What is CTP insurance and how does it work?

Compulsory Third Party (CTP) insurance, also known as a Green Slip in NSW, covers personal injury caused by your vehicle. It is mandatory in every state and territory and is typically purchased when you register your vehicle. Each state has its own CTP scheme: NSW uses private insurers (Green Slips), Victoria uses the TAC, Queensland has a CTP portal, and other states have their own arrangements.

What is the difference between CTP and comprehensive insurance?

CTP (Compulsory Third Party) insurance is mandatory and only covers personal injury to other people caused by your vehicle. It does not cover damage to any vehicle or property. Comprehensive insurance is optional and covers damage to your vehicle, other people's vehicles, and property. You need both: CTP for the legal requirement, and comprehensive (or another voluntary cover) for property and vehicle damage.

Updated April 2026

Compare Car Insurance in Australia

Q: Is car insurance compulsory in Australia?

Compulsory Third Party (CTP) insurance is mandatory in all Australian states and territories. CTP covers injuries to other people in a car accident. However, comprehensive, third party fire and theft, and third party property damage insurance are all optional. CTP does not cover damage to vehicles or property.

Q: What types of car insurance are available in Australia?

There are four main types: CTP (compulsory, covers personal injury, purchased through state schemes), Comprehensive (covers your car and others' property), Third Party Fire & Theft (covers others' property plus fire/theft of your car), and Third Party Property Only (only covers damage to others' property).

Q: How much does car insurance cost in Australia?

Comprehensive insurance averages $1,200-$2,000/year for a standard driver aged 30-50. Young drivers under 25 can pay $2,500-$5,000+. Third Party Fire & Theft averages $500-$800/year, and Third Party Property Only $300-$500/year. CTP varies by state, typically $300-$700/year.

Q: What is the difference between agreed value and market value?

Agreed value is a fixed amount you and the insurer set when you take out the policy - this is paid if the car is written off. Market value means the insurer pays what the car is worth at claim time, which may be less due to depreciation. You can check your car's estimated value using RedBook.

Q: What is a no-claims discount (NCD)?

A discount on your premium for each year you don't make an at-fault claim. Most Australian insurers offer up to 65% discount after 5+ claim-free years. Some providers offer NCD protection so one claim doesn't reset your discount. The no-claims discount is one of the most significant ways to reduce your premium over time.

Q: What if the other driver is uninsured?

If you have comprehensive cover, your insurer will cover your vehicle repair or replacement and may pursue the uninsured driver to recover costs. If you only have third-party cover, you'll need to pursue the uninsured driver yourself through the relevant state tribunal - NCAT in NSW, VCAT in Victoria, QCAT in Queensland, or the equivalent in your state.

Q: Does car insurance cover natural disasters in Australia?

Most comprehensive policies cover natural disaster damage including hail, storm, and bushfire. Flood cover is sometimes excluded or optional - always check your Product Disclosure Statement (PDS). Hail damage is the most common comprehensive claim in Australia. There is no EQC equivalent for vehicles; cover comes entirely from your private insurer. Some policies have a separate, higher excess for natural disaster or flood claims.

Q: Am I covered if someone else drives my car?

It depends on your policy. Some policies cover any authorised driver, while others only cover named drivers. Unnamed or young drivers (under 25) may incur a higher excess, sometimes an additional $500-$2,000. Restricting to named drivers can lower your premium.

Q: Should I insure an old car comprehensively?

A common rule of thumb: if your annual comprehensive premium is more than 10% of the car's value, consider stepping down to Third Party Fire & Theft or Third Party Property Only. For a car worth $5,000 with an $800 comprehensive premium, TPFT at around $500 may make more financial sense.

Compare estimates from 10+ Australian car insurance providers side-by-side. Find the right cover at the right price: comprehensive, third party fire and theft, or third party property. 100% free.

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Last reviewed: 7 April 2026

AAMI

★ ★ ★ ★ ★ 4.2 / 5

AAMI is one of Australia's most recognised car insurance brands, owned by IAG. Known for straightforward policies, competitive pricing across comprehensive, third party fire and theft, and third party property cover - click below to see what they can offer you.

Get Quote Full Review

Also compare

Allianz Budget Direct GIO NRMA Suncorp Youi QBE RACQ RACV RAC

$1,200-$2,000

Avg. comprehensive premium/yr

CTP Mandatory

CTP is compulsory in all states

Up to 65%

No-claims discount savings

~5%

Drivers without comprehensive cover

What is Car Insurance?

A quick overview of how car insurance works in Australia and why it matters for every driver.

Car insurance in Australia falls into two broad categories: compulsory and voluntary. Compulsory Third Party (CTP) insurance is mandatory in every state and territory and covers personal injury to other people caused by your vehicle. It is typically purchased as part of your vehicle registration. Beyond CTP, voluntary car insurance covers damage to vehicles and property.

Voluntary car insurance is a contract between you and an insurance provider. You pay a premium (monthly or annually), and in return the insurer covers the cost of damage to your vehicle, other people's property, or both - depending on the level of cover you choose. While not legally required, voluntary car insurance is held by the vast majority of Australian drivers. Only around 5% of registered vehicles lack comprehensive cover.

With approximately 20 million registered vehicles in Australia and an average car value of around $35,000, the financial risk of driving without voluntary cover is substantial. If you cause an accident without insurance, you are personally liable for the cost of repairing or replacing the other driver's vehicle and any other property damage. Claims can easily reach tens of thousands of dollars.

Key point: CTP covers personal injury only. Even the most basic Third Party Property Only policy (from around $300/year) protects you from the financial risk of damaging someone else's vehicle or property. For a few dollars a week, it removes the risk of a bill that could be $10,000 - $50,000+.

When you take out a comprehensive policy, you'll also need to choose between agreed value and market value. Agreed value locks in a payout amount when you start the policy, so you know exactly what you'll receive if the car is written off. Market value means the insurer pays what the car is worth at claim time, which may be lower due to depreciation. You can check current values using RedBook. Both have trade-offs - agreed value gives certainty but costs slightly more in premiums.

For a detailed breakdown of what each type covers and costs, see the sections below. You can also check ASIC's MoneySmart car insurance guide for general information about car insurance in Australia.

Types of Car Insurance in Australia

There are four types of car insurance available in Australia. CTP is compulsory; the other three are voluntary.

Third Party Property Only

From ~$300-$500/yr

The most basic voluntary cover. Only pays for damage you cause to other people's vehicles or property. Your car is not covered at all.

✓ Third-party property damage
✗ Your vehicle - accidents
✗ Your vehicle - theft
✗ Your vehicle - fire
✗ Natural disaster damage
✗ Windscreen / glass
✓ Cheapest voluntary option

Third Party, Fire & Theft

From ~$500-$800/yr

Mid-tier cover. Covers damage to others' property, plus your car if it's stolen or damaged by fire. A popular choice for older or lower-value vehicles.

✓ Third-party property damage
✗ Your vehicle - accidents
✓ Your vehicle - theft
✓ Your vehicle - fire
✗ Natural disaster damage
✗ Windscreen / glass
✓ Good for lower-value cars

Comprehensive

From ~$1,200-$2,000/yr

Full protection. Covers damage to your car and others' property from accidents, theft, fire, weather, vandalism, hail, and bushfire.

✓ Third-party property damage
✓ Your vehicle - accidents
✓ Your vehicle - theft
✓ Your vehicle - fire
✓ Natural disaster damage
✓ Windscreen / glass
✓ Most complete protection

CTP (Compulsory Third Party) Insurance

In addition to the voluntary cover types above, every registered vehicle in Australia must have CTP insurance. CTP covers personal injury to other road users caused by your vehicle. It does not cover damage to vehicles or property. CTP is state-based: in NSW it's called a Green Slip, in Victoria it's managed by the TAC, and in Queensland you purchase it through the CTP portal. CTP typically costs $300-$700/year depending on your state and vehicle type.

Top Australian Car Insurance Providers

An in-depth look at Australia's most popular car insurers.

AAMI

★★★★★

One of Australia's most recognised insurance brands, owned by IAG. AAMI offers comprehensive, third party fire and theft, and third party property cover with competitive pricing and straightforward online quotes.

Roadside assist included

Agreed value available

Lifetime repair guarantee

Windscreen & glass cover

Multi-policy discounts

New car replacement (if <2yrs)

Get Quote Read Full Review

Allianz

★★★★★

A global insurance giant with a strong Australian presence. Allianz offers comprehensive car insurance with agreed value, choice of repairer, and cover for a wide range of events including hail and flood.

Agreed value cover

Choice of repairer

No-claims discount protection

Hire car after theft

New car replacement

Emergency accommodation

Get Quote Read Full Review

Budget Direct

★★★★★

An online-only insurer known for competitive pricing. Budget Direct has won multiple Canstar awards for outstanding value in car insurance and offers a no-frills, straightforward approach to cover.

Award-winning value

Online-only pricing

Agreed or market value

Windscreen cover included

Hire car option

Roadside assist add-on

Get Quote Read Full Review

GIO

★★★★★

A Suncorp-owned insurer with strong roots in New South Wales. GIO offers comprehensive, TPFT, and third party property cover with features including lifetime repair guarantee and emergency accommodation.

Lifetime repair guarantee

Agreed value option

Emergency accommodation

New car replacement

Windscreen cover

Multi-policy discounts

Get Quote Read Full Review

NRMA Insurance

★★★★★

An IAG-owned insurer operating in NSW, ACT, Queensland, and Tasmania. NRMA Insurance is one of Australia's most trusted brands, offering comprehensive cover with roadside assistance and agreed value options.

Roadside assist included

Agreed value available

Lifetime repair guarantee

Hire car after accident

Multi-policy discounts

NCD protection option

Get Quote Read Full Review

Suncorp

★★★★★

A major Queensland-based insurer offering a comprehensive range of car insurance products. Suncorp provides agreed value, lifetime repair guarantee, and emergency cover across all states.

Agreed value available

Lifetime repair guarantee

Emergency travel costs

Hire car option

Multi-policy discounts

Windscreen cover

Get Quote Read Full Review

Youi

★★★★★

A customisable insurer where you pay for what you need. Youi tailors policies based on your individual circumstances, which can result in lower premiums if you have a low-risk profile.

Customisable cover

Pay for what you need

Agreed value option

Choice of repairer

Hire car option

Multi-vehicle discounts

Get Quote Read Full Review

QBE Insurance

★★★★★

One of Australia's largest global insurers. QBE distributes car insurance primarily through brokers and partners, offering strong comprehensive cover for both personal and commercial vehicles.

Broker-distributed

Agreed value available

Lifetime repair guarantee

Emergency travel costs

Personal & commercial

Choice of repairer

Get Quote Read Full Review

RACQ Insurance

★★★★★

Queensland's member-based motoring club insurer. RACQ offers competitive rates for members with comprehensive, TPFT, and third party property cover, along with roadside assistance and multi-policy savings.

Member discounts

Roadside assist included

Agreed value option

Lifetime repair guarantee

Multi-policy discounts

Windscreen cover

Get Quote Read Full Review

RACV Insurance

★★★★★

Victoria's member-based motoring club insurer. RACV provides a comprehensive range of car insurance products with competitive rates for members, along with roadside assistance and strong claims support.

Member discounts

Roadside assist included

Agreed value available

Lifetime repair guarantee

Multi-policy discounts

Emergency travel cover

Get Quote Read Full Review

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How to Choose the Right Car Insurance

The right policy depends on your car, your budget, and how much risk you're comfortable carrying yourself.

Newer or High-Value Car

Comprehensive cover is typically the most suitable option
Consider agreed value so you know the payout amount upfront - check RedBook for current valuations
Check if your insurer offers new-for-old replacement on near-new vehicles (typically under 2 years)
If you're still paying finance, your lender will almost certainly require comprehensive cover

Older or Lower-Value Car

If comprehensive premiums exceed 10% of the car's value, TPFT may be more practical
Third Party Fire & Theft protects against theft and fire while covering you for damage to others
Market value is often adequate since agreed value offers less benefit on cheaper cars
Consider setting aside a savings buffer for repairs instead

Tight Budget

Third Party Property Only is the minimum voluntary cover worth having - it covers damage you cause to others
A higher excess lowers premiums but means more out of pocket at claim time
Pay annually if possible - monthly instalments include fees that add up
Ask about multi-policy discounts if you also have home or contents insurance

Comparison Checklist: What to Look at When Comparing

Premium cost - get estimates from at least 3-4 providers. Prices can vary by 30% or more for identical cover.
Excess amount - the standard excess ($500-$800) and any age-related, voluntary, or natural disaster excess that may apply on top.
Agreed vs market value - if your car is written off, how much will you actually receive? MoneySmart has a useful comparison guide.
What's excluded - check the Product Disclosure Statement (PDS) for exclusions. Common ones include wear and tear, mechanical breakdown, and driving under the influence.
Flood cover - not all policies automatically include flood cover. Check the PDS carefully, especially if you live in a flood-prone area.
No-claims discount - does the insurer offer NCD protection? Can you transfer your existing NCD from another provider?
Extras and add-ons - hire car cover, roadside assist, windscreen cover with no excess, keys and locks replacement.

Australian Car Insurance Providers Compared

A side-by-side comparison of major car insurance providers in Australia.

Provider	Cover Types	Online Quotes	Best For
AAMI	Comp, TPFT, TPP	✓	All-rounder
Allianz	Comp, TPFT, TPP	✓	Comprehensive options
Budget Direct	Comp, TPFT, TPP	✓	Budget / value
GIO	Comp, TPFT, TPP	✓	NSW focused
NRMA Insurance	Comp, TPFT, TPP	✓	Trusted brand
Suncorp	Comp, TPFT, TPP	✓	QLD based
Youi	Comp, TPFT, TPP	✓	Customisable
QBE	Comp, TPFT	Broker / partners	Via broker
RACQ	Comp, TPFT, TPP	✓	QLD members
RACV	Comp, TPFT, TPP	✓	VIC members

Comp = Comprehensive | TPFT = Third Party, Fire & Theft | TPP = Third Party Property Only

Disclaimer: Features and cover options may change. Always verify details directly with your insurer before purchasing. We do our best to keep all data up to date and accurate. If you've noticed something incorrect, please let us know.

What Does Car Insurance Cover?

A detailed breakdown of what's typically included in Australian car insurance policies.

Feature	Comprehensive	TP Fire & Theft	Third Party Property
Accidental damage to your car	✓ Covered	✗	✗
Theft or attempted theft	✓ Covered	✓ Covered	✗
Fire damage	✓ Covered	✓ Covered	✗
Third-party property damage	✓ Up to $20M	✓ Up to $20M	✓ Up to $20M
Hail damage	✓ Covered	✗	✗
Storm damage	✓ Covered	✗	✗
Flood damage	✓ Check PDS*	✗	✗
Bushfire damage	✓ Covered	✗	✗
Windscreen / glass	✓ Covered	✗	✗
Vandalism / malicious damage	✓ Covered	✗	✗
Towing costs	✓ Covered	Varies	✗
Emergency travel / accommodation	✓ $1K-$3K limit	✗	✗
Hire car while yours is repaired	Optional add-on	✗	✗
New vehicle replacement (if near-new)	Some providers	✗	✗
Keys & locks replacement	Some providers	✗	✗
Trailer cover (while attached)	Some providers	✗	✗

*Flood cover is sometimes excluded or optional in comprehensive policies. Always check your PDS, especially if you live in a flood-prone area.

Agreed Value vs. Market Value

Agreed value: you and the insurer set a fixed payout amount when you take out the policy. This is the amount you receive if the car is written off. Premiums are slightly higher, but you know exactly what you'll get. Market value: the insurer pays what the car is worth at the time of the claim, based on market conditions and tools like RedBook. This may be less than expected if your car has depreciated. Many drivers choose agreed value for the certainty it provides, despite the small premium increase.

Common Car Insurance Exclusions

Understanding what is not covered is just as important as knowing what is. These are the most common exclusions across Australian policies.

Driving Under the Influence

If you're involved in an accident while over the legal alcohol or drug limit, your claim will almost certainly be declined. This applies to all policy types and is a standard exclusion across every Australian insurer.

Mechanical & Electrical Breakdown

Car insurance covers sudden, unexpected events - not mechanical failure, wear and tear, or gradual deterioration. If your engine fails or your transmission breaks, that's a repair bill, not an insurance claim. Some manufacturers and dealerships offer separate extended warranty or breakdown cover for this.

Racing & Off-Road Use

Using your car for racing, rallying, speed testing, or on a track is excluded. Some policies also exclude off-road use or driving on beaches unless specifically covered. Check your PDS for the exact wording.

Unlicensed or Unregistered

Driving without a valid licence, with an expired licence, or with an unregistered vehicle can void your cover. Make sure your registration is always current.

Personal Belongings

Items stolen from your car (laptops, phones, bags) are generally not covered by car insurance. These typically fall under your contents insurance policy. Some comprehensive policies include limited cover ($200 - $500) but most do not.

Using Your Car for Business

If you use your personal car for commercial purposes (courier driving, ride-sharing, goods delivery) and your policy only covers private use, claims may be declined. Let your insurer know if you drive for Uber, deliver for apps, or use your vehicle for work beyond normal commuting.

Pre-existing Damage

Damage that existed before you took out the policy is not covered. Some insurers inspect vehicles (or ask for photos) when you first sign up. Be honest about existing dents, scratches, or mechanical issues.

Flood (Some Policies)

While most comprehensive policies cover hail, storm, and bushfire damage, flood cover is sometimes excluded or optional. After severe flooding events in NSW and Queensland in recent years, some policies added specific flood exclusions or higher excess amounts. Always check the flood cover section of your PDS carefully, particularly if you live in a flood-prone area. The Insurance Council of Australia provides guidance on understanding your cover.

Always read the Product Disclosure Statement (PDS) for the full list of exclusions specific to your policy. You can usually find this on the insurer's website or request a copy before you buy.

What Affects Your Car Insurance Premium?

Understanding these factors can help you find a better deal.

🚗

Vehicle Make & Model

Some cars cost more to repair or are stolen more often. Luxury and European cars generally attract higher premiums due to parts costs and repair complexity.

💰

Vehicle Value

Higher-value vehicles cost more to insure. The average Australian car is worth around $35,000. Consider market value vs. agreed value when setting your sum insured.

👤

Driver Age & Experience

Under-25 drivers pay significantly more. Years on a full licence, driving history, and demerit points all factor in. Drivers aged 30-50 typically get the best rates.

📍

Location & Postcode

Western Sydney, parts of Melbourne, and Southeast Queensland tend to be more expensive due to higher theft and accident rates. Bushfire zones also affect premiums.

🏆

No-Claims Discount

Up to 65% discount for 5+ claim-free years. The single biggest controllable factor in your premium. Some insurers offer NCD protection for a small additional cost.

🔧

Excess Amount

Choosing a higher voluntary excess lowers your premium. Standard excess is $500-$800. You can typically choose from $200-$2,500+.

🛡️

Security Features

Immobilisers, alarms, and garaging can reduce premiums. Some insurers also consider dashcam footage favourably.

📝

Cover Type & Level

Comprehensive costs more than TPFT, which costs more than TPP. Annual payment is cheaper than monthly instalments.

🏠

Multi-Policy Discounts

Bundling car + home + contents with one insurer often earns a 5-15% discount across all policies.

Car Insurance Costs in Australia (2026 Guide)

Indicative annual premiums for a standard driver aged 30-50 with a full licence and no recent claims.

Comprehensive

$1,200 - $2,000

~$100-167/mo

TP, Fire & Theft

$500 - $800

~$42-67/mo

Third Party Property

$300 - $500

~$25-42/mo

CTP (by state)

$300 - $700

Varies by state

Young Driver (under 25)

$2,500 - $5,000+

~$208-417/mo

Typical Excess Amounts

Standard excess: $500 - $800
Young driver excess: +$800 - $2,000
Windscreen excess: $0 - $400
Natural disaster/flood excess: Varies by provider and area

Market Positioning

Budget: Budget Direct, Youi
Mid-range: AAMI, GIO, Suncorp, NRMA
Premium: Allianz, QBE (broker)
Members: RACQ (QLD), RACV (VIC), RAC (WA)

Disclaimer: All prices shown are indicative estimates based on publicly available data and typical driver profiles as of early 2026. Actual premiums vary based on your vehicle, location, driving history, and chosen cover level. These figures are not quotes. Always obtain a personalised quote from the insurer directly. Prices and product features may change without notice.

10 Ways to Save on Car Insurance in Australia

Practical tips that could save you hundreds of dollars every year.

Compare every year

Don't just auto-renew. Compare estimates annually - MoneySmart and CHOICE both highlight switching as one of the best ways to save.

Increase your excess

Raising your excess from $600 to $1,000 can reduce premiums by 10-20%. Only do this if you can afford the excess at claim time.

Protect your no-claims discount

5+ claim-free years can earn up to 65% off. Consider paying small repairs out of pocket to protect your NCD.

Bundle your policies

Combining car, home, and contents with one insurer can save 5-15% across all policies.

Pay annually

Monthly payments include instalment fees. Paying upfront once a year is almost always cheaper - often saving 10-15%.

Limit named drivers

Restricting your policy to named drivers only (instead of "any driver") can lower your premium, particularly if you exclude under-25 drivers.

Park in a garage

Garaging your vehicle overnight reduces theft and hail risk, and can lower premiums compared to street parking.

Install security devices

Immobilisers and alarms can earn small discounts. Some insurers also consider dashcams favourably.

Choose the right cover level

If your car is worth under $5,000, TPFT may be more cost-effective than comprehensive. Do the maths.

Review your agreed value

If your car has depreciated, your agreed value may be too high, meaning you're paying for cover you don't need. Check RedBook for current values.

Switching & Renewal: When and How to Change Insurers

Your renewal date is the best time to review your cover and compare prices. Here's how to make the most of it.

Don't Auto-Renew Without Checking

Most Australian car insurance policies renew automatically each year. Your insurer will send a renewal notice (usually 2 - 4 weeks before renewal) showing next year's premium. This is your cue to compare. Premiums often increase at renewal even if you haven't made a claim - sometimes by 10 - 20% with no explanation beyond "market conditions". Don't accept the renewal price without checking alternatives first.

Compare 2 - 3 Weeks Before Renewal

Start comparing estimates from other providers about 2 - 3 weeks before your renewal date. You'll need your car's registration, make, model, year, and your driving history. Most providers offer online quotes in under 5 minutes. Get quotes from at least 3 - 4 insurers to see the full range of pricing available to you.

Check Your No-Claims Discount Transfers

Most Australian insurers will accept your no-claims discount from another provider. Ask the new insurer to confirm this before switching. You'll typically need a letter or email from your current insurer confirming your claims history. A 5+ year no-claims discount can be worth up to 65% off your premium, so losing it would wipe out any savings.

Time the Switch Correctly

Start your new policy from the day your old one expires. If you cancel mid-term, you may be charged a cancellation fee ($30 - $100 is common) or lose part of your premium. Some insurers offer pro-rata refunds; others keep the full year's premium. Read the cancellation terms in your current PDS before switching.

⚠️ Renewal Traps to Watch For

Loyalty tax - long-term customers often pay more than new customers. CHOICE has documented cases where switching saved hundreds of dollars.
Reduced cover at the same price - sometimes the premium stays the same but the agreed value has been quietly reduced, or excess has increased. Read the renewal letter carefully.
Promotional discounts that expire - first-year discounts (e.g. "20% off for new customers") disappear at renewal. Factor this into your year-two cost when signing up.
Bundled discount lock-in - if you have multi-policy discounts, check whether switching one policy affects discounts on your other policies with the same insurer.

How to Make a Car Insurance Claim

Step-by-step guide to the claims process in Australia.

Stay Safe

Ensure everyone is safe. Call 000 if there are injuries. Move vehicles if safe to do so.

Document It

Take photos, exchange details with other parties, get witness info. File a police report if needed (mandatory in some states for certain incidents).

Contact Insurer

Call your insurer's 24/7 claims line or use their app/website. Provide all details and photos.

Assessment

An assessor reviews the damage. Your insurer arranges repairs at an approved repairer or settles the claim.

Resolution

Vehicle is repaired or you receive payout (agreed/market value minus excess). Drive on.

Claim Tips

Always report incidents promptly (most policies require notification within 30 days)
Don't admit fault at the scene; let your insurer determine liability
Keep receipts for any emergency expenses (towing, accommodation)
If you disagree with a claim decision, first use your insurer's internal dispute process, then escalate to AFCA (Australian Financial Complaints Authority), which is free

Car Insurance in Australia: What You Need to Know

Key facts about the Australian car insurance market and how it differs from other countries.

CTP is Compulsory

Compulsory Third Party (CTP) insurance is mandatory in every state and territory. CTP covers personal injury to other road users caused by your vehicle. It is purchased through your vehicle registration in most states. Each state has its own CTP scheme: NSW uses private insurers via Green Slips, Victoria has the TAC, Queensland uses a CTP portal, and other states have their own government or hybrid schemes.

CTP vs Comprehensive

CTP only covers personal injury. It does not cover damage to any vehicle or property. Comprehensive, TPFT, and TPP insurance are all voluntary but cover property and vehicle damage. You need CTP for the legal requirement and voluntary cover for everything else. Around 95% of Australian drivers carry some form of voluntary car insurance in addition to their compulsory CTP.

Hail, Flood & Bushfire Risks

Hail damage is the number one comprehensive claim in Australia. Severe hailstorms regularly cause billions of dollars in vehicle damage, particularly in Sydney, Brisbane, and Canberra. Flood cover is sometimes excluded or optional - always check your PDS. Bushfire zones can significantly affect premiums, particularly in regional areas. There is no government insurance scheme for vehicles; all cover comes from your private insurer.

Dispute Resolution (AFCA)

All licensed Australian insurers must be members of the Australian Financial Complaints Authority (AFCA), which handles complaints at no cost to consumers. Insurers are regulated by ASIC (Australian Securities and Investments Commission) for conduct and APRA (Australian Prudential Regulation Authority) for financial stability.

State-Based CTP Differences

CTP costs and administration vary significantly by state. In NSW, you choose from competing private insurers (Green Slips). In Victoria, the TAC is a single government-run scheme funded through registration. In Queensland, you purchase CTP through an online portal with competing insurers. WA, SA, Tasmania, NT, and ACT each have their own arrangements. CTP typically costs $300-$700 per year depending on your state and vehicle type.

Market Structure

The Australian car insurance market is dominated by two major groups: IAG (AAMI, NRMA Insurance, CGU, WFI) and Suncorp (Suncorp, GIO, APIA, Shannons). Together they hold approximately 60-65% of the market. Allianz, QBE, and Budget Direct are significant players, while state-based motoring clubs (RACQ, RACV, RAC) are strong in their respective states.

Understanding Your Policy Document (PDS)

Every Australian insurer must provide a Product Disclosure Statement. Here's what to look for before you buy.

What is a PDS?

A Product Disclosure Statement is a legal document that outlines everything about your insurance policy: what's covered, what's excluded, your obligations, and how to make a claim. Under the Corporations Act 2001, all Australian financial product issuers must provide one. It's typically 40 - 80 pages and available as a PDF on the insurer's website. Read it before you buy, not after you need to claim.

Key Sections to Check

Definitions - terms like "market value", "excess", and "total loss" have specific meanings in your policy
What is covered - the events and scenarios where you can make a claim
What is not covered - exclusions and limitations, particularly around flood cover
Your obligations - what you must do to keep your cover valid (e.g. report changes, maintain the vehicle)
Claims process - how to make a claim, time limits, and what documentation you need

Your Duty of Disclosure

When you apply for car insurance, you have a legal duty of disclosure under the Insurance Contracts Act 1984. You must answer the insurer's questions honestly and completely. If you fail to disclose something material (e.g. a previous claim, licence suspensions, vehicle modifications), the insurer can reduce or refuse your claim, or cancel your policy. Recent reforms mean insurers must ask you specific questions rather than relying on a general duty, but honesty remains critical.

Making Changes Mid-Policy

If anything changes during your policy period, let your insurer know. Common changes that need to be reported:

Change of address (especially if you move to a higher-risk area or bushfire zone)
Adding or removing drivers from the policy
Vehicle modifications (tinting, lowering, engine mods, bull bars)
Change of use (e.g. starting to use the car for ride-sharing or deliveries)
Change of parking situation (garage to street, or vice versa)

Car Insurance FAQs

Answers to the most common questions about car insurance in Australia.

Is car insurance compulsory in Australia?

Yes and no. Compulsory Third Party (CTP) insurance is mandatory in all Australian states and territories. CTP covers personal injury to other road users caused by your vehicle. However, comprehensive, third party fire and theft, and third party property damage insurance are all voluntary. CTP does not cover damage to vehicles or property - you need voluntary insurance for that.

What types of car insurance are available in Australia?

Four main types: CTP (compulsory, covers personal injury, state-based), Comprehensive (covers your car and others' property, the most complete voluntary protection), Third Party, Fire & Theft (covers others' property plus fire/theft of your car), and Third Party Property Only (only covers damage you cause to others' property, the cheapest voluntary option).

How much does car insurance cost in Australia?

Comprehensive insurance averages $1,200-$2,000/year for a standard driver aged 30-50. Young drivers under 25 can pay $2,500-$5,000+. Third Party Fire & Theft averages $500-$800/year, and Third Party Property Only $300-$500/year. CTP varies by state, typically $300-$700/year. Your actual premium depends on vehicle, driver, location, and policy factors.

What's the difference between agreed value and market value?

Agreed value: you and the insurer set a fixed payout amount when you start the policy. If the car is written off, you get this amount (minus excess). Market value: the insurer pays what the car is worth at the time of the claim, which may be less due to depreciation. You can check current values on RedBook. Agreed value costs slightly more but provides more certainty.

What is CTP insurance and how does it differ from comprehensive?

CTP (Compulsory Third Party) insurance is mandatory and only covers personal injury to other people caused by your vehicle. It does not cover damage to any vehicle or property. Comprehensive insurance is voluntary and covers damage to your vehicle and others' property. You need both: CTP for the legal requirement, and comprehensive (or another voluntary cover) for vehicle and property damage protection.

What is a no-claims discount (NCD)?

A discount on your premium for each year you don't make an at-fault claim. Most Australian insurers offer up to 65% off after 5+ claim-free years. Some providers offer NCD protection, letting you make one claim without losing your discount. The no-claims discount remains one of the biggest ways to reduce your premium over time.

What if the other driver is uninsured?

If you have comprehensive cover, your insurer will cover your vehicle repair/replacement and may pursue the uninsured driver to recover costs. If you only have third-party cover, you'll need to pursue the uninsured driver yourself through the relevant state tribunal - NCAT in NSW, VCAT in Victoria, QCAT in Queensland, or the equivalent in your state.

Does car insurance cover natural disasters in Australia?

Most comprehensive policies cover hail, storm, and bushfire damage. However, flood cover is sometimes excluded or optional - always check your PDS carefully. Hail damage is the most common comprehensive claim in Australia. There is no government insurance scheme for vehicles; all cover comes from your private insurer. Some policies have a separate, higher excess for natural disaster or flood claims.

Am I covered if someone else drives my car?

It depends on your policy. Some policies cover "any authorised driver", while others only cover named drivers. Unnamed or young drivers (under 25) may incur a higher excess, sometimes an additional $800-$2,000. Restricting to named drivers can lower your premium.

Should I insure an old car comprehensively?

A common rule of thumb: if your annual comprehensive premium is more than 10% of the car's value, consider stepping down to Third Party Fire & Theft or Third Party Property Only. For a car worth $5,000 with an $800 comprehensive premium, TPFT at ~$500 may make more financial sense.

Are personal belongings in my car covered?

Generally no. Personal items stolen from or damaged in your car (laptops, bags, etc.) are typically covered under your contents insurance, not car insurance. Some comprehensive policies include limited cover ($200-$500) for items in the car, but check your specific policy wording.

How can I lower my car insurance premium?

The top ways: compare estimates annually (don't auto-renew), increase your excess, maintain your no-claims discount, bundle policies, pay annually instead of monthly, limit named drivers, park in a garage (especially to avoid hail), install security devices, and choose the right level of cover for your car's value.

What happens if my car is written off?

You receive a payout of either the agreed value or market value (depending on your policy), minus your excess. The insurer takes ownership of the wreck. If you owe more on finance than the car is worth, you may want to consider GAP insurance to cover the shortfall.

Does my Australian car insurance cover me overseas?

Generally no. Australian car insurance typically only covers vehicles within Australia, unless your policy specifically states otherwise. If you're renting a car overseas, you'll need separate cover (either through the rental company or your credit card's rental vehicle benefit).

How do I complain about my insurer?

First, use your insurer's internal complaints process. If unresolved, escalate to the Australian Financial Complaints Authority (AFCA), which is free. All licensed Australian insurers must be AFCA members. Insurers are regulated by ASIC and APRA.

Car Insurance Glossary

Key terms explained in plain language.

Excess: The amount you pay out of pocket when making a claim. Higher excess = lower premium.
No-Claims Discount (NCD): A discount earned for each claim-free year. Can reach up to 65% after 5+ years.
Agreed Value: A fixed payout amount set when you take out the policy. Paid if the car is written off.
Market Value: The car's current value at the time of a claim, determined by market conditions. Tools like RedBook are commonly used.
Third-Party Liability: Cover for damage you cause to other people's vehicles or property.
Comprehensive: Full cover: damage to your car (accidents, theft, fire, hail, storm, bushfire) plus third-party liability.
Premium: The amount you pay for your insurance, monthly or annually.
Underwriter: The company that actually provides the insurance cover. Some brands are underwritten by larger insurers behind the scenes.
Write-Off: When repair costs exceed the vehicle's value. The insurer pays out and takes the wreck.
CTP (Compulsory Third Party): Mandatory insurance covering personal injury to other road users. Purchased as part of vehicle registration. Also known as a Green Slip in NSW.
AFCA: Australian Financial Complaints Authority. Free dispute resolution for insurance and financial complaints.
GAP Insurance: Covers the gap between your car's market value and what you owe on finance if it's written off.
PDS: Product Disclosure Statement. The legal document that details your policy's cover, exclusions, and conditions.

Car Insurance by Brand

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On This Page

What is Car Insurance?

Types of Car Insurance in Australia

Third Party Property Only

Third Party, Fire & Theft

Comprehensive

CTP (Compulsory Third Party) Insurance

Top Australian Car Insurance Providers

How to Choose the Right Car Insurance

Newer or High-Value Car

Older or Lower-Value Car

Tight Budget

Comparison Checklist: What to Look at When Comparing

Australian Car Insurance Providers Compared

What Does Car Insurance Cover?

Agreed Value vs. Market Value

Common Car Insurance Exclusions

Driving Under the Influence

Mechanical & Electrical Breakdown

Racing & Off-Road Use

Unlicensed or Unregistered

Personal Belongings

Using Your Car for Business

Pre-existing Damage

Flood (Some Policies)

What Affects Your Car Insurance Premium?

Vehicle Make & Model

Vehicle Value

Driver Age & Experience

Location & Postcode

No-Claims Discount

Excess Amount

Security Features

Cover Type & Level

Multi-Policy Discounts

Car Insurance Costs in Australia (2026 Guide)

Typical Excess Amounts

Market Positioning

10 Ways to Save on Car Insurance in Australia

Compare every year

Increase your excess

Protect your no-claims discount

Bundle your policies

Pay annually

Limit named drivers

Park in a garage

Install security devices

Choose the right cover level

Review your agreed value

Switching & Renewal: When and How to Change Insurers

Don't Auto-Renew Without Checking

Compare 2 - 3 Weeks Before Renewal

Check Your No-Claims Discount Transfers

Time the Switch Correctly

⚠️ Renewal Traps to Watch For

How to Make a Car Insurance Claim

Stay Safe

Document It

Contact Insurer

Assessment

Resolution

Claim Tips

Car Insurance in Australia: What You Need to Know

CTP is Compulsory

CTP vs Comprehensive

Hail, Flood & Bushfire Risks

Dispute Resolution (AFCA)

State-Based CTP Differences

Market Structure

Understanding Your Policy Document (PDS)

What is a PDS?

Key Sections to Check

Your Duty of Disclosure

Making Changes Mid-Policy

Car Insurance FAQs

Car Insurance Glossary

Car Insurance by Brand

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