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. That’s why you need car insurance that protects you for New South Wales’ unique requirements and road conditions. Here’s how to find the right policy.
What types of car insurance are available in NSW?
Generally speaking, there are four main types of car insurance in NSW. These include:
Compulsory third party (CTP)
Also called your ‘greenslip’, CTP insurance is mandatory insurance that covers the medical expenses if you cause an accident that injures or kills yourself, other drivers, passengers or pedestrians.
It also provides civil liability protection related to injury or death you cause to others, for example funeral expenses or loss of income the other party experiences.
CTP insurance does not provide cover for anyone’s property including your car, their car or any other property you damage.
Important CTP details for NSW
In NSW, all drivers must have CTP insurance before you can register your vehicle.
You can typically buy either a 12-month or 6-month green slip, and 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:
If you’re caught driving without CTP, you can face serious legal consequences and heavy fines.
For more information, here’s how CTP insurance differs in each Australian state and territory.
Third-party property and third-party fire and theft
This type of insurance is optional and can cover damage you cause to someone else’s vehicle or property - but not your vehicle, to any significant extent. These are typically cheaper than comprehensive car insurance policies.
Third-party fire and theft (TPFT) will cover your vehicle only if it’s stolen or catches on fire, but nothing else. Both may offer a token amount of coverage if your car is damaged by an uninsured driver, but that’s about all it will handle.
Check out our third-party insurance guide to learn more about the options available.
Comprehensive car insurance in NSW
Finally, comprehensive car insurance is the highest level of car insurance you can get. It covers everything the third-party policies cover, plus damages to your own car: including damages you cause, damages from uninsured drivers, theft, weather-related incidents and more.
To learn what it covers and what it doesn’t, it’s important to consult your policy’s product disclosure statement (PDS) which will outline everything in full detail.
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.
And feel free to use the table above to compare comprehensive car insurance in NSW.
How to find cheap car insurance in NSW
The steep inflation over the past few years has got many NSW drivers searching for cheaper policies. And no wonder: our 2024 Mozo Car Insurance Report found that NSW has the second-highest car insurance premiums in Australia on average, coming in at around $1,994 per year. The only state that was more expensive was Victoria at $2,139.
But while a cheap car insurance policy may save you a penny, 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.
Tips for saving money on car insurance
In the meantime, here are some strategies you can take to reduce the cost of car insurance:
Determine the type of coverage you need. CTP is definitely the cheapest option, but it’s extremely risky to rely on that alone. Imagine how much you’d have to fork out if you totalled someone’s Bentley! If your car isn’t worth much, it’s probably worth considering one of the third-party options. If you have a nicer car, then comprehensive insurance is the best way to protect it.
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, low-mileage 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. Some insurers will reward safe drivers with no-claims discounts, which can significantly cut the cost of your policy. But even if yours doesn’t offer this particular discount, safer drivers with clean claims histories will generally pay less, all else being equal.
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 of any policy you’re considering to get across what sub-limits and excesses you need to know with a specific policy. Our table above can also help in this regard.
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 popular policies found in our 2024 Mozo People’s Choice Awards.
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 be the most thrilling 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 bushfires, floods and hail.
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, and third-party 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 unique value to them.
How much does NSW car insurance cost?
In 2024, Mozo found that NSW drivers on average pay $1,994 per year on car insurance. 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.
