Car insurance in Tasmania
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Top 5 things to know about car insurance in Tasmania
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A guide to car insurance in Tasmania
Updated 15 May 2024
Kochie’s top tips for Tasmanians
Looking for great value car cover in Tassie? Our Economic Director David Koch shares our expert tips to help you save.
David Koch
Economic Director
Video Transcript
Tassie is a gorgeous island, but to see most of it, you’ll need a car and that means you’ll need car insurance too. But car insurance doesn’t have to break the bank! You can find value for money at any level of cover, from basic to comprehensive. If you, like most drivers, want financial protection against damage to your car, you’ve got three options.
Third Party Property Damage will cover you for damage you cause to other people’s vehicles and property and, in limited circumstances, your own vehicle. Third Party Fire & Theft adds cover for fire and theft on top of that. And comprehensive car insurance covers damage to your car and more, for the ultimate piece of mind. But finding suitable cover doesn’t mean being taken for a ride.
Compare the Market has these tips to help you save. Shift your excess. If you’re a safe driver, you could pay less on your premium if you chose to pay a higher excess in the event of a claim. Update your details.
Small changes like parking your car in a garage overnight or restricting your policy to drivers aged 25 and over could lower your premiums. If you’re now driving less because you’re working from home, see if a low kilometre policy could be right for you. Pay your way. Pay fortnightly, monthly or annually to suit your budget and cash flow but remember that paying in instalments can be more expensive than paying annually.
And – most importantly – compare your options! It’s the best way to make sure you’re getting good value for your money. Start your journey today with Compare the Market.
What types of car cover are available in Tasmania?
Comprehensive cover
Comprehensive car insurance is the broadest level of cover available. This type of car insurance policy covers repair costs for both your car and other vehicles or property that you damage. It can even cover damage caused by things like storms and hail. Optional extras such as choice of repairer or accident hire car can also be added to a comprehensive policy.
Third Party Fire and Theft (TPFT)
TPFT insurance covers other cars for damages caused by your car. While this level of car insurance typically doesn’t cover your own car in an accident, it does provide cover for repair or replacement costs if your vehicle is stolen or destroyed by fire.
Third Party Property Damage (TPPD)
TPPD insurance covers other vehicles and property from accidental damage that you caused. Typically, TPPD will not cover damage to your car caused by events like accidents, fires and storms.
Compulsory Third Party (CTP)
CTP insurance is mandatory for all motorists in Tasmania. If someone is injured or killed as a result of a collision you cause with your vehicle (registered in Tasmania), CTP covers your legal liability for the associated costs. It’s usually bundled with your motor vehicle registration fees and the fee is sent onto the Motor Accidents Insurance Board (MAIB).
What each car insurance policy covers
With the exception of CTP, Australian car insurance is completely optional. It’s still worth considering extra coverage for your car even if only third-party insurance cover. The insurance you buy will depend on how you value your car and what incidents you want to be covered for.
There’s a range of car insurance policies out there, spread across different tiers. Here’s a quick comparison of what each type of insurance generally covers, together with noted exclusions.
| Insurance type | Damage/ total loss to your car | Damage to another person’s car or property | Damage or loss caused by theft or fire |
|---|---|---|---|
| Third Party Property Damage | ✗ | ✓ | ✗ |
| Third Party Fire and Theft | ✗ | ✓ | ✓ |
| Comprehensive | ✓ | ✓ | ✓ |
| Please note: There are more factors and variables that may affect your level of coverage. Always refer to the relevant Product Disclosure Statement (PDS), which includes important information specific to all policies. Also read through the Target Market Determination (TMD) as this can let you know whether you’re the right audience for the product. | |||
What options do Tasmanian drivers look for in comprehensive car insurance?
Comprehensive cover in Tasmania provides the broadest cover for many different scenarios, including damage to your vehicle from hail, storms, fire and theft. You may also have a choice of optional extras to add to your policy that may prove to be valuable.
Some of these car insurance options can include:
- Hire car. If your car is damaged in an event covered by your insurance, some car insurance policies will offer cover for a car replacement while you wait for your vehicle to be fixed.
- Roadside assistance. If you break down while driving, roadside assistance can send a recovery vehicle to help get you back on the road.
- Windscreen cover covers the repair of cracks and chips to your windscreen for low or no excess.
There are a number of factors car insurance providers take into account when calculating your car insurance quote. Here are just a few things that might affect the price of your policy:
- How long you’ve held your licence. Experienced drivers generally get the most competitive premiums.
- Where you live. Driving around the city is very different from driving in a rural area. Therefore, your premium will vary depending on your location.
- Your car. How much your car is worth, its age, make, model and overall kilometres are just a few things that can impact your premium.
- Where you store your car. Keeping your car in a garage or other secure area when parked can generally attract lower premiums.
- Driving and claims history. If you’ve got a claims-free driving history (or have been claims-free for a set number of years), you may pay a lower premium.
- How you use your vehicle. Whether you use your car for commuting or for business may have an impact on your insurance costs.
Important to know
What is a car insurance excess?
Excess is the amount you agree to pay for a successful insurance claim, which contributes towards your damage repair costs; your insurer then pays the remaining amount or up to the amount agreed to under your policy. However, with car insurance, you generally only have to pay an excess when you’re found to be responsible for an at-fault accident. It can also be applied if your claim doesn’t involve a third party or the insurer cannot recover damages from the responsible third party (e.g. hail damage or a collision with an animal).
Excess amounts vary depending on the policy and some providers even offer lower premiums if you agree to pay a higher excess. Conversely, paying a lower excess can lead to paying higher premiums. You may also find that depending on the circumstances of your claim, you might have to pay additional excesses (e.g. if the driver was under 25 years old).
Can I keep my no claim discount if I switch insurance providers?
Most providers will honour your no claim bonus or discount if you switch your car insurance; you may find, however, that not all insurers will share the same way of calculating this reward. However, these ratings are generally honoured across most insurance providers allowing you to maintain your safe driving level if you switch to another provider.
Will my car insurance change if I move house?
Your Tasmanian postcode might affect your car insurance premiums because your new neighbourhood may be rated differently based on insurance risk factors. For example, crime rates may be different in your new address or the likelihood of a crash in the area may have changed.
Where you park your car overnight in Tasmania also affects your premium. For example, if you previously parked in a garage but you’re now parking on the street, your premiums may rise to reflect the increased security risk.
Does car insurance in Tasmania cover towing?
Car insurance can cover towing if it’s listed in the PDS and will usually depend on the type of policy you have. For example, Third Party Fire and Theft insurance may cover towing after a theft or fire incident, whereas comprehensive car insurance can cover it for more scenarios. Keep in mind that tow cover is sometimes available only as an optional extra.
Will car insurance cover my caravan?
Some comprehensive car insurance policies provide cover for caravans and trailers, but this usually only applies when your car is towing the caravan.
Meet our car insurance expert, Adrian Taylor
As Executive General Manager of General Insurance at Compare the Market, Adrian Taylor is passionate about demystifying car insurance for consumers, so they have a better understanding of what they’re covered for. Adrian’s goal is to make more information available from more insurers, to make it easier to compare and save.