Car Insurance NSW
Car insurance requirements differ from region to region. This information is specific to New South Wales, and should not be applied to other regions.
Almost anything is easier and more fun than buying car insurance, but don’t make the mistake of making car insurance even more difficult to buy by not knowing what’s required for where you live. Here’s what you need to know for purchasing car insurance in New South Wales.
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Green Slips are Required by Law
Drivers in New South Wales are required to carry Compulsory Third Party (CTP) insurance, known in NSW as Green Slip insurance. There’s no way around it — you must have Green Slip insurance before you can register your car in NSW.
Compulsory Third Party insurance cover provides coverage and compensation for other people who are injured in an accident in which you or another person driving your car is at fault. In some (very limited) circumstances, CTP may give cover regardless of who was at fault.
CTP insurance covers injuries to passengers in your car, other drivers, their passengers, pedestrians, cyclists, motorcyclists and pillion passengers, injuries caused through the use of a trailer, and any children injured in a crash, regardless of who was responsible. However, Compulsory Third Party insurance does not cover damage to your property or others’ property or vehicles.
Getting Your Green Slip
You must obtain your CTP insurance coverage from one of seven insurers licensed to provide Green Slips in New South Wales. These insurers are:
Shop around; while all these insurers offer CTP insurance, there is no standard cost for green slip cover. The price you pay will depend upon factors that include your age, driving record, and the car you are insuring, so check with several, or with all insurers to make sure you’re getting the best rate possible.
Is Green Slip Enough?
Although CTP insurance cover alone will satisfy the requirements to register your car in New South Wales, strongly consider whether this is all the insurance that you need. Green Slip alone will not cover damage done to your car or to damage incurred to other vehicles or property when you are at fault in an accident. Paying for these damages out of your own pocket can be expensive.
Third party property cover will protect others’ property in the event that you cause damage to it as the result of an accident, but will not cover damage done to your own car. This insurance is therefore typically less suitable for motorists whose cars are of high replacement value, or expensive to repair.
Comprehensive car insurance usually covers both your car and others’ property. The amount that your car and property is covered for depends on what you select, so choose the car insurance cover amount carefully and consider whether it will pay to replace your car in the event it is a total loss due to an accident.
Third party fire and theft and uninsured motorist cover are also offered on a limited basis in NSW; check with insurers for details.
This article contains general advice about car insurance. The author has not taken into account your financial situation or needs and you should consider whether the advice provided is appropriate for your own circumstances before relying on it.
Filed Under: Car Insurance
