Key takeaways
- CTP is compulsory in every state — it only covers injury to others, not vehicle damage.
- For cars worth more than $10,000, comprehensive cover is usually worth the modest extra premium.
- Compare at renewal with identical excess and inclusions — loyalty rarely gets you the best price.
Every registered vehicle in Australia must carry Compulsory Third Party (CTP) insurance. Beyond that legal minimum, you choose how much financial protection you want if something goes wrong on the road. This guide explains the four cover levels, how CTP works in your state, and how to compare policies fairly.
On this page
The four levels of car insurance
Australian drivers can choose from four levels of cover. CTP is mandatory and bundled into registration in most states (purchased separately as a Green Slip in NSW). The three optional private products fill different gaps.
- CTP — covers personal injury claims for people you harm in an accident you cause
- Third-party property damage (TPPD) — covers repair costs for other people's vehicles and property
- Third-party fire and theft (TPFT) — adds theft and fire protection for your own car
- Comprehensive — covers your vehicle for collision, hail, flood, vandalism, and more
| What's covered | CTP | TPPD | TPFT | Comprehensive |
|---|---|---|---|---|
| Injury to others (CTP) | ||||
| Damage to other vehicles/property | ||||
| Theft of your car | ||||
| Fire damage to your car | ||||
| Collision damage to your car | ||||
| Storm, hail, flood, vandalism | ||||
| Uninsured driver (varies by policy) | Sometimes | Sometimes |
CTP is compulsory. Other cover levels are optional. Always check the Product Disclosure Statement (PDS) for your policy.
How CTP works in your state
CTP is the only cover type that varies by state and territory. The product name, regulator, and whether you choose your own insurer all depend on where your vehicle is registered.
| State/Territory | CTP product name | How it works |
|---|---|---|
| NSW | Green SlipState Insurance Regulatory Authority (SIRA) | Purchased separately before registration |
| VIC | TAC chargeTransport Accident Commission (TAC) | Included in registration |
| QLD | CTP insuranceMotor Accident Insurance Commission (MAIC) | Choose insurer at registration |
| WA | Motor injury insuranceInsurance Commission of WA (ICWA) | Included in registration |
| SA | CTP insuranceCTP Insurance Regulator (ctp.sa.gov.au) | Choose insurer at registration |
| TAS | MAIB premiumMotor Accidents Insurance Board (MAIB) | Included in registration |
| ACT | CTP insuranceAccess Canberra | Choose insurer at registration |
| NT | MACT premiumMotor Accidents Compensation Commission | Included in registration |
CTP covers personal injury to others — not vehicle or property damage. Injury benefits for you vary by state (e.g. SA Lifetime Support Scheme for very serious injuries). Check your local regulator.
What drives your premium
Insurers price your policy based on how likely you are to claim and how expensive those claims tend to be. Your postcode, vehicle make and model, driver age, annual kilometres, and claims history all play a role. A higher voluntary excess usually lowers the annual premium but increases your out-of-pocket cost when you claim — actual savings vary by driver, vehicle, and state.
How to compare car insurance fairly
The fairest comparison uses identical inputs: same vehicle details, excess, agreed or market value, and optional covers. Read the Product Disclosure Statement (PDS) for exclusions around modifications, rideshare use, and storm or flood sub-limits.
- Match excess levels across quotes — a $500 difference in excess can skew premiums by hundreds of dollars
- Check agreed value vs market value — agreed value costs more but removes payout uncertainty
- Compare optional extras you actually need, not a bundled package you won't use
- Review at every renewal — insurers often price new customers more competitively
Tip
Bottom line
For most drivers with a vehicle worth more than $10,000, comprehensive cover offers the best balance of protection and cost. If you can replace your car out of pocket after a write-off, TPPD or TPFT may be enough. Whatever you choose, compare with the same excess and inclusions rather than headline price alone.
General information only — not personal financial advice. Consider your own circumstances and read the Product Disclosure Statement (PDS) before purchasing any policy. Moneyhero may earn referral fees from some providers when you switch through us; this does not change how results are ordered. How we compare
Frequently asked questions
Common questions about car insurance in Australia — cover levels, costs, and how to get the right policy.
What is compulsory car insurance in Australia?
Compulsory Third Party (CTP) insurance is mandatory for every registered vehicle. It covers personal injury claims for people you harm in an accident you cause. It does not cover vehicle or property damage — that requires optional private cover.
How do I compare car insurance fairly?
Use identical vehicle details, excess, valuation type (agreed or market), and optional covers across quotes. Read the PDS for exclusions and compare estimated annual cost, not just the headline premium.
When should I review my car insurance?
At every renewal — insurers often price new customers more competitively than loyal renewals. Set a reminder before your policy end date to compare alternatives.
Does Moneyhero influence which insurers appear first?
We earn referral fees from some providers when you switch through us. This does not change how comparison results are ordered. See our How we compare page for full details.