Why Insurance Matters
Insurance protects you from financial catastrophe. Without it, a house fire, car accident, serious illness, or lawsuit could wipe out years of savings overnight. Many Chinese migrants underinsure because insurance culture in China is different. In Australia, adequate insurance is a cornerstone of financial security.
Essential Insurance
Car insurance (CTP + comprehensive): CTP (Compulsory Third Party) is mandatory and included in your registration — it covers injuries to other people. Comprehensive insurance ($800-2,000/year) covers damage to your car and others'. Third party property ($300-600/year) is a budget option covering damage to others' property only. Never drive without at least third party property.
Home and contents insurance: Home insurance covers the building structure ($1,000-3,000/year). Contents insurance covers your belongings — furniture, electronics, clothing, jewellery ($300-800/year). Renters should always get contents insurance. Calculate your contents value — most people underestimate by 50% or more.
Health insurance: Covered in detail in our separate health insurance guide. Essential if earning over $93,000 to avoid the Medicare Levy Surcharge.
Important But Often Missed
Life insurance: Pays a lump sum to your family if you die. Critical if you have dependents or a mortgage. Basic cover through super may not be enough — the average super life insurance pays $200,000, but most families need 8-10x annual income. Standalone policies cost $30-100/month depending on age and cover amount.
Income protection: Replaces up to 75% of your income if you can't work due to illness or injury. Waiting periods of 30-90 days. Pays until you return to work or reach age 65. Premiums are tax-deductible. Often available through your super fund at group rates. This is the insurance most financial advisors say you should prioritise.
Travel insurance: Essential for overseas trips. Covers medical emergencies (hospital bills overseas can be $50,000-500,000+), trip cancellation, lost luggage, and delays. For trips to China, ensure the policy covers the specific activities you'll be doing. Annual multi-trip policies save money if you travel more than twice a year.
Saving on Premiums
- Increase your excess (deductible) to lower premiums — $500-1,000 excess instead of $200
- Bundle home and contents with the same insurer for 10-15% discount
- Pay annually instead of monthly to avoid surcharges (5-10% extra for monthly)
- Compare quotes from at least 3 insurers — use comparethemarket.com.au or iSelect
- Install security systems and smoke alarms for home insurance discounts
- Maintain a good driving record for car insurance discounts