Compare car insurance in Tasmania

Is car insurance compulsory in Tasmania?

Yes, like all other states and territories in Australia, you’ll need some level of car insurance to drive in Tasmania. 

You cannot legally drive in TAS without compulsory third party (CTP) insurance, which is overseen by the Motor Accidents Insurance Board (MAIB). CTP insurance in Tassie provides cover for ‘no fault’ accidents, meaning you can claim compensation regardless of who is responsible. 

This level of insurance doesn’t cover any damage caused to your car or others’. Instead it’s there to compensate you for reasonable medical, ambulance and hospital costs, rehabilitation expenses, income loss, long term care for serious injuries and disability allowance.

As on the mainland, other levels of car insurance in Tasmania are elective. However, it’s advisable to have at least a basic level of voluntary cover in case you cause an accident, as otherwise you may be left with a massive repair bill for any damages you cause to your own car and others.

The most basic level within this is third party property damage car insurance, which covers you for repair or replacement costs if you cause damage to other people’s vehicles or property. Every policy differs slightly, but there are generally dollar limits on what your insurance company will pay out. And remember: third party property insurance does not cover your own car in any way.

If you live in an area with a high crime rate or park your car on a dangerous street, you might consider bumping up your third party cover to include fire and theft car insurance. This will cost a little extra, but is a useful safeguard for your car if it’s in a riskier environment.

Comprehensive car insurance is the highest level of cover you can take out in TAS. As a base, it covers repair or replacement costs for your own and other vehicles should you cause an accident. Depending on your provider and policy, it can also include cover for additional costs that crop up around road accidents like towing, emergency accommodation, travel and hire car costs.

How much does car insurance cost in Tasmania?

You pay CTP through MAIB as part of your annual vehicle registration in TAS, so this cost will be determined by the kind of vehicle you drive. 

When it comes to elective coverage, a higher level of cover means a higher premium, so a comprehensive policy will cost more than third party car insurance. Just remember, if you cause a costly accident or own a reasonably new or valuable car, paying a little more each year on your premium for additional cover could save you money down the road.

Regardless of the type of car insurance you choose, there are a range of demographic and behavioural factors which can impact your car insurance cost. Insurance companies will use statistics to calculate how much of a risk you are on paper, and provide a car insurance quote which mitigates high risk with a higher premium. Some of the factors they go off include:

• Your age & gender. Based on road accidents and the cost of insurance claims, younger or more inexperienced drivers are a higher risk and female drivers are statistically safer.
• The make, model, value, age, and even the colour of your vehicle. Newer, more expensive cars cost more to cover, and there are some statistics around different coloured vehicles being more likely to be stolen or involved in insurance claims.
• Where you live and whether your car is garaged. If your car is on the street in a dangerous neighbourhood, expect a premium bump.
• Your driving habits and history. On the bright side, some insurance providers offer cheaper premiums for Tasmanians who don’t use their cars often. But flip the coin to someone who drives a lot or has black marks on their driving record, and you’ll find a more expensive premium.

What is covered by comprehensive car insurance in Tasmania?

Every car insurance provider will offer slightly different benefits, which will then be affected by the kind of driver you are and the kind of vehicle you drive. With that in mind, there are some things you can generally expect to see on your comprehensive car insurance policy. This includes coverage for:

• Damage to another driver’s car when you cause an accident
• Damage to your car in an accident
• Other accidental damage (like reversing into a retaining wall)
• Fire damage 
• Theft and attempted theft of your car
• Vandalism and malicious damage
• Emergency repairs
• Towing costs in an emergency
• Travel and accommodation costs if you’re a certain distance from home after an incident
• Damage to personal property in your car.

Are there any optional extras I should have when driving in TAS?

Some car insurance policies will include certain features as standard, which in other policies only come as optional extras. Generally speaking, the more feature-rich your policy is the more expensive it will be whether you include things optionally or if they’re offered from the get-go. Some features to consider which may only be offered as optional extras include:

• Excess-free windscreen cover. This is great if you live on a large Tassie block and might need semi-regular windscreen repairs from driving on unsealed roads.
• Rental car after accident. You’ll often find this is included after a theft as standard, but not after road accidents, particularly if you’re responsible for a crash.
• Modifications. Many providers will be happy to insure your cool vehicle upgrades, you’ll just have to let them assess it and set a price for coverage before taking out a policy.
• Choice of repairer: Being able to choose your own repairer is a good option if you have a trusted mechanic or panel beater in mind and want them to see to all repairs.
• 24-hour roadside assistance. If you’re concerned about getting stuck in between Tassie townships, roadside assistance can get you out of a bind. This is usually sold as a separate product to most insurance policies.
• No claims bonus protection. This is a veil of protection added onto your clean driving record which has earned you a discount on your premium. It’ll keep the no claims discount intact if you make a claim in some scenarios.

How does car theft and accidents affect insurance in TAS?

As mentioned, your cover can be affected by where you live, drive and park your car, as different areas have different levels of crime rates and road incidents, and therefore come with higher risk. So it’s important to have an idea of what that risk is in your state and local area. 

TAS road accident statistics

Serious injuries and fatalities on Tasmanian roads were slightly higher in 2020 than the running ten-year average, according to Tasmania Transport Services. There were 284 people who were seriously hurt and 36 lives lost.

A report from the Department of State Growth found two-thirds of serious casualties were caused by vehicles veering off the roadway or into oncoming traffic, resulting in head-on or other kinds of collisions.^ It also found a lack of attention while driving and experience as a driver were the two leading causes of casualties, closely followed by inappropriate speed. 

Tasmania road weather dangers

Tassie is home to some of Australia’s coldest towns, which brings a very dangerous element to the driving equation:black ice. With temperatures dropping as low as -14 degrees Celsius, black ice (a thin coating of transparent ice) is a much more common threat in some areas. 

Be sure to watch out for weather warnings and avoid driving when black ice is prevalent, especially on roads prone to it like the Huon Highway and the Southern Outlet. 

Car theft in Tasmania

Of the 1,067 vehicles reported stolen in Tasmania during the calendar year of 2019-2020, around 75% have been recovered, according to the National Motor Vehicle Theft Reduction Council. Major cities were at the top of the leaderboard, with thefts in Launceston, Glenorchy, Hobart and Clarence (in that order) accounting for well over half of these instances.

Insuring your car for theft, fire and malicious damage can be a good way to mitigate the risk of living and parking in these areas. This is generally covered in a comprehensive car insurance policy, or can be added onto third party car insurance. Also consider parking your car on your property or in a garage to reduce the likelihood of theft or vandalism – you may even reduce your car insurance premium in the process.

What's the best car insurance in Tasmania? 

When looking for a new policy, most people want to find the best car insurance in Australia to cover their rides. So, a great 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 for 2023.

The Mozo experts analysed over 10,000 car insurance quotes to find the best value policies for the widest range of customers. Check out the methodology report for more information. 

However, not all policies are one-size-fits-all, so it’s important to bear this in mind when comparing car insurance policies in Tasmania.