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Car insurance for every part of New South Wales (NSW)

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. Our magnificent NSW coastline is perfect for road trips 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!

As of March 2021, NSW was home to more than eight million residents old enough to drive,1 and more than four million passenger vehicles on NSW roads as of January 2021.2

All of these vehicles need some form of car insurance, so here’s what you need to know about car insurance in NSW.

Why compare car insurance with us?

Cover for any driver

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Tell us a few details and in moments you can review a number of insurers. It’s a streamlined way to discover how much you can save on car insurance in NSW.

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What types of car cover are available in NSW?

Comprehensive car insurance

Comprehensive car insurance offers the most coverage of any product. This type of car insurance policy covers car theft and repair costs for any accidental damage you cause to other people’s property, plus any repair or replacement costs for your own vehicle. Additional benefits may include windshield replacement, cover for your belongings, roadside assistance membership and more!

Third Party Property Damage

Third Party Property Damage 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 does not cover any repair costs for your own vehicle (that’s what comprehensive cover is for), so it’d be wise to keep some money aside in case your vehicle needs work in the future.

Third Party Fire & Theft

Third Party Fire & Theft insurance functions similarly to Third Party Property Damage cover, with some added features. It includes cover for the replacement cost of your vehicle if it’s stolen or destroyed by fire. These policies can also cover vandalism in some situations according to the terms and conditions set out in the policy). It still won’t cover your vehicle’s repair costs if you are at fault in a traffic incident, but it’s still a more robust option than Third Party Property Damage insurance.

CTP Insurance (Green Slip)

Compulsory Third Party (CTP) or Green Slip insurance is mandatory for driving in NSW. It covers your liability if you injure 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.
Regardless of which level of cover you choose, the inclusions, exclusions and details of what you're insured for will be outlined in the relevant Product Disclosure Statement (PDS).

Which car insurance policy features should NSW drivers look for?

While some of the below features are only available 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, sublimits, exclusions and restrictions. You should always check the PDS to ensure the policy is suitable for your needs.

driver in nsw

Which type of car insurance should I get in NSW?

Every NSW driver must have Green Slip insurance, but how do you know (a) which additional insurance you should buy and (b) 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 typeDamage to your carDamage to another person’s car or propertyDamage or loss caused by theft or fireInjuries or death to other people in an accident
Green Slip (or CTP)NoNoNoYes
Third Party PropertyNoYesNoNo
Third Party Fire and TheftNoYesYesNo
ComprehensiveYesYesYesNo

So, how much will it cost?

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! Your car insurance premium will be affected by factors like your:

  • Car’s model, age and parking location
  • Claims history
  • Driving experience (how long you’ve had your license for).

If you’re looking for car insurance in NSW, try our handy comparison tool to get a car insurance quote and find out what coverage, excess payments, optional extras and prices are on offer.

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Car insurance in NSW: Is it different to other states?

Whether you’re insuring your car in NSW or the furthest reaches of WA, your policy isn’t affected by the state you choose to reside in. The only difference to insuring a vehicle in NSW over another state or territory is that you have to purchase CTP/Green Slip insurance before you register your vehicle, whereas elsewhere in Australia it’s part of your registration fees.

However, the environment you drive in and where your car is kept does impact your policy. 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.

Car thefts in NSW

While the number of car thefts in NSW has thankfully gone down steadily in recent years, the state still has one of the highest numbers of car theft in the country. In the 2020 to 2021 financial year there were 8,525 passenger car thefts in NSW.3

Drivers in NSW who have a comprehensive car insurance policy or a Third Party Fire and Theft policy can be covered against car theft. These policies can also cover vandalism and malicious damage caused during a theft or attempted theft.

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Frequently asked questions about car insurance in NSW

What’s the difference between Green Slip and comprehensive car insurance?

It’s simple! Comprehensive car insurance pays for repair costs for both yourself and other drivers, regardless of who’s at fault in an accident (provided you have not breached the law). It also covers storm and fire damage on top of theft.

NSW Green Slip or CTP insurance is quite different in that it will only cover your 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.

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Am I stuck with a single Green Slip insurer in NSW?

Lucky for you, no. Nothing is stopping you from choosing a different Green Slip insurer if you’re not happy with the price you’re paying for cover each year. In fact, NSW is one of only three states that let you pick your Green Slip insurer.

Compare car insurance through our free comparison service today.

I’m moving house. Will my car insurance change much?

Potentially, yes. Your postcode can affect your insurance premiums because your new neighbourhood may have a higher or lower rate of drivers making insurance claims. For example, say you’re moving from Penrith up the NSW coast to Newcastle. Newcastle has a slightly higher incidence of car thefts, which may lead to a higher premium.3

Furthermore, where you park your car at night also affects your premium. 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.

Finally, traffic accidents both 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.

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Will I have to pay any additional excess payments?

You may have to pay an additional excess when making a claim on your car insurance policy, regardless of whether you (or whoever was behind the wheel at the time) were the at-fault driver. These extra excess payments can be in the form of a younger driver excess (for drivers under a certain age) as well as an unlisted driver excess (if the driver wasn’t added to your policy).

Regardless of whether you have a comprehensive car insurance policy or something a little more basic, it’s vital that you list all drivers who use the vehicle on your car insurance policy.

Do car insurers in NSW offer no claim discounts?

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.

Sources

1National, state and territory population. Australian Bureau of Statistics, Australian Government. 2021. Accessed October 2021.
2Motor Vehicle Census, Australia. Australian Bureau of Statistics, Australian Government. 2021. Accessed October 2021.
3NMVTRC – Theft Watch – 12 months to June 2021: Passenger/light commercials. Accessed October 2021.

Stephen Zeller, General Manager

Meet our car insurance expert, Stephen Zeller

As General Manager of General Insurance, 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.

Car insurance tips for NSW residents from Stephen

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