Compare car insurance for NSW

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

• Compulsory Third Party (CTP) insurance
• Third party property damage insurance
• Third party fire and theft insurance
• Comprehensive insurance

The cost of comprehensive car insurance will depend on various factors, including your level of cover and excess, age, gender, driving experience and the car you are insuring. That said, to give you an idea of how much you might expect to pay, Canstar Research crunched the numbers across a range of age groups to determine the average cost of car insurance in NSW:

• Under 25 female: $2,799
• Under 25 male: $3,126
• Age 25 – 29: $2,231
• Age 30 – 49: $1,671
• Age 50+: $1,277
• Family with young driver: $2,793

Source: www.canstar.com.au – 15/06/2023. Based on comprehensive car insurance policies rated in Canstar’s 2023 Car Insurance Star Ratings. Premiums include quotes for both new and used cars for a range of scenarios, with a state-specific target excess ranging from $600 to $750

Younger drivers tend to pay more for car insurance because they are statistically more likely to get into an accident and make a claim. For example, according to Transport for NSW, crashes that involve younger drivers (under 26 years old) account for almost a quarter of annual road fatalities, despite the group making up only about 15% of all licence holders.

Car insurance premiums can vary depending on the insurer, so it can be worth shopping around and getting a number of quotes.

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 getting
• 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 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 highest average car insurance premiums in Australia, based on Canstar’s data on comprehensive policies considered in our 2022 Star Ratings. So given the high cost, it’s important that drivers make sure they compare their options and ensure they are getting good value.

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

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 no matter what, you will have cover for legal liability 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 cover only covers legal liability for injury or death of other parties, not their vehicles or yours, so if you want more cover, you may need to consider taking out insurance. While other types of car insurance are voluntary, they can save you a financial headache.

If you want to be covered for damage you might cause to another driver’s vehicle in an accident, then you may consider taking out third party property damage insurance, and if you also want protection for your own car, you could consider third party fire and theft cover, or comprehensive cover, which has the broadest scope of coverage.

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 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 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.