New South Wales (NSW) boasts some of Australia’s most recognisable scenery. Our Opera House and Harbour Bridge are as iconic as the Eiffel Tower or Big Ben, and our magnificent NSW coastline is dotted with picture-perfect spots from Port Macquarie to Byron Bay and from Sydney to Newcastle. Or, if you just want a taste of the quirky, Parkes has the annual Elvis Festival!
With so much road to cover, NSW residents would be well served with some form of car insurance product. So, here’s what you need to know about car insurance in NSW.
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Comprehensive car insurance offers the most coverage of any product. This type of car insurance policy covers the repair costs for any accidental damage you cause to other people’s property, plus any repair or replacement costs for your own vehicle caused by a variety of events, including accidents, storms and fires. You may have access to additional benefits like windshield replacement, roadside assistance membership and more!
TPFT insurance will cover the cost of any damage you cause to another person’s car or vehicle. It won’t cover your vehicle’s repair costs if you’re at fault in a traffic incident but your policy may include limited cover for the replacement cost of your vehicle if it’s stolen or destroyed by fire.
As the most basic level of optional car cover, TPPD car insurance will pay towards the repair costs for any vehicles or property you may damage in a car accident when you’re at fault. It doesn’t cover any repair costs for your own vehicle, except in very limited circumstances.
Green Slip insurance is mandatory for driving in NSW, as it covers your legal liability if you injure or kill someone on the roads. In NSW, you have the option of choosing between several different insurers; the NSW state government’s Green Slip Check website is the best resource to help you find this type of cover.
While some of the below features may be considered as optional extras (at additional cost to you), they can be invaluable if you find yourself in a tight spot:
Policies will be subject to limits, sub-limits, exclusions and restrictions. You should always check your policy’s relevant Product Disclosure Statement (PDS) to ensure it’s suitable for your needs.
Every NSW driver must have Green Slip insurance, but how do you know which additional insurance you should buy and which policy is right for you? Choosing a level of car insurance essentially comes down to what your car is worth to you and whether you can afford the repair or replacement cost of your vehicle.
To help you in your decision, we’ve broken down what each level of cover can offer you.
| Insurance type | Damage to your car | Damage to another person’s car or property | Injuries or death to other people in an accident |
| Comprehensive | ✓ | ✓ | ✓ |
| TPFT | ✗ | ✓ | ✓ |
| TPPD | ✗ | ✓ | ✗ |
| Note: Many factors and considerations may affect the level of cover you can receive. You should always read your PDS for specific exclusions and conditions of your cover. | |||
The cost of car insurance in NSW depends on many different factors, each of which varies across each customer, so it’s a little hard to get an example of the average premium! For example, your car insurance premium will be affected by factors like your:
For an accurate and more detailed idea of your potential car insurance costs, you can complete your own quote through our comparison service.
If you’re shopping for car insurance at the right price for you, read about how car insurance is calculated.
These example premiums may not accurately reflect how much you may pay for cover due to external and personal factors particular to you. For a more detailed idea of your potential car insurance costs, you can complete your own quote through our comparison service.
If you’re shopping for car insurance at the right price for you, read about how car insurance is calculated.
Your policy itself isn’t affected by the state you reside 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, whereas 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 weather elements you expose your car to can all influence your premiums.
The number of car thefts in NSW is one of the highest in the country. Motor vehicle theft in NSW (as of December 2022) has risen 17% over the last two years.1 In 2022 there were 12,274 motor vehicle car thefts in NSW.
Drivers in NSW who have a comprehensive car insurance policy or a TPFT policy can be covered against car theft.
Having mandatory Green Slip cover when driving in NSW doesn’t mean your car is protected. Accidents can strike at any time, so covering your car with another type of policy (whether Third Party Property Damage or comprehensive) can give you peace of mind when you’re on the road.
Comprehensive car insurance pays for repair costs for both you and other drivers, regardless of who’s at fault in an accident. It also covers storm and fire damage on top of theft and offers a host of optional extras to choose from to extend your cover.
NSW Green Slip or CTP insurance is quite different in that it will only cover your legal liability if you cause injury or death to another driver in an accident where you’re at fault. It does not cover damage to your or other people’s cars and property. This type of cover is compulsory to drive legally in Australia.
In NSW, you are free to choose your Green Slip insurer if you’re not happy with the price you’re paying for cover each year. In fact, NSW is one of the few states that let you pick your Green Slip insurer.
Potentially, yes. Your postcode can affect your insurance premiums because your new neighbourhood may have a different rate of drivers making insurance claims. Also, where you park at night can affect your car insurance premiums. For example, if you park in a locked garage, your premium will reflect the lower likelihood of it being stolen, whereas parking it on the street may have the opposite effect.
Also, traffic accidents in your neighbourhood can affect your insurance premium. It’s best to give your insurer a call when you plan on moving not only so you can budget for the new price, but also so you don’t risk any future claims being denied because your insurer didn’t know about your new address.
You may have to pay a basic excess when you claim on your car insurance policy if you’re determined to be at fault for the incident or the third party responsible can’t be identified. Sometimes, you may even need to pay an additional excess, such as a young driver excess (for drivers under a certain age) or an unlisted driver excess (if the driver wasn’t added to your policy).
Regardless of whether you have a comprehensive car insurance policy or a more basic third party car insurance, it’s vital that you list all drivers (including learner drivers) who use the vehicle on your car insurance policy to avoid additional excesses.
Depending on your policy, you may have a choice of excess amounts. If you choose a higher excess, your premiums may be lowered as a result, and vice versa.
A range of car insurance insurers operating in NSW offer no claim discounts. You’ll have to hold your policy for a set number of years without making a claim to be eligible for this discount.
Compare the Market’s Stephen Zeller works hard to make sure consumers have the facts when it comes to their car insurance, including what’s covered and how comparing policies can benefit them.
Stephen has more than 30 years of experience in the financial services industry and is an Allied Member of the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) and helps review general insurance content on Compare the Market to ensure it accurately breaks down complex insurance topics.
1 NSW Bureau of Crime Statistics and Research – NSW Recorded Crime Statistics quarterly update. December 2022. Accessed March 2023.
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