Is car insurance compulsory in Australia?
Compulsory Third Party (CTP) insurance, also known as Green Slip (in New South Wales) or MAI (in other states), is mandatory for all registered vehicles in Australia. It covers compensation for personal injury caused to others in an accident. However, CTP does NOT cover damage to vehicles or property. Comprehensive and third-party property damage insurance are optional but strongly recommended.
What is the difference between CTP, third-party property, and comprehensive insurance in Australia?
CTP (Compulsory Third Party) covers personal injury claims from people injured in accidents involving your vehicle. Third-party property insurance covers damage you cause to other people's vehicles or property but not your own. Comprehensive insurance covers all of the above plus damage to your own vehicle, theft, fire, and other perils. CTP is mandatory; the others are optional.
How does CTP work and where do I get it?
CTP is purchased when you register your vehicle. Depending on your state or territory, it may be purchased from a government body or from a private insurer: in NSW it can be purchased from approved private insurers (green slip); in Queensland, Victoria, and SA it is included in registration fees and administered by a government authority. Your registration renewal notice will detail your state's process.
Does my car insurance cover me if I drive in New Zealand?
Standard Australian car insurance policies typically do not cover you when driving in New Zealand or any other country. If you are transporting or driving a vehicle in New Zealand, you will need separate local coverage. Check your policy's territorial limits before travelling.
What is an agreed value policy vs a market value policy in Australia?
With a market value policy, your insurer pays the current market value of your car at the time of the claim (i.e. what it would sell for). With an agreed value policy, you and the insurer agree on the car's value when you take out the policy, and that amount is paid if the car is written off. Agreed value provides more certainty, particularly for newer or modified vehicles, but typically has a slightly higher premium.
What is the General Insurance Code of Practice in Australia?
The General Insurance Code of Practice is a voluntary but widely adopted code that commits Australian insurers to fair, transparent, and timely service standards. It covers claims handling timeframes, communication standards, financial hardship procedures, and dispute resolution. It is administered by the Insurance Council of Australia and overseen by the Australian Securities and Investments Commission (ASIC).
How do I make a car insurance claim in Australia?
(1) Ensure safety and exchange details with other parties; (2) Take photos of all damage; (3) Report to police if required (e.g. hit and run, injury, significant damage); (4) Contact your insurer as soon as practicable — most have 24/7 claims lines; (5) Provide all requested information including a completed claim form; (6) An assessor will inspect the vehicle; (7) Repairs will be authorised through the insurer's repairer network or you receive a payout.
What factors affect car insurance premiums in Australia?
Key factors: (1) Driver's age and experience — younger and older drivers pay more; (2) Claims history; (3) Postcode — urban areas and high-theft suburbs attract higher premiums; (4) Vehicle make, model, age, and value; (5) Annual kilometres driven; (6) Agreed vs market value choice; (7) Excess level; (8) Security features; (9) Finance or ownership status.
Can I get car insurance if I have previous claims or convictions in Australia?
Yes, though your options may be more limited and premiums higher. Specialist high-risk insurers exist for drivers with poor claims histories, licence suspensions, or traffic offences. Full disclosure is always required — non-disclosure of material facts can void your policy at the time of a claim.
What is the Australian Financial Complaints Authority (AFCA)?
AFCA is a free, independent dispute resolution service for financial services complaints including general insurance disputes. If you have a complaint about your insurer that cannot be resolved directly with the company, you can lodge a complaint with AFCA at afca.org.au. AFCA can award binding determinations against insurers of up to $1.08 million for some claim types.