Comparing car insurance in NSW? Australia’s most inhabited state certainly has a lot of drivers on the road, and a lot of rules to follow. Whether you’re winding your way through the scenic Blue Mountains, trundling along gravel roads toward Broken Hill, or zipping around suburban Sydney streets, every NSW driver wants to keep their car safe and sound.
Most of the car insurance providers in Mozo’s database offer policies to NSW drivers. On the one hand, you’re spoilt for choice when it comes to finding the perfect policy for your needs. On the other hand, so many choices can be overwhelming and make it hard to know which is the right fit.
Read on for what you need to know about car insurance in NSW. Ready to compare? Check out some NSW car insurance policy options in the table above.
What types of car insurance are available in NSW?
Generally speaking, there are three main types of car insurance in NSW. These include:
Compulsory third-party insurance (green slip insurance). This is mandatory insurance that provides coverage for personal injuries you give to the drivers in a motor vehicle accident. CTP insurance does not provide cover for your actual vehicle.
Third-party insurance. This type of insurance is optional and can cover damage caused to someone else’s vehicle. Check out our third-party insurance guide to learn more about the options available.
Comprehensive car insurance. Finally, comprehensive car insurance is the highest level of car insurance you can get. It covers damage you might do to someone else’s car and your own.
The right NSW car insurance policy for you will depend on your needs and financial situation.
Compulsory third-party insurance in NSW
In NSW, all drivers must have compulsory third-party (CTP) insurance, or a green slip, as a minimum level of car insurance before registering a vehicle. This policy covers your legal liability if you accidentally kill or injure another driver on the road.
A NSW driver caught driving an uninsured vehicle can face serious legal consequences and a $1200 fine.
You can typically buy either a 12-month or 6-month green slip. It should be renewed at least 21 days before the registration expiry date – a requirement unique to NSW.
The following are licensed CTP insurance providers in NSW:
Keep in mind CTP does not cover damage to your own vehicle, so if you’re looking for more thorough coverage to avoid a big bill from your mechanic, consider comparing comprehensive car insurance policies.
For more information, here’s how CTP insurance differs in each Australian state and territory.
Comprehensive car insurance in NSW
Comprehensive car insurance covers accidental damage to your car and the other driver’s car if you get into a motor vehicle accident. Coverage usually counts even if you are in an at-fault accident (so long as you were not doing anything illegal at the time, such as driving under the influence of drugs or alcohol). For policy exclusions, consult the product disclosure statement (PDS).
Plus, depending on your insurance provider, comprehensive car insurance will often also cover damage to personal items in your car or even rental vehicle. You can also tailor your comprehensive coverage with optional extras to suit your needs. These can include windscreen replacement, choice of repairer, and cover for hire car costs after an accident.
Finally, it should be noted that comprehensive car insurance is the most expensive type of insurance you can get for your wheels. However, it could save you a lot of money in the long run, should you ever find yourself making an unexpected trip to the mechanic.
You can use the table above to compare comprehensive car insurance in NSW.
How to find cheap car insurance in NSW
Rising car insurance premiums have got many NSW drivers searching for cheaper policies. And no wonder: in 2022, a Mozo insurance report found that NSW has the second-highest car insurance premiums in Australia on average, coming in at around $1,400 a year. The only state that was more expensive was Victoria ($1,463).
But while a cheap car insurance policy may save you a dime, it’s important to consider the advantages and disadvantages. The cheapest car insurance policy may not cover you adequately, and underinsurance can be expensive if you get into a car accident and have to pay for repairs yourself.
Insurance premiums will also vary wildly based on your risk profile as a driver. Younger, male drivers in the cities cop higher premiums than older, female drivers in the countryside, for example.
Instead, it’s more important to think about insurance in terms of value, not price. A good value car insurance policy will give you enough coverage at a price point that suits you.
You can compare award-winning great value car insurance policies in the latest Mozo Experts Choice Car Insurance Awards.
Otherwise, here are some strategies you can take to reduce the cost of car insurance.
Determine the type of coverage you need. If you’re happy just to skate by with Compulsory Third Party Insurance, that may be your cheapest option. Alternatively, you can look at comprehensive policies and compare which optional extras (if any) fit your needs and budget.
Compare rates from multiple insurance companies. No two car insurance providers will cover you the same way, so get as many free quotes as possible to get an idea of what value is available to you.
Check for any applicable discounts. Don’t drive as much? Have a good driving history? Happy to take out combined insurance? See if you can sign up for any discounts for your car insurance policy, such as an online discount, multi-policy discount, or loyalty discount.
Consider increasing your excess to lower premiums. By opting for a higher car insurance excess, you agree to take on more of the financial risk of every claim. This can lower your premium.
Maintain a clean driving record. Safer drivers often get rewarded with no-claims discounts, which can significantly cut the cost of your policy.
Take into account the make, model, and year of your car. Your car’s age, make, model, and even colour can all affect the likelihood of an accident, which affects your premium. See our car insurance report for more information.
Research insurance costs before buying a new car. Since a lot of your car insurance costs can be impacted by your specific vehicle, it’s good to research how much it could cost before settling on a set of wheels.
Regularly review your policy and coverage annually. Complacency with your car insurance will probably get you slapped with a loyalty tax. Don’t let your policy tick over – regularly compare your coverage and premium to ensure you’re getting the best deal.
What features should NSW drivers look for in car insurance?
Car insurance can come with a wide variety of coverage options to tailor your policy to your specific needs. While everyone is different, here are some items NSW drivers may want to look for when comparing car insurance policies.
Coverage options. You will need compulsory third-party insurance as a minimum, but if you want coverage for damage to your own vehicle, you may want to look at comprehensive car insurance policies.
Specific hazards for your area. If you’re in a part of NSW that often floods, it might be worth looking for car insurance that offers comprehensive flood protection. The same goes if there’s a high theft rate or if you live near bushland with a fire risk.
Reasonable limits and excesses. Read the PDS to get across what sub-limits and excesses you need to know with a specific policy.
Good customer service and easy claims process. How does the car insurance provider fare with customers? Read the reviews, or seek out award-winners, like the 2023 Mozo People’s Choice Awards car insurance recipients.
Competitive pricing and good discounts. Because car insurance premiums vary so much between providers and drivers, it’s a good idea to get a few quotes so you can see what’s available for your situation. And look for those discounts!
Clear and understandable policy terms and conditions. The PDS might not always be a good read, but plenty of car insurance companies go the extra mile to make this important document fun, engaging, and useful.
NSW is a vast and beautiful state, with many different roads, drivers, and hazards to insure. So what should NSW drivers prioritise in a policy? It depends, especially if you live in regional vs. metropolitan areas.
Regional NSW drivers face many unique risks on the road. For example, it may be worth looking for a policy that includes accommodation and transport costs if you have a motor accident in a remote location. Animal strike coverage may also be important if you’re likely to hit a kangaroo while driving at night.
Drivers in regional NSW may also want to investigate optional extras that cover natural disasters, such as:
Metropolitan NSW isn’t sheltered from natural disasters, but their frequency may not make coverage a necessity. Instead, NSW city drivers may want to look out for:
Good theft coverage.
Pay-as-you-go insurance, if you don’t drive that often.
Third-party damage insurance, since there are more cars on the roads in cities.
Young drivers in NSW may also want to check out policies that specifically offer value to them.
How much does NSW car insurance cost?
In 2022, Mozo found that NSW drivers on average pay $1400 every year on their car insurance policy. However, your car insurance premium can vary based on your:
Location. Drivers in cities may pay more for car insurance than country drivers.
Age. Older drivers tend to pay less for car insurance than younger drivers.
Driving history. Safer drivers pay lower car insurance premiums than dangerous ones who make multiple claims on their policy.
Vehicle type. Sporty or expensive vehicles can cost more to repair, but so can electric vehicles and recently new cars. Flash vehicles are also more likely to get stolen, so they cop higher car insurance premiums.
Level of coverage and excess. The more car insurance coverage you have, the more you will pay. A low insurance excess can also drive up your premium.
While some of these factors are out of your control, things like a clean driving record and investing in a sound, easily insured vehicle can all be good tactics for lowering the cost of car insurance.
How do I find the best car insurance in NSW?
When looking for Australia’s best car insurance, a good place to start is by checking out the winners in the Exceptional Value and Exceptional Quality categories in the latest Mozo Experts Choice Car Insurance Awards. Our experts analysed pricing and product data and determined that these policies offer some of the best price, range, and features in the market.
However, not all customers are looking for the same thing when it comes to car insurance, so it’s important to bear this in mind when comparing car insurance policies in NSW.
