How does car insurance work in Australia?
Generally, Australian drivers have two types of car insurance. One is some form of Compulsory Third Party (CTP) Insurance, which covers costs related to injuries caused in motor vehicle accidents. In some states, CTP is bundled into car registration, in others, it needs to be purchased separately before a car can be registered. You’ll be able to find more details via your state’s traffic authority website.
The second type of insurance is some form of coverage for damage to other vehicles, other people’s property and maybe even your own vehicle. There are many types and levels of cover available, many with optional extras available on top of the standard cover, but in general terms they fall into one of two categories:
- Comprehensive car insurance, which covers damage to your own car as well as damage to other people’s vehicles and property.
- Third party property damage, which covers damage to other people’s vehicles and property if you’re liable for it, but usually won’t cover damage to your own car.