The minimum insurance that you must have is the COMPULSORY third party cover. This may be known by different names in the different Australian States. In New South Wales it is normally called a "Green Slip", in Queensland it is known as CTP, in Tasmania MAIB .
Compulsory Third Party is a compulsory insurance to cover Injury to Third Parties, that must be taken out when registering a motor vehicle.
It covers the owner or driver of the motor vehicle in the event of an accident against any legal liability or obligation that they may have to anyone that they injure, it only covers personal injury, it does not cover damage to other property, cars etc. If you purchase a car in New South Wales that is already registered you do not need to get a “green slip” until the registration expires. You just need to let the insurer your details.
Third party insurance covers the other person if you are involved in an accident. It doesn’t cover any damage sustained to your vehicle but will cover damage you do to other property and you also have cover in case the vehicle is stolen or damaged due to fire. Third party insurance is cheaper than comprehensive an is a good option if you have a cheaper car that does not warrant the cost of comprehensive in the meantime giving you peace of mind that in case of accident you won’t have to pay for damage to the other vehicle.
This policy does NOT cover Third Party injury to any person, as that is covered by the Compulsory third party cover mentioned above.
Comprehensive Insurance gives you the best protection. It is an optional insurance cover that covers damage to your car, and\other vehicles or property that may be damaged in an accident.
Again, this policy does NOT cover Third Party injury to any person, as that is covered by the Compulsory third party cover mentioned above.
There are various ways insurer’s accept payment for comprehensive cover. The most popular way is to pay on a monthly basis via direct debit. Insurers may charge slightly more for this rather than a lump sum but it means you can spread the cost of your insurance over the year.