It is illegal to drive any car in Australia, new or used, without compulsory third party insurance.
The only time you can possibly legally drive an uninsured car is when you have to get the vehicle registered.
You should drive straight to an inspection station or your state's nearest vehicle registry office. You must ensure that you take the most direct or convenient route possible. In most states, you’re required to have your CTP insurance completed and paid for before you drive the car off the dealership’s lot.
Compulsory third party (CTP) insurance is mandatory for anyone who wants to register a vehicle in Australia.
If you’re responsible for a car accident, your CTP insurance will be used to pay any compensation if anyone is injured or killed. If another party causes the accident, their CTP insurance will compensate any victims.
It’s important to note that CTP insurance does not cover vehicle damage or theft - that requires separate insurance.
Although CTP insurance is compulsory throughout Australia, conditions vary from state to state. Follow the links below to find out more information regarding your state’s CTP scheme:
Your compulsory third party insurance (CTP or green slip) isn’t valid until your car is registered.
Driving an unregistered or uninsured vehicle can have severe legal repercussions. If you are involved in an accident, and are driving an unregistered or uninsured vehicle, you will be personally liable to pay compensation to anyone hurt, as well as damages.
If you are caught driving a vehicle without insurance you may be fined, have your licence revoked for a set period of time, or potentially have your vehicle seized.
Disclaimer
This article is over two years old, last updated on December 5, 2022. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent car insurance articles.
It's safe to say that in Australia, if your car is registered, it is insured. This is because it is a legal requirement to have your car insured before it’s registered. In most states and territories, CTP insurance is included as part of your registration. However, in NSW paying for your insurance policy is an extra step you must take before registration.
To check whether your car is currently registered, and to check who your insurance provider is, visit your state or territory's car registration and licensing authority's website.
CTP insurance is just one of the costs associated with car ownership.
A comprehensive car insurance policy is the most exhaustive and often the most expensive type of insurance. It covers injuries and damages to both you and other persons involved in an accident if you are at fault.
Damage to your car from extreme weather events including floods, storms, and bushfires is also covered, similar to how home insurance can protect homes from similar disasters.
In addition to preset insurance policies, many providers will also offer add-on coverage for a number of other incidents. For example, insurance with roadside assistance can be helpful in the event you need a jump start, tire replacement or towing.
Another potential cost when buying a new vehicle are car loan repayments. You can use RateCity’s car loan calculator to find out your borrowing capacity.
