Car insurance in NSW

Comprehensive car insurance offers the most cover for your car. This type of car insurance policy covers repair and replacement costs for damages to your own vehicle caused by various events, including accidents, storms and fires. It also covers repair costs for accidental damage you cause to other people’s property.

TPFT insurance typically covers accidental damage you cause to another person’s car or vehicle. It also covers your vehicle if it’s stolen or destroyed by fire. It generally won’t cover your vehicle in a traffic incident, but some insurers may offer cover if the at-fault party is an uninsured driver.

As the most basic level of optional car cover, TPPD car insurance covers the repair costs for vehicles or property you damage in a car accident. It doesn’t cover any repair costs for your own vehicle, except in limited circumstances.

Green Slip insurance is mandatory for all registered vehicles in NSW, as it covers your legal liability if anyone is injured or killed while you’re driving your vehicle on the road. In NSW, you have the option of choosing between several different insurers. The NSW state government’s Green Slip Check website can help you find this type of cover.

There is no best type of car insurance for everyone in NSW. It depends on your circumstances and how much cover you want while driving.

Every car on NSW roads must be covered by a Green Slip (or CTP insurance), but it doesn’t cover damages to vehicles or property. Comprehensive, TPFT and TPPD all cover vehicle and property damage to varying extents.

If covering damage to your own car is your main priority, a comprehensive policy is worth considering. Comprehensive car insurance covers repair costs for both you and other drivers from an insured event, and generally has the most optional extras to choose from to extend your cover.

For car insurance that mainly covers damage you cause to other cars, third party cover such as TPFT and TPPD are typically more cost-effective policies than comprehensive cover. However, these policies only have limited cover for your vehicle.

To help you in your decision on which insurance policy is suitable for you, we’ve broken down what each level of cover could offer you.

While some of the below features may be available as add-on cover (at an extra cost to you), they can be invaluable if you find yourself in a tight spot:

• Hire car when your motor vehicle is a total loss, stolen or in the repair shop
• Excess-free windscreen cover for damaged window glass
• Roadside assistance to cover services like towing if your car breaks down away from home.
• Choice of repairer for more options of where your damaged car gets fixed.

Policies will be subject to limits, sub-limits, exclusions and restrictions. You should always check your new policy’s PDS and Target Market Determination (TMD) to ensure it’s suitable for your needs.

The cost of car insurance premiums in NSW depends on many different factors, including your:

• Car’s model, age and parking location
• Claims history
• Driving experience (how long you’ve had your Australian licence for).

If you’re shopping for car insurance at the right price for you, read about how car insurance is calculated for a market value.

Your policy itself isn’t affected by the state you live in. The only difference to insuring a vehicle in NSW over another state or territory is that you must purchase Green Slip insurance before you register your vehicle. Elsewhere in Australia it’s part of your registration fees.

However, living in NSW does impact how much you pay for your insurance. Where you park your car at night, how far you drive each year and the crime statistics in the area in which you live can influence your premiums.

You may have to pay a basic excess when you claim on your car insurance policy. Sometimes, you may even need to pay an additional excesses, such as a young driver excess or an unlisted driver excess.

Regardless of whether you have a comprehensive car insurance policy or third party car insurance, it’s important to let your insurer know about all drivers (including learner drivers) who use the vehicle, as you may be required to list them on your car insurance policy. This may help you avoid some additional excesses in the event of a claim.

Under certain circumstances, there are several ways you could get cheaper car insurance, including:

• Age restrictions. On your policy, you can limit the age of people who drive your car (e.g. no one younger than 25). This could save you some money since younger drivers tend to attract higher premiums.
• Annual premiums. Opting to pay your premiums once a year could save you some money, as paying in monthly or quarterly instalments may be subject to additional fees with some insurers.
• Online discounts. Some insurers may offer a certain percentage off your first year’s premium when you purchase a policy online.
• Safe driving. Typically, the less you claim, the less you’ll pay in car insurance premiums.
• Secure parking. Policyholders who park their car in a garage are likely to pay lower premiums than drivers who park on the street.

Selecting a higher basic excess on your policy may also lower your car insurance premium. However, before setting a higher excess, consider if it’s an amount you could afford to pay if you need to claim.

Your postcode can affect your insurance premiums because your new neighbourhood may have a different rate of drivers making car insurance claims. The frequency of traffic accidents in your neighbourhood may also affect your insurance premium.

It’s worth giving your insurer a call when you move so you don’t risk any future claims being denied.

A range of car insurance providers operating in NSW offer no claim discounts. To be eligible for this discount, you’ll have to hold your policy for a set number of years without making a car insurance claim.

The number of car thefts in NSW is one of the highest in the country. As of June 2024, motor vehicle theft in NSW has risen 12.5% over the last two years, as 14,891 motor vehicle car thefts were recorded in NSW that year.¹

Drivers in NSW who have a comprehensive car insurance policy or a TPFT policy can be covered against car theft.