Help! I'm a new driver and don't know anything about insurance

Car insurance with different automotive

Are you a new driver? You’re probably thinking about getting your new car and wondering about whether or not car insurance is something you should get. But, what if you don’t know anything about insurance? 

Car insurance may seem intimidating, but it can be straightforward when broken down. Here we have a quick guide to take you through the process and help you decide what car insurance you might need.

Do I have to get car insurance?

In Australia, it is mandatory in all states and territories to have compulsory third party insurance  (CTP). In essence, CTP (Also referred to as a “green slip” and motor accident injuries insurance) covers you in the event you cause injury, death, or damages.

Whilst this is compulsory to get, you may be wondering if you still need to get more insurance on top of that. 

What kinds of car insurance can I get?

While people talk about “car insurance” as one single thing, there are actually a variety of different types of car insurance to consider. On top of the mandatory CTP, the other kinds of car insurance you can choose from are:

  • Comprehensive car insurance: This type of car insurance usually covers a wider range of cover but this tends to be at the cost of a higher premium. Some areas that are covered by comprehensive car insurance are accidental damage, theft, and damage from flood, fire, or vandalism.
  • Third party property insurance: Generally, third party property insurance covers you when you cause damage to another person's property and/or cars when the accident is your fault. 
new drivers considering their car insurance

How much will my car insurance cost me?

The amount of money you pay for your insurance will vary based on a range of factors, including your age, experience, vehicle type and the frequency of your driving, among other things. Prices also vary between insurers, of course. 

There are two main costs to think about as you compare policies: premiums and excess. In short, the amount you pay each year for insurance is called a premium. Your premium will be determined by the insurer based on how likely it is that you’ll make a claim. In the event you have an accident and need to make a claim, you may also have to pay an excess amount, which is the amount you agree to put towards the cost of the overall claim (the formal request for reimbursement to cover the costs of an incident).  

These costs will be determined when you take out the policy, which is why it’s important to shop around and find a policy that works for you.

How to know what car insurance is best for you

It can be difficult to know which insurance you need or what your risk tolerance is. However, you never know when disaster will strike and it's handy to have in case of an emergency. 

That’s why at Mozo we’ve compiled a list of the best car insurance providers for you to choose from.

Car insurance comparisons on Mozo

Mozo may receive payment if you click to the website of one of the products below. Mozo does not compare the entire market, but you can see more products by clicking on the ‘See more’ button under the table.
Last updated 19 July 2024Advertiser disclosure
Important information on terms, conditions and sub-limits.
  • Comprehensive Car Insurance

    Monthly premiums
    Calendar icon
    Yes Costs Extra
    Choice of repairer
    tools icon
    Optional Extra
    Choice of excess
    coins icon
    $400 - $2,500
    Agreed or market value
    Car coin icon
    Agreed Or Market

    Available discounts

    • Comprehensive Car Insurance

      Monthly premiums
      Calendar icon
      Yes
      Choice of repairer
      tools icon
      No
      Choice of excess
      coins icon
      $800 Flat Excess Fee
      Agreed or market value
      Car coin icon
      Agreed Or Market

      Available discounts

        Details
      • Gold Comprehensive Car Insurance

        Monthly premiums
        Calendar icon
        Yes Costs Extra
        Choice of repairer
        tools icon
        Optional Extra
        Choice of excess
        coins icon
        $550 - $1,900 (varies By State)
        Agreed or market value
        Car coin icon
        Agreed Or Market

        Available discounts

        • No Claim Discount
        • Online Discount Up To 15%
        Details
      • Comprehensive Car Insurance

        Monthly premiums
        Calendar icon
        Yes Costs Extra
        Choice of repairer
        tools icon
        Optional Extra
        Choice of excess
        coins icon
        $500 - $2,200
        Agreed or market value
        Car coin icon
        Agreed Or Market

        Available discounts

        • Online Discount $75
        Details
      • Seniors Car Insurance

        Monthly premiums
        Calendar icon
        No
        Choice of repairer
        tools icon
        No
        Choice of excess
        coins icon
        $500 - $2,500 (varies By State)
        Agreed or market value
        Car coin icon
        Agreed

        Available discounts

        • Price Beat Offer Available For Eligible Drivers Over 50 Years Old Switching From A Comparable Policy With The Code ‘SENIORS’. T&Cs Apply.

      * Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.

      ^See information about the Mozo Experts Choice Car Insurance Awards