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labelling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan, we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
I am in QLD on WHV 417 and want to buy a car to travel around the country. If I buy a car i understand i must register it as the new owner – do you know how much that is? and then I must insure it with a green slip if I sort this in QLD am I then covered for insurance across all australia?
Hi Corrine,
Thank you for reaching out to finder.
Depending on the vehicle number of cylinders, your vehicle registration in QLD may range from $350-$670. The rules of CTP insurance vary from state to state. For example, drivers in New South Wales, Queensland, South Australia and the Australian Capital Territory have the power to choose their CTP/Green Slip insurance provider. All vehicles in Australia must have CTP insurance before they can be registered and legally driven in any road in Australia. Hope this helps!
Cheers,
Reggie
Can you insure the car you are driving if it is not registered in your name/
Hi Sue,
Thanks for reaching out! You may certainly insure a car you’re driving that’s not registered under your name. Non-owner car insurance allows you to drive someone else’s car and be protected.Typically this insurance only provides liability coverage, not optional coverage like damage to the car, rental reimbursement or medical expenses. Do your research by viewing this list of car insurance providers on our page and ask if they offer this type.
As a friendly reminder, carefully review the Product Disclosure Statement of the product before applying. You may also contact the insurance provider should you have any questions about their policy.
Hope this was helpful. Don’t hesitate to message us back if you have more questions.
Best,
Nikki