Car Insurance Tasmania

What types of Car Insurance are available in Tasmania?

For a small island, Tassie’s got a lot of cars, and thankfully, a range of Car Insurance choices. So, whether you’re just sticking to the one-way streets of Hobart’s CBD or regularly heading off road to the Apple Isle’s many stunning national parks, there will be a car insurance option for you.

That said, the Car Insurance selection available in Tasmania is broadly the same as the rest of Australia and broken up into four categories. Here they are, from the most basic to the most inclusive.

1. Compulsory Third Party (CPT) Insurance

Tasmanian drivers must be covered, at least, by CTP Insurance. As in every other state and territory, in Tassie this type of insurance is mandatory and included in your vehicle registration fees, although Taswegians are lucky enough to pay the lowest CTP premiums in Australia.^{1Motor Accidents Insurance Board – What is the MAIB?} In Tasmania, the cover is provided by the Motor Accidents Insurance Board (MAIB).^{2As above} CTP Insurance can help cover medical costs if someone is killed or injured by your driving. It does not cover any costs of vehicle repair.

Because CTP Insurance is mandatory, it doesn’t overlap with the other 3 insurance types. If you’d like more coverage and greater peace of mind, you can take out additional cover on top of your mandatory CTP.

2. Third Party Property Insurance

As the name suggests, Third Party Property Insurance helps cover other people’s vehicles and property if they are damaged by your vehicle and the accident was your fault. It doesn’t cover damage to your own car or property, though.

3. Third Party Fire and Theft Insurance

Third Party Fire and Theft Insurance still doesn’t cover your car in an accident where you’re at fault, but it helps cover damage to your car caused by fire or theft. It also covers third-party property damage, so this is another step up in cover.

4. Comprehensive Car Insurance

Okay, we’ve reached the top. Comprehensive Car Insurance helps cover other people’s property and vehicles as well as your property and vehicle, whether the incident is your fault or not. In some cases, it also covers hail or storm damage. A Comprehensive Policy often comes with options to add extras to your cover, like a hire car or roadside assistance.

Do I need Car Insurance in Tasmania if CTP is included in my registration?

If you’re covered by CTP Insurance in Tasmania and have an accident where you’re at fault and another person’s car or property is damaged, you’ll still be responsible for paying for the repairs or replacement of that car. And without Third Party Property or Comprehensive Car Insurance, this could be a pretty hefty amount. So, while they’re not mandatory, they could spare you some big expenses down the track.

Tasmania car crash statistics

It’s easy to feel safe on Tasmanian roads; after all, they seem relatively quiet. But quiet doesn’t necessarily mean safe. And as anyone who’s driven in Tassie can tell you, the roads can be treacherous. As of 2022, Tasmania had the second highest rate of fatal car crashes – per 100,000 people – in the country.^{3Department of Infrastructure, Transport, Regional Development and Communications – Road Trauma Australia 2022 Statistical Summary, p28} That’s definitely another reason to be extra careful on the road.

Tasmania car theft statistics

Good news! Tassie does better than most states when it comes to car thefts. In 2020–21, it had the third-lowest rate of car thefts per 1,000 registrations in Australia.^{4National Motor Vehicle Theft Reduction Council – Dashboard} Lonnie has the dubious honour of being the place in Tassie where your car is most likely to get nabbed:^{5As above}

What should I consider when looking for Car Insurance in Tasmania?

Let’s say you’ve decided that Comprehensive Car Insurance is just the kind of protection you need on Tasmania’s open roads (or in Launceston’s car parks!) Even then, it could be worth considering some optional extras but keep in mind these can increase how much you’ll pay on your premiums. Each provider offers different extras, but some common ones are listed below.

• No-Claims Discount: The No-Claims Discount is a discount some providers include which increases every year you don’t make a claim, up to a certain point. Exact figures vary, but it can be a good discount, so check with the provider.
• Towing following an accident: If you’re not covered, towing can be an unexpectedly high expense. You might want to check with your insurer whether towing is included or can be added to your policy and any associated limits.
• Agreed value: If you make an agreement with your insurer about the amount that your car will be insured for, you’ll know where you stand in the event of an accident resulting in damage beyond repair. The alternative is market value, where your payment would be assessed according to your car’s value on the market at the time of the claim.
• Hire car: If you rely on your car for work or personal reasons, you might want access to a hire car while your car gets repaired after an accident.
• Age restrictions for drivers: Some insurers will give you cheaper premiums if you restrict the age of drivers to over a given age, such as 25 or 30.
• Roadside assistance: Some policies will include the option of adding Roadside Assistance. It’s worth finding out how much assistance is included, whether there are additional costs and whether it will cover you if you’re far from home.
• New car replacement: If your car is deemed a total loss (that is, if the repair would cost more than the value of the car) and it’s within a certain age limit, some insurers offer to replace it with a new car of the same make and model.

How can I find the cheapest Car Insurance in Tasmania?

First, let’s establish that the cheapest Car Insurance Policy may not necessarily be the one that’s the best value for money. CTP is cheaper than Comprehensive Car Insurance, but it won’t cover you for as many things.
 
Generally, the cost of your Car Insurance will also depend on a variety of factors, such as your age, what model of car you drive and where you live. While you can’t control many of these factors, there are other actions you can take to reduce how much you’ll pay for Car Insurance:

• Install safety features: Some insurers offer lower premiums if you install certain safety features, such as alarms and immobilisers.^{6Budget Direct – How Much Does Car Insurance Cost?}
• Park your car in a safe place: Your insurer will typically look at where your car is usually parked when calculating a premium. If you keep it inside a garage, where it’s safer from the elements (as well as thieves!), your premiums may be less than if you keep it parked on the street.^{7pd.com.au – How Much Does Car Insurance Cost for a New Driver}
• Look for online discounts: Certain insurers can offer a discount on your insurance premium if you get a quote and purchase your policy online.^{8Virgin Money – Car Insurance}
• Compare policies: Not all policies are equal. By looking at what different policies offer – their level of cover, additional features and overall cost – you can get a good sense of which one is the best value for money for your priorities.

How can I find cheap Car Insurance in Tasmania?

Right, now that you’ve got some more information, you might be ready to get down to business and start comparing Car Insurance! Use our online service to compare from our range of providers* or call us on 13 19 20 to speak to one of our friendly team members. Then you’ll be ready to explore all that Tassie has to offer, from the Tarkine to the Bay of Fires. Enjoy!