Types of car insurance in Tasmania
Here are the main types of car insurance available to drivers in Tasmania:Â
- Third party property damage insurance: Covers you if you damage someone else’s property in an accident. Your own car is not normally protected, unless the other driver is at fault and isn’t insured.
- Third party fire and theft insurance: Provides the same cover as third party property damage, with the additional benefit that your own car is covered if it's stolen or catches fire.
- Comprehensive car insurance: Provides the same cover as third party fire and theft, plus the cost of repairs or replacement of your car if it's stolen, or damaged by collision, fire, vandalism, or weather-related events.Â
What is CTP insurance?
In Hobart and the rest of Tasmania, all registered vehicles must have Compulsory Third Party (CTP) insurance, which financially protects anyone who is injured in a motor accident, regardless of who is at fault.
CTP is managed and sold exclusively by the Motor Accidents Insurance Board (MAIB) and is included in the cost of renewing or registering your vehicle via Service Tasmania.
What is the best car insurance in Tasmania?
There is no such thing as a ‘one-size-fits-all’ car insurance policy that’s ‘best’ across the board.Â
Often, ‘best’ isn’t the cheapest policy or the product with the most coverage. It’s the policy that best suits your needs and budget.Â
Every year, Canstar compares car insurance policies to help customers find those offering outstanding value.
Our Star Ratings and awards shine a spotlight on car insurers that deliver great value, reliable claims service, and compelling features.Â
Canstar's 2026 Car Insurance Award Winners include:
- Outstanding Value Award – National: AAMI, Bingle, ROLLiN’ Insurance
- Outstanding Value Award – TAS: ROLLiN’ Insurance
- Most Satisfied Customers Award – National: Bupa
Our awards are a helpful way to narrow your choice of insurer, but don’t forget to pay equal attention to their policies and what they actually offer.
Which car insurance features should drivers in Tasmania look for?
Tasmania’s wet, cold climate can make roads slippery and some areas prone to flooding. Drivers in Hobart and any other part of Tasmania may want to look out for the following:Â
- Roadside assistance: Helps to cover the cost of roadside servicing and towing if you're left stranded, be it because of a flat tyre, a dead engine, or a flat battery.Â
- Flood cover: Financially covers damage to your car (and possibly belongings inside) if it is water-damaged from a flood, such as the cost of replacement and towing.
- New-for-old replacement: Replaces your car with a brand-new similar model if yours is written off within the first few years or under a set number of kilometres.
- Rental car cover: Pays for a hire car while yours is being repaired or replaced after an accident.
- Emergency accommodation and transport: If you're more than 100 kilometres from home and your car is damaged in an insured event and cannot be driven, this benefit covers reasonable accommodation and travel costs while you sort things out.
- Windscreen repair: Fixes or replaces a damaged windscreen without having to pay an excess, which is the amount you agree to contribute when you submit a claim.Â
How much does car insurance cost in Tasmania?
The average yearly cost of comprehensive car insurance in Tasmania in 2026 is $2,014 according to Canstar Research.Â
Keep in mind that what you actually pay for car insurance in Tasmania will depend on:
- Your age: Younger drivers, especially under-25s, are deemed higher risk, meaning naming them in your policy may increase your premium.Â
- Your gender: Insurers rely on statistics in relation to gender, factoring them into the costs of premiums.
- Driving experience and record: A history of constant claims may result in higher premiums compared to a driver with a zero-claims history.
- Your address: If you live in a suburb with a higher crime or claims rate or higher exposure to natural hazards, expect your premiums to rise.
- The type of car you are looking to insure: Your car’s market value and its specifications, from how powerful your car’s engine is to its rarity, may influence the cost of your premiums.
- Where your car is normally parked: If you park your car in a secure area, like a garage, the risk of a break-in or car theft can drop. In turn, your insurer may lower your premium.
- How often and how far you drive it: The more time you spend on the road, the higher the likelihood of a claim, which could drive the cost of your premiums up. If you don’t drive all that often, a low-kilometre or ‘pay-as-you-drive’ policy may work out cheaper.
- Your nominated excess: Nominating a higher excess can lower your premiums, while a lower excess can increase your premiums.Â
Canstar Research data also suggests taking out an average 5-star rated policy in Tasmania over the market average on our database could result in an annual saving of $509.
How to find cheap car insurance in Tasmania
There are many ways to save on car insurance, some with a few trade-offs:Â
- Annual over monthly payments: Paying upfront for 12 months may bypass monthly surcharges.Â
- Review your policy regularly: If you haven’t found yourself claiming any benefits on your existing policy, you could downgrade your policy to a cheaper tier, provided you’re willing to accept less cover.Â
- Look for deals and discounts: Discounts could include a percentage or dollar amount off your first year's premium or multi-policy discounts (if you have multiple policies with the same provider).
- Add security devices: Installing an alarm or immobiliser, or parking your car in a locked garage, may reduce the risk of theft.
- Set an age restriction for drivers younger than 25: Insurers often deem younger drivers as inexperienced and at higher risk of submitting more claims. An age restriction removes that risk, which can reduce the cost of your policy.Â
- Nominate a higher excess: A higher excess generally equals a lower premium. However, if you’re involved in an accident and need to submit a claim, expect to pay more. Make sure you could afford the excess if you need to claim.Â
- Consider a low-kilometre or ‘pay-as-you-drive’ policy: If your car spends more time parked than on the road, these policies could help you save money. Be mindful that these policies are restricted to a set annual kilometre limit.Â
- Agreed vs market value: If you’re taking out comprehensive car insurance in Tasmania, your premium may vary depending on whether you choose market value or agreed value cover. The payout in the event of a total loss will depend on the option selected.
What to look for when comparing car insurance in TasmaniaÂ
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 charged
- 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
