What types of car insurance are available in NSW?
There are three main types of optional car insurance available in NSW. NSW is also the only state where vehicle owners need to arrange their own Compulsory Third Party (CTP) insurance. Here are the basics of each:
Third party property damageÂ
Third party property damage policies cover you for accidental damage to other people’s vehicles or property.
Third party fire and theft
Third party fire and theft insurance includes the same coverage as third party property damage and also covers your own car if it’s damaged by fire or stolen.
Comprehensive car insurance
Comprehensive car insurance offers the highest level of cover, but is also usually the most expensive form of optional car insurance. It covers damage to other people’s property, plus damage to your car caused by various events such as fire, floods, storms, theft, and car accidents.
Green Slip insurance
Green Slip insurance covers you if you injure or kill someone in an accident. If you’re a NSW resident you’ll need to arrange this form of insurance before your vehicle can be registered. The level of cover offered by a NSW CTP insurance policy is defined under the Motor Accident Injuries Act 2017 but, in some circumstances, the cover may be limited or excluded (like if the accident was the result of a serious driving offence). More details can be found in a policy’s Product Disclosure Statement (PDS).
What is the best car insurance in NSW?
There’s no one ‘best’ car insurance provider or policy in NSW. The best for you will depend on your coverage needs and personal circumstances. You can use the comparison table above to help find and filter comprehensive policies to suit your needs.
Looking at the winners of Canstar’s annual Car Insurance Awards could also be a good place to start. The awards recognise the providers offering outstanding value to customers nationally and by state.
Three providers topped the list nationally in Canstar’s 2026 Car Insurance Awards:Â
- Outstanding Value Award – Australia: AAMI, Bingle, and ROLLiN’ Insurance.
- Outstanding Value Award – NSW: ROLLiN'.
What to look for in a car insurance policy in NSW
Car insurance features may come as standard in your policy or as add-on cover at an additional cost. These features are usually offered by comprehensive policies, rather than third party ones. Some features to consider are:
- New for old car replacement: If you have a new car and it’s written off during the first few years of owning it, the insurer will replace it with a new one of the same or similar make and model.
- Rental or hire car cover: May help cover the cost of hiring a car while yours is being repaired or until you buy a new one if you’re left without a working vehicle due to an insured event.
- Emergency accommodation and transport: Covers the cost of emergency accommodation and transport if you have an accident far from home and your car can’t be driven.
- Roadside assistance: Can help cover some of 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 insurers may offer you the choice of who repairs your vehicle, rather than using one of their partner repairers.
- Key and lock replacement: May cover the replacement of keys if they’re lost or stolen, as well as the cost of recoding locks.
- Personal belongings: Covers the belongings in your car if they’re damaged or stolen in an insured event.
- Baby capsule and child seat replacement: Covers the replacement of baby capsules and child seats after an insured event.
- No-claim bonus protection: Can protect your no-claim bonus/discount after you make a claim in certain circumstances.
Policies and their features may be subject to limits, sub-limits, exclusions, and certain restrictions. Check the PDS for more information.
How much does car insurance cost in NSW?
The average annual premium for comprehensive car insurance in NSW is $2,792, according to Canstar Research. The cost you end up paying for a policy will depend on factors like:
- Your age, gender, and driving and claims history, as well as those of other listed drivers
- Your car’s make, model, and age
- The level of cover you take out
- Your excess amount (the amount you contribute when making a claim)
- Where you live, including where you park your car during the day and at night
- How often you drive your car and at what times of the day
- The provider you choose and whether they offer any discounts
Canstar Research also found that you could potentially save $801 by taking out the average 5-Star Rated policy compared to a market average policy on our database.
How does living in NSW affect your car insurance?
Insurers take into account where you live when determining your premium, including the state you reside in. If you live in an area with a higher crime or claims rate, you may pay more in premiums.Â
NSW residents also take out CTP insurance differently to the rest of Australia. You’ll need to arrange your own Green Slip or CTP policy before you’re able to register your vehicle. In the rest of Australia, CTP is generally included as part of registration.
How can I get cheap car insurance in NSW?
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 increase your premiums. Your insurer may offer you a better premium if you remove or restrict younger drivers. 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 pay your premium annually rather than monthly or fortnightly. There may be some providers that let you 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 don’t claim often.
- Driving less: Depending on how much you drive per year, you may be able to save with a discounted low-kilometre or pay as you drive policy.
- Insuring your vehicle for its market value: You’ll often be given the option to insure your vehicle for its market value (what it would sell for on the open market). This is usually the cheaper option compared to insuring your vehicle for a higher value agreed to by both you and your insurer.
- Online discounts and offers: Some providers offer deals and discounts for new policies taken out online, generally in the form of a percentage discount to your first year’s premium. If you have multiple insurances, you may be able to bundle them with the same provider to receive a multi-policy discount.
- Choosing a higher excess: Opting for a higher excess will generally mean receiving a lower premium in return. That being said, you’d need to be able to pay this higher excess amount if you needed to make a claim.
- Choosing your extras carefully: Your premiums will generally be more expensive if you add optional extras to your policy, such as windscreen cover, roadside assistance, and rental car cover.
- Shopping around: Due to inflation and operating costs, your premium can increase year-on-year, even if you stay with the same provider. Don’t just auto-renew your policy. Instead, compare your options and get quotes directly from both major and minor providers.
What should NSW drivers look for when comparing comprehensive car insurance quotes online?
When comparing policies, some of the factors worth looking at include:
- The premiums being charged
- The level of cover you’re 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 an extra cost, like 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 2026 Star Ratings and Awards. So given the high cost, it’s important to compare your options and ensure you’re getting good value for your money.
You can use Canstar’s comparison table above to compare comprehensive car insurance policies from our Online Partners and filter and sort products based on what features, discounts, and cover options matter to you.
