What types of car insurance are available in the ACT?
These are the optional types of car insurance available in Canberra and the ACT (from cheapest to most expensive):
- Third party property damage: Covers you if your car damages someone else’s property, such as their car or home. It does not cover damage to your own car when you’re at fault for the accident. Limited cover may be possible if the other party is at fault and uninsured.
- Third party fire and theft: Similar to third party property damage, but also covers your car if it's damaged by fire, broken into, or stolen.
- Comprehensive car insurance: Provides extensive cover for loss or damage to your vehicle, and damage to other people’s property during an accident (e.g., their car, home), regardless of who’s at fault. It can also include cover for loss or damage due to an accident, severe weather, fire, vandalism, and theft.
What is the best car insurance in the ACT?
There’s no such thing as one ‘best’ car insurance policy in Canberra or the ACT. Because everyone’s financial situation is different, the best car insurance policy for you may not be the best option for the next person.
Depending on the driver, ‘best’ could also equate to the cheapest policy, regardless of the level of cover, or the policy with the largest range of coverage, regardless of price.
It’s important to compare car insurance options before signing up for a policy, so you can be confident you’re getting the best possible deal for your circumstances.
Canstar compares car insurance policies to help you find one that works for your budget and needs. Our Outstanding Value Awards highlight insurers that offer outstanding value across price and features, while our Most Satisfied Customers Awards is based on the real-world experiences of everyday Australians.
Canstar's 2026 Car Insurance Award Winners include:
- Outstanding Value Award – National: AAMI, Bingle, ROLLiN’ Insurance
- Most Satisfied Customers Award – National: Bupa
These awards are a handy guide to compare your options, but it’s important to consider what an insurer’s policies offer and if they best fit your situation, on top of the accolades they’ve won.
What Compulsory Third Party (CTP) insurance do I need in the ACT?
In Australia, car owners must have Compulsory Third Party (CTP) insurance, covering them if they injure somebody in a road accident. Canberra and the ACT use Motor Accident Injuries (MAI) insurance and the Lifetime Care and Support Scheme (LTCS). They are compulsory purchases when registering your vehicle. Here’s what they cover:
- MAI insurance: Covers people injured in a motor accident, regardless of who is at fault. The cost of MAI varies with vehicle classes and their intended use (commercial or private).
- LTCS: Covers people who are catastrophically injured in a road accident, regardless of who is at fault.
However, they don’t cover damage to property belonging to you or others in an accident. It’s worth considering optional car insurance, such as comprehensive, third party fire and theft, or third party property damage.
Which car insurance features should ACT drivers look for?
Features worth considering might include:
- New for old car replacement: Replaces your car with the same or a similar make and model if your previous car is written off in the first few years of ownership or before it's been driven a set number of kilometres.
- Rental or hire car cover: Covers the cost of renting a car if your car is awaiting replacement or repairs at a workshop after an insured event.
- Emergency accommodation and transport: Covers the cost of accommodation and travel if the location of the accident is far from home and your vehicle is not in driving order.
- Windscreen replacement and repair: Some insurers offer excess-free repair if your windscreen is damaged or shattered in an insured event.
- Personal belongings: Covers property in your car if it’s damaged or stolen in an insured event.
- Flood cover: Covers your car if your car is water-damaged from a flood, such as the cost of replacement and towing.
- Roadside assistance: May partially cover the costs of roadside servicing and towing if your car breaks down, be it because of a flat battery or a dead engine.
Keep in mind that these features may be available as inclusions or as extras for an additional cost. These features are also typically offered on comprehensive rather than third party policies.
Policies and their features may also be subject to limits, sub-limits, exclusions, and certain restrictions. Check the PDS for more information.
How much does car insurance cost in the ACT?
The average annual premium for comprehensive car insurance in Australia is $2,460 in 2026, according to Canstar Research.
The actual price you’ll pay for car insurance in the ACT varies with a range of factors, including:
- Your age: Insurers broadly view younger drivers as inexperienced and more likely to make a claim, which raises their premiums.
- Your gender: Insurers use accident statistics based on gender to set the cost of premiums.
- Driving experience and record: If you have a history of frequently submitting claims, your premiums are likely to be higher than with a no-claims history.
- Your address: If you live in an area with higher crime and claims rates, your premiums are likely to rise.
- The type of car you are looking to insure: Your car’s market value and its specifications will affect how your insurer calculates your premiums. For example, a luxury car with rare parts will be harder to replace, which could drive the cost of your insurance up.
- Where your car is normally parked: A car parked on the street may attract a higher premium than one kept in a secure location.
- How often and how far you drive it: The more kilometres you clock on your car, the higher the risk of a claim, which could increase the cost of your premiums. If you don’t find yourself driving on the road frequently, you could consider taking out a low-kilometre or ‘pay-as-you-drive’ policy to save money.
- Your nominated excess: An excess is the amount you agree to pay when you make a claim. Opting for a higher excess lowers your premiums, while a lower excess increases your premiums.
How to find cheap car insurance in the ACT
The simplest way to find cheap car insurance in Canberra and the ACT is to shop around for quotes from different insurers, focusing on the level of cover that’s appropriate for your situation.
If you already hold car insurance cover, start by looking at policies offering a similar level of cover, making sure you save without having to downgrade any features.
You can also save on car insurance premiums through:
- Paying yearly instead of monthly to bypass monthly surcharges
- Parking your car in a secure area.
- Excluding younger drivers (like those under 25) from your policy.
- Increasing your excess to lower your premium. However, you run the risk of paying more if you need to make a claim.
What to look for when comparing ACT car insurance
The right car insurance policy and features will vary from person to person. When comparing car insurance policies online, it’s a good idea to keep the following factors in mind:
- The premiums being quoted
- The level of cover you receive
- Whether the risks most relevant to you are being covered by the policy (for example, if your area is prone to flooding, you may want that covered in your policy)
- The insurer’s level of customer service, such as dealing with enquiries, processing, and paying out claims
- Any discounts offered by the insurer.
