Car insurance in the Northern Territory (NT)

While Compulsory Third Party insurance (known as the MAC scheme in the NT) is required for all registered vehicles, additional car insurance is still worth considering.

To help you decide on the level of cover you want for your motor vehicle, here’s a brief rundown on what each type of cover includes.

No matter what type of cover you choose from these car insurance options, always read policy documents like the Product Disclosure Statement (PDS) and Target Market Determination (TMD) before you purchase.

Car insurance can come with a wide range of features, some of which may be included automatically in your policy and others that need to be added.

Some optional benefits insurers may provide include:

• Roadside assistance. This feature can be valuable when you’re in a stressful situation, like a breakdown or accident, and require towing or other assistance on the Australian roads.
• Excess-free windscreen repair. This feature can cover the cost of repairing or replacing a damaged windscreen and may save you from the excess payment.
• Accident hire car cover. If your vehicle is being repaired or replaced due to an accident, your insurer could provide you a hire car until it’s back on the road.

The cost of car insurance premiums varies between customers across all states and territories (including the NT), as they’re based on many factors that are usually unique to the driver. Some of these factors can include:

• Your car. The vehicle’s age, make, model and market value could have an impact on your insurance costs. This is because some car parts are easier and cheaper to fix and replace than others, and your insurance will factor this into the cost of your policy.
• Your age. Younger drivers may pay higher premiums for their car insurance, as they generally have less experience on the roads.
• Where you live. Insurers could consider your location when calculating your premiums, since where you live can contribute to your risk of claiming. For example, living in Darwin may come with higher car theft rates or likelihood of having an accident, since the population is higher there. Where you park your car at home or work can also affect your premiums.
• Level of cover. The type of car insurance you choose will affect your premiums. Lower levels of cover (like third party policies) may cost less, but they also offer less coverage, and you may come away from an incident with significant out-of-pocket costs. On the other hand, comprehensive cover will usually cost more, but you’ll have more value for money with broader coverage.

If you’re looking to lower the cost of your car insurance in the NT, you might be able to do the following (depending on your policy and needs):

• Park securely. Parking in a secure parking spot overnight (like a lockable garage) can lower your risk of theft and hail damage and, with that, the price of insurance, too.
• Increase your excess. If your provider offers this insurance option, you can choose a higher excess amount to lower your premium. However, keep in mind that the excess is paid when you make a claim, so make sure it’s still an amount you can afford to pay in the event of an insurance claim.
• Restrict the age of drivers. You can inform your insurer that you’ll only allow drivers over a certain age (e.g. 25 years) to operate your car, which may help you save on your insurance and additional excess costs.