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Paul Coughran

Paul Coughran

Updated 22/01/2025

Comparing Car Insurance in NSW

Navigating car insurance in New South Wales (NSW) can feel daunting with so many options to choose from. Understanding what each policy offers and identifying ways to reduce costs are crucial for making the best choice. 

Key Points

  • Sydney’s average cost for comprehensive car insurance in NSW is $219.27 per month, making it the fourth-highest in Australia.

  • Comparing policies can help you avoid overpaying while securing the right coverage for your needs.

  • Government incentives in NSW, like Green Slip refunds and pensioner concessions, can make car ownership more affordable.

How much does car insurance cost in NSW?

In Sydney, NSW, the average monthly premium for comprehensive insurance is $219.27. Factors such as heavy traffic, high population density, and expensive repair costs contribute to this amount.

Comprehensive insurance covers your car, other vehicles, property damage, and risks like theft or natural disasters. However, it isn’t a legal requirement.

CTP car insurance in NSW – known locally as a Green Slip – is mandatory for vehicle registration. This covers injuries or fatalities caused to others in an accident, but does not include protection for your own car or property.

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Why Compare Car Insurance?

No two insurance policies are the same, and comparing options allows you to find one that’s tailored to your needs and budget. 

Using a car insurance comparison tool simplifies the process of evaluating insurers. Whether you’re after the cheapest car insurance in NSW or a policy with extra features, comparing options ensures you’re not paying for coverage you don’t need or missing out on potential savings.

Discounts & Incentives for Car Insurance in NSW

New South Wales provides several incentives that can reduce the overall costs of car ownership:

  • Pensioner registration concessions: Eligible pensioners can benefit from full registration fee exemptions, significantly lowering car ownership expenses.

  • Carer concessions: If you receive a Commonwealth Carer Payment or Carer Allowance from Centrelink, you might be eligible for a lower motor vehicle tax rate.

  • Low-emission concessions: Vehicles with low emissions, such as electric vehicles (EVs), may qualify for a concession on motor vehicle tax.

Although these incentives don’t directly reduce insurance premiums, they may make vehicle ownership more manageable. 

Additionally, many insurers offer discounts such as:

  • No-claim bonuses for remaining accident-free.

  • Multi-policy discounts when you bundle multiple types of insurance.

  • Safe driver discounts for maintaining a clean record.

Average Car Insurance Premiums in Australia

Sydney’s average premium for comprehensive car insurance is $219.27, ranking fourth among Australian capitals. Here’s a breakdown:

Rank (most expensive to least expensive)

City/State

Average monthly comprehensive car insurance premium per household

1.

Melbourne, VIC

$281.10

2.

Brisbane, QLD

$260.61

3.

Darwin, NT

$221.48

4.

Sydney, NSW

$219.27

5.

Canberra, ACT

$185.77

6.

Adelaide, SA

$174.94

7.

Hobart, TAS

$139.79

8.

Perth, WA

$129.30

Source: https://www.statista.com/statistics/1310851/australia-weekly-car-insurance-per-household-capital-cities/

Benefits & Optional Extras

When exploring comprehensive car insurance in NSW, insurers may offer a range of optional extras that offer added security, such as:

  • Roadside assistance in case of a breakdown.

  • Windscreen or glass cover to repair or replace damaged windows.

  • New car replacement if your vehicle is written off within a certain period.

  • Choice of repairer, giving you control over where your car is fixed.

But keep in mind while these extras provide valuable peace of mind, they can raise your overall premium.

Conclusion

The best car insurance in NSW isn’t just about price; it’s about finding coverage that aligns with your needs. By comparing policies and taking advantage of available incentives, you can minimise costs while ensuring your vehicle is well protected. [CTA] Compare policies or speak with a Compare Club advisor to make sure you’re covered.

Frequently asked questions

How much is car insurance in NSW? Premiums for car insurance in NSW depend on your location, driving history, and vehicle type. Comparing policies regularly is the best way to find affordable options.

What car insurance do I need in NSW? All registered vehicles must have CTP car insurance in NSW, Additional coverage, like comprehensive car insurance, is optional but recommended for added protection.

How much is comprehensive car insurance in NSW? The cost of comprehensive car insurance varies, but the average in Sydney is $219.27 per month. Factors such as location, vehicle type, and driving record all impact your premium.

What's the difference between market vs agreed value? Market value reflects your car’s current worth based on depreciation, while agreed value is a predetermined sum agreed upon with your insurer.

What car insurance extras are available? Optional extras include roadside assistance, windscreen or glass cover, and new car replacement, depending on the insurer.

What is excess on car insurance? Excess refers to the amount you pay out-of-pocket when making a claim. Opting for a higher excess can reduce your premium, but it increases your costs if you need to make a claim.

How can you save on car insurance? Consider comparing policies, maintaining a good driving record, and bundling your car insurance with other policies to take advantage of multi-policy discounts.

Additional resources

Sources

Money Smart

Service NSW

SIRA – CTP refunds 

SIRA – Green slips

NSW Government

Paul Coughran is the General Manager of Emerging Verticals at Compare Club. Paul has over 20 years of experience across a wide range of industries including Banking and Finance, Telecommunications and Energy. Paul leads a team of trusted experts dedicated to helping individuals make informed decisions about their insurance and utilities needs.

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Meet our car insurance expert, Paul Coughran

Paul's top car insurance tips

  • 1

    Regularly compare your insurance policies – You could be paying for cover you don’t need. Shopping around every so often can save you a fair bit, maybe even hundreds each year.

  • 2

    Don’t just look at the premium—check the excess too. While a higher excess might bring down your premium, remember you’ll have to fork out more if you do need to claim.

  • 3

    Double-check what’s included in your policy. Extras like windscreen cover or roadside assistance might not be part of the deal and could cost you more.

  • 4

    If you don’t drive much, consider usage-based insurance. Some policies base your cost on how much you actually drive, if you work from home or only use your car for short trips this might be a much better option.