GUIDES & RESOURCES

Car Insurance New South Wales

Whether you’re about to relocate to NSW, or just want to learn more about car insurance in your current state of residence, we’ve got you covered.
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Getting the green light

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?

Both Green Slips and CTP insurance can provide coverage if you’re responsible in an accident where someone is injured or killed. And just like CTP insurance, a Green Slip is mandatory - it’s illegal to drive or register your car without one.

So what’s the difference then? Unlike other states where CTP insurance is purchased from one state-owned insurer, NSW drivers can get their Green Slip from a list of providers. And with several providers to choose from, you can compare plans to find one that suits your needs and budget.

What does my Green Slip cover me for?

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

  • 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.

Author Paul Maric

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. Some drivers in NSW also choose to purchase additional coverage, such as:

  • Third party property damage car insurance: can cover damage to other people’s cars or property caused by you in an accident.
  • Comprehensive car insurance: generally, this is the highest level of insurance you can get in NSW. It can include 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 FY20:

 



What’s driving in NSW like?

The state 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 2017, there were over 2 million registered passenger vehicles on the road in NSW1
  • The most common type of collision in NSW is a rear-end, with over 3,200 rear-end collisions in 2018 alone2
  • Most collisions happen in Metropolitan NSW, but that’s not to say there aren’t crashes regionally. In fact, in 2018 there were 1,045 off-path or out of control collisions in Metropolitan NSW but 1,241 in the country2
  • Between 2015-16, there were 27 CTP claims for every 100,000 cars on the road2

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 multiple providers to choose from, you’ll find 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:

  • Review your policy regularly: 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: Depending on your age, driving record and claims history, you may qualify for a discount on your plan.
  • Read the fine print: Be sure to read your policy 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?
  • Look for value: Like other types of insurance, cheapest isn’t always best when it comes to your car insurance policy. Compare 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?

By now you know that getting a Green Slip is essential if you’re planning on registering your car in NSW. But if you’re looking for that extra level of coverage, iSelect can help you compare the comprehensive car insurance policies on offer from our range of providers and policies. Our car insurance comparison tool will do most of the work for you, or you can give us a call on 13 19 20 to chat with our team.

Sources:
1. https://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/9309.0Main+Features131%20Jan%202017?OpenDocument
2. https://roadsafety.transport.nsw.gov.au/statistics/interactivecrashstats/nsw.html?tabnsw=2

Last updated: 11/12/2020

Paul Maric

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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