Car insurance regulations

How do you navigate the car insurance regulation minefield?

There’s a reason why insurance brokers are so popular in Australia. Complex policies and an overload of information makes obtaining insurance something we all need to do, but would rather not think about.

What are the major types of insurance?

Maintenance and management of registration requirements in Australia can be different depending on what state you’re in, however there are three basic types of insurance that you can obtain regardless. (Note: these are not required by legislation):

• comprehensive motor vehicle – provides the greatest level of protection for your car by insuring against loss or damage to your car (or a third party) and legal liability;
• third party (fire and theft) – is a limited policy, protecting you against legal liability with respect to property damage caused by your vehicle. It can also protect you if you have had an accident that isn’t your fault and you are able to identify the other vehicle. Finally, it protects you against fire and theft.
• third party property damage – is another limited policy providing protection against property damage and limited cover if you are in an accident that is not your fault and you are able to identify the other vehicle.

Where can I get insurance from?

You can either go directly to insurance companies who can often create a policy for you over the phone. This can take 10 minutes and you’re covered.

Alternatively, if you are unsure of the options and want to use an expert, insurance brokers can take the legwork out of finding an insurance policy for you. They can also negotiate on your behalf for discounted premiums.

How much will insurance cost?

The cost of insurance policies will alter depending on individual circumstances. If you are a young driver with a hotted up Commodore, expect to spend plenty. If you are an older driver with a good driving record and sensible car, your premiums will be much less.

I’m confused. What are green, pink, blue and white slips?

If you are registering your car in NSW, QLD or SA you will need to understand what the following slips are (Note: QLD and SA only requires the completion of green slips).

Green slip

A green slip is third party compulsory insurance. All vehicles registered in NSW, QLD and SA must pay this insurance prior to the car being recognised as fully registered.

Within NSW, rates of insurance will vary depending on where the car is being registered. You will need to speak to your insurer as to the differing rates and what they can offer you.

In QLD, rates will also vary depending on the insurer.

IN SA, rates are set by the Motor Accident Commission and administered by Allianz.

All other states / territories will have CTP, however this will form part of the registration costs of your car rather than being administered as a separate cost.

Pink slips (NSW only)

Pink slips are safety reports which proves that the vehicle is roadworthy.

Blue slips (NSW only)

A blue slip warrants that an unregistered vehicle in NSW is roadworthy. This is most commonly used to establish car registration or where an interstate vehicle is being registered in NSW.

White slips (NSW only)

A white slip is not good news. It shows that a vehicle is unroadworthy and requires immediate repair before it can receive a pink or blue slip