Australian Auto Insurance 101

The Australian auto insurance market places a number of demands on road users. Insurance legislation is very similar to that implemented in the UK. Australian drivers have four different types of auto insurance to choose from and these must be purchased on a mandatory basis. Failure to do so can result in fixed financial penalties and the loss of driving privileges.

Comprehensive Cover

Comprehensive cover is the most detailed form of Australian auto insurance. As well as covering liabilities to third-party drivers, comprehensive auto insurance will also cover the cost of repairs to your own vehicle and your property. On the majority of policies, a comprehensive plan will cover the costs of transportation and emergency roadside assistance in an accident situation.

Third Party Fire and Theft Cover

A third party fire and theft auto insurance policy not only covers financial liabilities to other road users, but it will also pay for the cost of repairs or replacements in any situation where your own vehicle is compromised by fire or by being stolen.

Third Party Property Cover

A basic third party property policy is the next level of auto insurance available in Australia. This type of auto insurance will only cover your liabilities to other motorists. However, most third party property policies will include a provision for legal fees and limited damage caused to your own vehicle by uninsured motorists.

Compulsory Third Party Insurance

Also recognized as ‘green slip’ auto insurance, a compulsory third party insurance policy only covers your liabilities to third-party drivers and will not incorporate any other costs that may be incurred in the event of a road traffic accident. This is the lowest form of compulsory auto insurance available in Australia.

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