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Do You Need Car Insurance In Australia – New research from Finder [↗] highlights the most worrying trend on Australian roads: the rise in uninsured vehicles, driven by Australians deciding to cancel or downgrade their car insurance amid pressure on the cost of living.
The survey, which collected responses from 961 drivers, found that 16% of drivers have either canceled (5%) or reduced (11%) their car insurance in the past year to reduce costs.
Do You Need Car Insurance In Australia
With car insurance premiums increasing by an average of 10.6% last year and 19.8% since the start of 2021 – more than general inflation – many Australians have found themselves in financial distress. difficult.
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But before you ignore your car insurance renewal email, let’s check if it’s actually illegal to drive without insurance?
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Is it illegal to drive without insurance? Driving without Compulsory Third Party Liability (CTP) insurance is absolutely illegal in Australia.
This insurance covers liability for damage caused to others during an accident in which you are involved. It does not cover damage to property or other vehicles, nor your own injuries outside of third-party coverage.
Cheap Car Insurance Australia
Penalties for driving without OSAGO insurance can be serious, ranging from heavy fines to penalty points and, in extreme cases, imprisonment.
How can I take out OSAGO insurance? In most Australian states and territories, CTP insurance is included in the vehicle registration process. When you register a car or renew your registration, you pay for OSAGO insurance.
In some states, OSHA insurance is included in the registration fee, while in others you can choose an OSHA insurer, but you must provide proof of policy when registering the vehicle.
Known locally as Green Slip in New South Wales, CTP can be purchased from several private insurers. Car owners can compare and purchase Green Slips online, over the phone, or in some cases, in person. Once purchased, the insurer will notify Roads and Maritime Services NSW electronically, allowing the vehicle owner to proceed with registration or renewal.
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Queenslanders choose a CTP insurer during the vehicle registration process and some private insurers offer CTP insurance. The cost of the policy is included in the cost of vehicle registration. If you select, the insurer will be automatically informed and insurance cover will be linked to vehicle registration.
In South Australia, since July 2019, car owners have had the option to choose their CTP insurer when paying for their car registration through Service SA. The selected OSAGO insurance is then integrated into the vehicle registration.
The process is simplified in Victoria by including CTP insurance, called a motor vehicle accident fee, as well as vehicle registration fees. Insurance is provided by the Transport Accident Commission (TAC) and requires no separate action by the vehicle owner to obtain coverage (yes!).
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Tasmania offers CTP insurance through the Motor Accident Insurance Board (MAIB) as part of the vehicle registration process. Vehicle owners do not need to purchase a separate policy; it is automatically included in your registration or renewal fees.
Western Australia includes CTP insurance in the vehicle registration fee provided by the Insurance Commission of Western Australia (ICWA). When you register or renew your driving license with the Department of Transportation, CTP coverage is automatically activated.
In the ACT, vehicle owners can select a CTP insurer as part of the vehicle registration process with Access Canberra. This selection can be made online or in person and the selected insurer will notify Access Canberra electronically, linking the CTP insurance to the vehicle registration.
Interestingly, vehicles owned by the Commonwealth of Australia or the Australian Capital Territory are exempt from the requirement to have insurance. However, respective governments must process and settle claims within their own systems, much like an insurance company does.
Learner Driver Insurance
Finally, in the Northern Territory, CTP insurance is part of the vehicle registration fee and is provided by the Territorial Insurance Office (TIO). This coverage is automatically activated when you register or renew a vehicle through the Motor Vehicle Registry (MVR) and requires no further action by the vehicle owner.
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Although CTP insurance is a legal requirement throughout Australia, drivers have a choice when it comes to additional levels of cover for themselves or others in the event of an accident. When finances become scarce, it is these coverages that some question.
Comprehensive car insurance offers the most extensive coverage. Generally, it protects your vehicle against theft, fire, vandalism and weather-related damage.
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Additionally, it covers damage to other people’s property and accident-related expenses, including damage to your own vehicle. This type of insurance is considered the highest level of coverage available.
This insurance offers a happy medium between all-risk coverage and third-party coverage. It includes coverage for damage caused by your vehicle to other people’s property as well as for your vehicle if it is damaged by fire or theft.
This is a basic level of voluntary car insurance that covers costs if you damage someone else’s property, including their car, but not your own vehicle. This insurance can be crucial to cover the potentially high costs of damage to other vehicles or property if you are at fault in an accident.
Whether you’re over 25, driving your own car or sharing a family car, the starting point in Australia is the same: Compulsory Third Party Liability (CTP) insurance is a legal requirement for all drivers. If you drive the wheels yourself, you need your own OSHA policy to protect you from liability if you injure someone in an accident. However, you do not need your own OSAGO policy if you only drive the family car. In this case, you just need to convince your parents to add you to their policy as a listed driver. Just be aware that this may increase their premiums, as it is statistically riskier to insure young drivers, as CTP only covers injuries (not all cars or other property), higher levels of insurance are available. This is what we will discuss next.
How To Get The Best Car Insurance
Once the CTP requirement is met, additional insurance options come into play, all of which are optional. Like CTP, if you primarily drive a car owned by your parents, you can be added to their policy. However, if you own your own car and decide you need a higher level of cover, you will need your own insurance policy.
A third-party lien is the primary protection against someone else’s car or property. It doesn’t cover damage to your car, but it can save you expenses if you cause an accident that damages someone else’s vehicle or even a fence.
Beyond basic third-party property insurance, TPFT covers everything that third-party property insurance does, but with some protection for your vehicle. What does it protect your car from? You guessed it: fire and theft. This is a good option if you don’t want to apply for full cover but live in areas prone to bushfires or high crime.
Comprehensive car insurance is a comprehensive package that covers everything that third-party options do, but it also protects your own car against accidents, theft, fire and even the occasional natural disaster like hail or falling rain. trees. If you want to keep your car in tip-top shape or have invested a little in a set of wheels, this is the way to go. This is the most expensive option, but it offers the most comprehensive level of protection.
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All things being equal, car insurance for young drivers is generally above average because statistically, young drivers are more likely to cause accidents.
But experience also plays a role. So, for example, if you are under 25 and have P plates, you will be at the top of the premium scale. Foregoing those P plates for a full license may give you a slight cost offset, but you should still expect to pay more than a middle-aged adult.
Of course, not everything plays a role: the car you drive, where you live, your parking space and even your gender are taken into account.
So while we can’t give you an exact price, we’ve identified a few insurance policies that offer the best value for young drivers. Let’s see:
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Every year we organize the Experts Choice Awards, during which we identify insurers who consistently offer lower premiums than their competitors. For young drivers looking for cheap policies and manageable excess, here are our top picks from our 2023 awards:
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