Backpackers’ car insurance guide

CTP insurance is the minimum insurance required by law in Australia and is mandatory before registering a vehicle. CTP covers any expenses related to medical treatment, rehabilitation, and other care services to other drivers and passengers injured in accidents where you’re deemed at fault. 

However, it doesn’t cover any expenses related to your own treatment if you’re also injured in the accident. Additionally, CTP doesn’t cover any damage caused to your vehicle or other vehicles.

When you buy a car, you’re not required to get more car insurance other than CTP insurance. However, you may consider obtaining additional cover just in case your vehicle is damaged in an accident. 

If this happens, you’ll not only be paying to repair your car but also any other vehicles involved as well. Any additional cover will come at an extra cost, so you’ll have to ensure it’s within your budget. Additional car insurance in Australia for backpackers includes:

Third-party property insurance

Third-party property insurance covers accidental damage to third-party vehicles or property but doesn’t cover any damages to your vehicle.

Third-party fire and theft cover

This type of insurance covers everything that's covered in third-party property insurance, as well as any loss if your car is stolen or damaged in a fire.

Comprehensive insurance

Comprehensive insurance is the highest level of car insurance coverage you can get in Australia. It covers everything the other policies cover but also includes cover for your property. 

Comprehensive car insurance also covers accidental damage or damage caused by natural disasters. Any belongings inside the car are covered, and you can typically get your car keys replaced with comprehensive car insurance. 

You may also qualify for a replacement hire car if your car is being repaired after an accident, as well as other insurance features. 
This additional cover may be beneficial when driving as a backpacker across Australia, since you’re unlikely to have financial or physical support available to help cover unforeseen costs. Comprehensive car insurance comes at a higher cost, so this should be factored into your decision-making process.

Since you may be planning on driving your car around quite a lot as you see the country, here are some things you might want to consider covering as part of your insurance policy:

Breakdown cover or roadside assistance

Considering it’s likely that you’ll be driving a used car including breakdown cover or roadside assistance could be helpful as used cars are more prone to engine issues. Another feature that will be useful to have for your used car is emergency repair cover to help you in an emergency.

Bad weather

Australian weather is unpredictable, and things like hail, flooding, or storms can cause damage to a car that can cost a lot to repair. Ensuring you have backpackers' car insurance that includes cover for these sorts of events will help save you money if unexpected weather occurs. Be sure to read the insurance product disclosure statement (PDS) carefully, as some policies may cover specific events but not others.

Contents cover

You’ll likely keep some of your belongings inside the car while travelling across Australia. Getting replacement coverage for expensive items like phones, laptops, passports, and other items may be a wise decision.

Hitting an animal

You never know what you’ll encounter on the roads in Australia. From kangaroos to wombats to feral dogs - they can all do damage to your car if you hit them. Hitting a kangaroo, in particular, is quite common and can cause severe damage to your car, and repairs may become expensive. Opting for coverage that includes if you hit an animal can help you save money.

There are multiple ways to find the most affordable car insurance for backpackers, but here are a few tips to help:

• Buy online - Generally, if you buy the policy online, this can reduce the premium cost by 20 per cent or more when you opt for comprehensive insurance
• Primary driver is over 25 - When possible, nominate a person over 25 to be the primary driver, as insurers consider them to be better drivers and offer a comparatively lower premium.
• Car make, and model - Insurers look at car makes and models differently and price insurance premiums based on things like safety and cost. If you shop around for a safe but affordable car, insurance companies may charge less in premiums.

Taking out backpacker car insurance is relatively simple. You’ll just need a few things to help you acquire a policy: 

• Primary address - This helps insurers know where the car will generally be parked and is used to help calculate your premium.
• License - Most overseas licenses can be used in Australia for three to six months before you have to get an international license. However, for some countries, you may need to go to the local transport office to get an international license straight away. This is especially true if your license isn't in English. 

Before taking out car insurance for backpackers in Australia, ensure you understand all the policy details and compare policies to find the most affordable and appropriate option.