Types of Car Insurance
CTP (Compulsory Third Party) is mandatory and included in your registration fee. It covers injuries to other people in an accident you cause. It does NOT cover damage to vehicles or property.
Third Party Property covers damage you cause to other peoples vehicles and property. Does not cover damage to your own car. Cheapest optional insurance, from $300-500/year.
Third Party Fire and Theft adds fire and theft protection for your car on top of third party property. Good value for older cars worth $5,000-15,000.
Comprehensive covers everything — damage to your car, other cars, fire, theft, hail, and more. Most expensive but recommended for newer or financed vehicles. Costs $800-2,500/year depending on your car, age, and driving history.
Major Providers Compared
| Provider | Strength | Price Range |
|---|---|---|
| NRMA/RACV | Established, good claims service | $$$ |
| AAMI | Good value, popular choice | $$ |
| Budget Direct | Cheapest online-only option | $ |
| Youi | Customisable, pay for what you need | $$ |
No Claim Bonus
Your no claim bonus (NCB) is a discount that builds up each year you do not make a claim. After one claim-free year you might get a 10% discount, building up to 60-65% after 5-6 years. This is the single biggest factor in reducing your premium. Some insurers offer NCB protection for an extra fee which means one claim will not reset your bonus.
Tips for New Migrants
As a new driver in Australia with no local driving history, expect higher premiums. You can reduce costs by choosing a higher excess (the amount you pay before insurance kicks in), installing a dashcam, parking in a garage, and limiting your annual kilometres. Compare at least 3-4 providers online — prices can vary by hundreds of dollars for the same coverage. Use comparison sites like Compare the Market, iSelect, or Canstar.