Insurance in Australia: cover, exclusions and a practical comparison checklist
Match each policy to a loss you could not comfortably absorb. Check legal or visa requirements separately, then compare limits, exclusions, excesses and claims conditions before the premium.
In this guide
- Separate required cover from optional protection
- Car insurance: injury cover is not property cover
- Home and contents: value the things you own
- Health and ambulance cover
- Income protection: check the definition and waiting period
- Life and superannuation cover
- Compare like-for-like quotes
- Work through premium plus excess
- Avoid gaps at purchase and renewal
- Frequently asked questions
Separate required cover from optional protection
Registered vehicles need the relevant state or territory compulsory injury insurance arrangement. Some visas require adequate health insurance. Employers may have workers compensation duties, while a lender or contract may require other cover. Home, contents and most personal protection decisions depend on your circumstances. ASIC Moneysmart insurance guides.
Build a short inventory: people depending on your income, debts, belongings, vehicle, housing, existing superannuation insurance and emergency savings. This identifies which losses would be disruptive without assuming everyone needs every policy.
Car insurance: injury cover is not property cover
| Cover | Main purpose | Important limit |
|---|---|---|
| Compulsory injury cover / CTP | Personal injury under the local statutory scheme | Does not replace property-damage insurance |
| Third party property | Damage you cause to other people’s property | Usually does not cover damage to your own car |
| Third party fire and theft | Property liability plus specified fire/theft risks for your car | Collision damage to your car may still be excluded |
| Comprehensive | Specified damage to your car and liability for others’ property | Exclusions, valuation, excesses and optional benefits still apply |
In NSW a Green Slip is purchased separately before registration or renewal. Other jurisdictions have different payment arrangements; do not assume every CTP charge is included in registration. SIRA’s NSW Green Slip guidance.
Comprehensive does not cover everything. Roadside assistance, hire cars, windscreens and choice of repairer may be optional or limited. Check drivers, licence conditions, business/rideshare use, flood, accessories and market versus agreed value. Moneysmart car-cover checklist.
Home and contents: value the things you own
Renters generally insure their own belongings; the landlord’s building policy ordinarily does not insure the renter’s possessions. Owners should compare rebuilding and contents needs, including demolition, debris removal and temporary accommodation limits. Strata insurance scope differs from a personal contents policy.
Photograph belongings and estimate replacement cost room by room. Check portable valuables, single-item limits, flood definition, accidental damage, unoccupied-home conditions and any liability cover. Moneysmart home insurance and contents insurance.
Health and ambulance cover
Check Medicare eligibility, visa conditions and then the appropriate product: domestic hospital/extras, OSHC or OVHC. Medicare does not cover ambulance. State schemes, concessions, memberships and policies have different residency, interstate, emergency and non-emergency rules. Official ambulance-cover guidance.
Use our temporary visa health-cover decision tree and hospital category comparison to prepare questions for insurers.
Income protection: check the definition and waiting period
Income protection can replace a policy-defined portion of earnings if illness or injury prevents work. The percentage is not universally 75%; definitions, offsets, monthly caps, waiting and benefit periods vary. It is not generally unemployment insurance. Visa, occupation and residence eligibility must be confirmed with the provider. Moneysmart income protection guide.
Illustrative cash buffer: essential spending of $3,000 a month and a 60-day waiting period suggests about $6,000 for those two months, before any payment-processing delay. Check sick leave, savings and actual policy terms rather than assuming benefits start immediately.
Life and superannuation cover
Check existing life, total and permanent disability and income protection cover in super before buying more. Read insured amounts, exclusions and definitions; cover can stop under some account circumstances. Consider debts and people relying on your income, and avoid cancelling existing protection before replacement is confirmed. Moneysmart life insurance overview.
Compare like-for-like quotes
- Use the same people, property, use, sum insured and excess in each quote
- Read the PDS, policy schedule and any supplementary terms together
- Check exclusions, claim limits, waiting periods, sub-limits and cancellation terms
- Ask a comparison service which insurers it covers and how it is paid; a panel may not include the whole market
- Check annual cost against instalments, introductory discounts and renewal terms
A comparison is a decision aid, not evidence that a named insurer is best for every migrant. Keep the dated quotes and written answers to unusual eligibility questions.
Work through premium plus excess
Invented example: policy A costs $900 a year with a $1,000 excess; B costs $1,080 with a $500 excess. With no claim A costs $180 less. With one claim attracting one excess, A totals $1,900 and B $1,580 before uncovered costs. Multiple or additional driver excesses can change this. Choose an excess you can actually pay.
Avoid gaps at purchase and renewal
Answer the insurer’s questions accurately and ask for clarification where needed. Check when cover starts, whether changing your address or vehicle use matters, and whether any waiting period applies. Compare renewal terms without assuming a guaranteed discount. Before switching, confirm the replacement start date, cancellation charge and any loss of continuing-cover benefits.
Frequently asked questions
Does comprehensive car insurance cover everything?
No. Exclusions, limits, excesses and valuation rules apply. Roadside assistance and other benefits may be optional.
Is CTP always included in registration?
No. In NSW a Green Slip is purchased separately. Other states and territories use different arrangements.
Does income protection always pay 75%?
No. The insured percentage, caps, offsets, waiting period and definition of disability depend on the policy.
Should I automatically renew insurance?
Review the price and terms against suitable alternatives, but keep continuous protection where needed and confirm replacement cover before cancellation.
Source review: 1 October 2026. This is general navigation and decision support, not a diagnosis, an eligibility decision or a personalised insurance recommendation. Confirm your circumstances with the service or insurer before relying on cover.