Compare car insurance for NSW

There are four main types of car insurance in NSW and Australia generally:

• Compulsory Third Party (CTP) insurance (also referred to as Green Slip insurance in NSW)
• Third Party Property Damage insurance
• Third Party Fire and Theft insurance
• Comprehensive insurance.

You may be able to save on your car insurance and find a cheaper policy by considering the following:

• Listing or restricting the drivers on your policy: Having younger, inexperienced drivers listed on your policy may lead to an increase in your overall premiums. On the other hand, your provider may offer you a better premium, if you remove or restrict young drivers from your policy. Some providers may also offer ‘Named Driver’ discounts for naming all of the potential drivers of your vehicle on your policy.
• Paying premiums annually: You may be offered a discount if you choose to pay your premiums annually rather than monthly or fortnightly. That being said, there may be some providers that offer for you to pay monthly at no extra cost.

• Securing your car: You may be offered a lower premium if you secure your car in a locked garage, particularly at night, rather than parking on the street.
• Driving safely: Safe drivers typically pay less in premiums than those who make claims often. Some providers may offer ‘no-claim’ discounts or bonuses for those who make claims infrequently.
• Online discounts and offers: Some providers offer deals and discounts for new car insurance policies taken out online, generally in the form of a percentage discount to your first year’s premium.
• Choosing a higher excess: Opting for a higher claim excess will generally mean receiving a lower premium in return. That being said, it’s important to consider if you would be able to pay the higher excess amount in the event that you needed to make a claim.

Your car insurance excess is the amount you contribute when making a claim. There may be policies that offer low or no excess in certain circumstances, but they will usually come with a higher associated premium.

You may also need to pay additional excesses in certain circumstances, such as if a claim resulted from a young or unlisted driver using your vehicle. This is why it can be worthwhile to name the potential drivers of your car on your insurance policy—some providers may offer you a ‘Named Driver Discount’ for doing so.

Canstar compares dozens of policies each year to find the ones that offer Aussie consumers the best value for money. We give the top-performing policies in each state a 5-Star Rating for a range of driver profiles.

When comparing policies, some of the factors worth looking at include:

• The premiums being charged
• The level of cover you are receiving
• Whether the risks most relevant to you are covered (e.g. if your area is prone to flooding, you may want your policy to cover this. If you live in a rural area in NSW, you may face different road risks to someone in an urban location.)
• The level of service on offer (e.g. the provider’s claims service)
• Any discounts or deals on offer
• Any extras, either complimentary or at any extra cost (e.g. roadside assistance or windscreen replacement with no excess).

NSW drivers pay the second highest average car insurance premiums in Australia, based on Canstar’s data on comprehensive policies considered in our 2024 Star Ratings and Awards. So given the high cost, it’s important that drivers make sure they compare their options and ensure they are getting good value for their money.

You can use Canstar’s comparison table above to compare car insurance policies and filter and sort products based on what features, discounts and cover options matter to you.

Car insurance features may come as standard in your policy or as add-on cover at an additional cost. Some features to consider are:

• Rental car cover: This provides cover if you are left without a working vehicle due to an insured event and may help to cover the cost of hiring a car while yours is being repaired or until you buy a new vehicle.
• Roadside assistance: This can help to cover the costs of roadside servicing and towing if your car breaks down.
• Windscreen replacement and repair: Some providers may offer excess-free windscreen repair or replacement if your windscreen becomes damaged.
• Choice of repairer: Some providers may offer you the choice of where your vehicle is repaired, rather than using one of their partner repairers.

Policies and their features may be subject to limits, sub-limits, exclusions and certain restrictions. To find more information on a policy that you are considering, you can read the Product Disclosure Statement (PDS) or contact the insurance provider directly.

Compulsory Third Party insurance—or Green Slip insurance as it’s known in NSW—is mandatory when registering a car in the state. This means that your legal liability will be covered if another driver or party is injured or dies as a result of an accident for which you’re responsible.

It’s important to note, though, that Green Slip only covers this legal liability, not damages to your vehicle or property or to another person’s vehicle or property. If you want more cover, you may consider taking out optional car insurance like third party or comprehensive insurance. While other types of car insurance are voluntary, they can potentially offer financial protection and peace of mind.

If you want to be covered for damage you might cause to another driver’s vehicle or property, you may consider taking out a Third Party Property Damage insurance policy. If you want the above cover, as well as cover for your own vehicle if it’s damaged by fire or stolen by thieves, you may be interested in a Third Party Fire and Theft insurance policy. If you’re interested in the highest form of coverage, comprehensive car insurance provides the same cover as Third Party Fire and Theft, but also covers your vehicle if it’s damaged in an accident, regardless of who is at fault.

Yes, the cost of car insurance premiums can vary depending on where you live. Insurance providers consider risk when calculating your premiums—this is why younger, less experienced drivers are more expensive to insure, and also why, if you live in an area that is known for having a high crime rate, the cost of car insurance may be more expensive.

Another factor that can make car insurance more expensive is the location where you park your car. If you park off-street, in a locked garage, then your premiums may be lower than if you park on the street—it’s important to be aware that insurance providers may ask you where you park when you take out a policy.

Car insurance premiums are generally influenced by the state or territory you reside in—including the specific suburb. If you move to a suburb that has a higher frequency of traffic accidents or vehicle theft or vandalism, your premiums may increase.

It’s important to inform your insurer when moving places of residence and update your information. If they discover that you’ve wilfully withheld information your policy may be voided and any claims made could be rejected.