Car Insurance New South Wales

What Car Insurance do I need in NSW?

As in most states, NSW drivers need Compulsory Third Party insurance (or CTP), before they can register a vehicle. In NSW, CTP insurance is known as a Green Slip, and it can protect you from being financially liable if you injure yourself or someone else while driving.

What’s the difference between a Green Slip and CTP?

There’s not much of a difference, to be honest! A Green Slip is just what they call CTP in New South Wales. It gives your coverage if you’re responsible for an accident where someone is injured or killed. It’s also illegal to drive or register your car in NSW without a Green Slip.

Where can I get Green Slip insurance?

How you get a Green Slip in NSW is a little bit different than getting CTP in other states or territories. Instead of only having one, state-owned insurer to choose from, NSW drivers can get their Green Slip from a list of registered providers. You can also compare what’s on offer and purchase a Green Slip through the State Insurance Regulatory Authority’s Green Slip Price Check website. 

What does my Green Slip cover me for?

Just like CTP insurance in other states, you can think of your Green Slip as your “bare minimum insurance.” If you’re involved in an accident, your Green Slip insurance plan can cover anyone injured or killed, including:¹ 

• Yourself, plus any passengers in your car at the time; 
• Drivers or passengers in another vehicle; 
• Cyclists, pedestrians, motorcyclists, or anyone else on the road impacted by the accident

Helpful Tip: In New South Wales, every driver is required to have Green Slip insurance as the minimum requirement to register your vehicle. But just because additional cover isn’t mandatory doesn’t mean it isn’t worth considering. A Comprehensive policy could provide peace of mind from the knowledge that in the event of an accident, both third party damage costs and any damage to your vehicle could be covered. But if you’re not too fussed about having to foot the repair bill for your own car, a Third Party Property or Third Party Fire & Theft policy can provide cover if you damage someone else’s vehicle in an accident. Paul Maric, Managing Editor and co-founder of CarExpert.

What isn’t typically covered?

It’s important to keep in mind that if you’re in an accident, your Green Slip will not cover you for damage to your own or any other vehicle or any property. It also won’t cover your own vehicle if it’s damaged or stolen.

Do I need additional insurance in NSW?

A Green Slip can cover personal injuries that might arise in an accident. Many drivers in NSW also choose to purchase additional coverage, such as: 

• Third party property damage car insurance: This can cover damage to other people’s cars or property caused by you in an accident.
• Comprehensive car insurance: This is one of thehighest levels of car insurance you can get in NSW. It includes cover for your own vehicle for accident damage, fire and theft, and damage to other people’s cars or property. We’ve partnered with a range of insurance providers offering comprehensive car insurance. Use our Online Tool to compare and purchase comprehensive policies from our range of providers and policies*. 

How much does car insurance cost in NSW?

According to iSelect car insurance data for New South Wales and ACT, the below are the average comprehensive premiums for January - December 2022.:

Do I have to pay an excess in NSW?

Yes, most car insurance policies will come with some kind of excess, and New South Wales is no exception. 

For the uninitiated, an excess is the amount you’ll pay out-of-pocket when you make a claim. So if you make a claim for $1000 in car repairs and the excess on your policy is $100, you’ll need to put $100 towards the repair first before your insurer forks out the remaining $900. 

But wait—there is a bright side! Some insurers will lower your premium if you select a higher excess.² Even though it’s not an ideal arrangement for everybody, if you’re willing to pay a bit extra come claim time, then you’ll get to enjoy lower premiums. 

What’s driving in NSW like?

New South Wales is home to some of Australia’s busiest roadways, and all that traffic means collisions happen daily. Let’s take a look at some roadway statistics in NSW: 

• As of January 2022, there were over 4.4 million registered passenger vehicles on the road in NSW.³ There’s little doubt that people in the First State love their cars!
• Look out behind you—the most common type of collision in NSW is a rear-end, with over 2,200 rear-end collisions in 2021 alone.⁴
• Most collisions happen in Metropolitan NSW, but that’s not to say there aren’t any crashes regionally. In fact, there are consistently more off-path, out of control and head-on collisions in Regional NSW compared to Metro areas.⁵
• From 2017-2021, the city of Canterbury-Bankstown saw the highest number of people injured from car crashes. Unfortunately, Blacktown, Cumberland and the Central Coast have also seen thousands of victims.⁶
• On a happier note, it’s not all doom and gloom. The number of people injured on NSW roads has steadily decreased from 2012-2021.⁷ Fatalities are also slowly trending down.⁸ 

You might think you’d never be at fault in an accident, but the truth is that it can happen to anyone. Requiring drivers to have Green Slip insurance helps protect everyone on the road in NSW.

How do I choose a provider in NSW?

With so many providers to choose from, you’ll quickly find out that not all insurance policies are the same. Whether you’re looking for a Green Slip, or are shopping for more comprehensive coverage, we’ve put together these quick tips to help you get started: 

• Don’t settle for a raw deal: It may be easier to just renew your existing policy when your policy expires, but that won’t always get you the best deal. Instead, compare your current policy with others to see how it stacks up.
• Consider any discounts: Different insurers can offer different kinds of discounts. Some will provide a 'no-claims' bonus for every year you don't make a claim where you’re at fault. Others will offer a discount on your premiums if you apply online. It's all a matter of looking at different insurers and comparing their deals.
• Read the fine print: Be sure to read your policy documents or PDS in full or speak to a consultant about the product before committing to avoid any nasty surprises when you go to make a claim. For example, are you being charged a higher excess because your teenager is driving the car? Or, are you allowed to choose your own repairer?
• Tailor your policy: Some insurers will give you all kinds of options. They’ll let you restrict the age of the drivers on your policy and reduce your premium accordingly.⁹ Or they’ll cover the costs of windscreen repairs for a little bit extra. Be mindful of these options and you can build a policy that balances price and coverage in a way that you want.
• Look for value: Cheapest isn’t always best when it comes to car insurance. It’s often a good idea to weigh up the level of cover you’re getting against how much you’re paying. One way to do this is by comparing comprehensive policies from iSelect’s range of policies and providers to see which one suits you. 

What if I need help choosing a comprehensive car insurance plan?

There isn't a dedicated government website for comparing Comprehensive Car Insurance like there is with Green Slips. Instead, you can compare Third Party and Comprehensive Car Insurance with iSelect. Our car insurance comparison tool will let you compare policies from a range of providers*, so give it a try today or call us on 13 19 20 to chat with our friendly team!

^{Sources:
1 NSW Government | State Insurance Regulatory Authority - What is a Green Slip? 
2 Moneysmart - Car Insurance
3 Australian Government | Department of Infrastructure, Transport, Regional Development, Communication and the Arts - Motor Vehicles, Australia, January 2022, First Issue (Page 5) 
4 NSW Government | Centre for Road Safety - Crashes by Type and Region 
5 As Above. 
6 As Above. 
7 As Above. 
8 As Above.  
8 As Above.  
9 Budget Direct- Seniors Car Insurance} 

Endorsed by:
Paul Maric

Managing Editor and co-founder of CarExpert

Paul Maric is a highly acclaimed motoring journalist and the co-founder and managing editor of CarExpert.com.au. With over 15 years of experience in the automotive industry, Paul's knowledge is bolstered by a degree in mechanical engineering.

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