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Car Insurance in Australia: What You Should Know

American Government Special Collections Reference Desk

Car Insurance in Australia: What You Should Know

Flynn McCoy
January 31, 2013


If you are thinking of buying a car in Australia, you must first make sure that you are completely aware of all of the regulations governing car insurance. If you are thinking about applying for a car loan, you will be required to have comprehensive car insurance. This comprehensive insurance will cover any damage to other vehicles, property, or injury in case of an accident and it will also cover any damage to your vehicle. Your lender can help you sort the insurance out, or you can purchase it on your own.

In addition to this, there are also a number of other laws and regulations governing auto insurance in Australia, and many of the regulations vary from state to state.

Basic Rules for Car Insurance in Australia

The rules for auto insurance in Australia vary by state, but nonetheless, it is compulsory in all states to have at least some form of third party or liability insurance which will cover any injuries that you may cause to another person while driving. Still, the exact type of compulsory insurance and how to purchase it varies by state.

Auto Insurance in Victoria, South Australia, and Western Australia

When you register a vehicle in these three states, you will get third party insurance included as part of the registration fees you must pay. You will not have a choice of insurer, as the insurance is provided by the Motor Accident Commission in South and Western Australia, and the Traffic Accident Commission in Victoria. This insurance covers both injuries and damage to other vehicles and property.

Auto Insurance in New South Wales and Australian Capital Territory

In New South Wales and Australian Capital Territory, you will first have to purchase third party insurance through one of the registered insurance companies before being allowed to register a vehicle and any vehicle without this insurance is considered illegal. This insurance only covers bodily injury to others.

Auto Insurance in Queensland

In Queensland, the insurance scheme is similar to that in Victoria, et al., except you will have a choice of which insurance company you wish to purchase from, although the price of the insurance is closely controlled by the government. Like in New South Wales, this insurance only covers injuries to others.

Additional, Optional Car Insurance Policies

While it is only required that you have some form of third party auto insurance to drive in Australia, you still have other options for more comprehensive insurance. Compulsory third party insurance only covers injury, while standard third party insurance also covers damage to others' property or vehicles. You can also get 3rd party fire and theft insurance, which will cover damage to others, but also a fire or theft of your vehicle. Still, you can also choose to buy comprehensive insurance which not only covers all of the above, but will also cover any damage to your vehicle resulting from an accident.


The author of this article is an expert in car insurance based in Australia. Visit his site for more information on Australian car insurance.



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