How Car Insurance Works in Each State

How Car Insurance Works in Each State

Auto insurance is an all too important safety net for any driver. Whether your ride is new or old, car insurance coverage is legally required in some cases, with some drivers buying additional policies to protect themselves and others on the road.

However, your requirements and options may vary depending on which state in Australia you register your vehicle in.

Green Slip Insurance


Compulsory Third-Party insurance, also known as CTP, is a legal requirement for any driver in Australia, as it is considered the bare minimum coverage for vehicle owners. CTP insurers and drivers alike may refer to this kind of auto insurance policy as green slip coverage. It is designed to cover anyone injured or killed in a car accident involving you and your automobile, protecting you from financial liability.

When shopping for car insurance NSW, drivers in New South Wales will have their choice of CTP insurance coverage from a variety of insurance companies. The same is true for drivers in Queensland, South Australia, and the Australian Capital Territory, where car owners can look into multiple CTP policies and pick the car insurance company that best suits them. In other states, there is one green slip underwriter through one insurer, so drivers are left with no choice. That coverage is generally included in the cost of registering a car.

Additional Coverage Options


While CTP coverage is legally required, many drivers across Australia have paid for additional coverage to have some extra peace of mind while behind the wheel. Comprehensive auto insurance coverage is usually the next step up, covering repairs to your vehicle and others, even if the accident is your fault. Comprehensive insurance also covers your automobile in the event of theft, fire, flood, or vandalism. This form of collision coverage is available through a multitude of insurance companies.

The same goes for both third-party property insurance and third-party fire and theft insurance. Third-party property coverage accounts for damage to other people’s property, including cars, when you are at fault in a covered claim. Fire and theft insurance covers damage to your property and your vehicle.

With a variety of auto policies, insurers may offer a variety of insurance premiums depending on what each policyholder can afford monthly to protect themselves and others on the road. Across the states, including Victoria and Western Australia, there are opportunities for discounts with just about every insurance company. It can be a safe driving discount for no claims on your auto insurance policy or age-related discounts for senior drivers. Some policyholders can opt to bundle other forms of insurance with certain companies that offer a multitude of coverage options.

Car Insurance Post-COVID


Just like everything else in our world, even driving has been impacted by COVID-19. With lockdowns linked to stopping the spread of the coronavirus, many Australians found themselves driving less. Insurance providers saw a significant decline in the number of claims out on the road but noticed a resurgence once restrictions were lifted.

In response to the unprecedented times, some insurance companies offered discounts on their car and home insurance policies as a form of COVID-related relief. Other insurers have opted for some form of a refund on insurance premiums, considering it a reward to drivers or homeowners for adhering to the lockdown protocols by staying home as much as possible.

Regardless of which state you live in, there are a variety of insurance policies to choose from, but the most important consideration to make is that your individual needs are met. While CTP coverage may be locked in for some parts of the country, be sure to do any necessary research to make sure you are getting the motor vehicle insurance you and your family need.

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