Car Insurance in Australia
There are two major types of car insurance:
- Compulsory Car Insurance
- Optional Car Insurance
Compulsory Car Insurance is required for you to be able to drive your car in Australia and must be taken out when you are registering your car. In NSW this insurance is called Compulsory Third Party (CTP) Insurance or Greenslip.
Features of CTP Insurance (Greenslip)
Your CTP car insurance covers the following all around Australia:
- your passengers
- other road users, such as drivers, passengers, pedestrians, cyclists, motor cyclists and pillion passengers
- injuries caused through the use of a trailer
CTP Insurance does not cover:
- damage to property or other vehicles
(Source: http://www.maa.nsw.gov.au/default.aspx?MenuID=88)
For Optional Car Insurance in Australia there are a few options:
- Comprehensive Car Insurance
- Third Party Fire and Theft Car Insurance
- Third Party Property Damage Car Insurance
Comprehensive Car Insurance – this type of car insurance covers you for damage to your own car and for damage you may cause to the property of others.
Third Party Fire and Theft Car Insurance - covers your car for fire and theft and also damage you might cause to someone else's property.
Third Party Property Damage Car Insurance – this car insurance covers you for damages caused by your car to the property of others.
While optional car insurance is not required, consider the consequences should you get into a car accident. Besides health considerations, how much would it cost to repair your car or someone else’s car should you hit one – there are quite a few Lamborghinis and Ferraris on Sydney streets which cost quite a money to be repaired.
When you get a car insurance quote from different car insurance providers, you will find out there is quite a difference in car insurance premium you would pay. Do not assume that cheaper car insurance is better - consider the value, what you will and won't be insured for (e.g. windscreen cover).
Another important consideration is car insurance excess. Excess is the amount you have to pay when you make a car insurance claim. So if something happens and you do claim the excess has to be paid. Most car insurance providers allow you to choose your excess - the higher the excess the lower car insurance premium you pay, the lower the excess the higher car insurance premium you pay. So when you start comparing car insurance quotes from different car insurance providers, don't forget to check the default excess the insurance company used to calculate your car insurance premium!
Some of car insurance providers in Australia to consider: car insurance from NRMA Insurance, AAMI, GIO.
Please note that information provided on this page is of a generic nature and before you make any decision, you should consult an advisor or a car insurance provider.
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Living in Sydney 