Australia (AU)
Australia is the world's sixth-largest country by area and one of the most urbanised nations on Earth, with over 85% of its 27 million people living in coastal cities.
Insurance Guide
Which insurances you actually need in Australia, prioritised.
Australia has a mix of compulsory and voluntary insurance. The critical essentials for any resident are: health insurance (to avoid the Medicare Levy Surcharge if earning above $93,000), Compulsory Third Party (CTP) car insurance, and ambulance cover (not covered by Medicare except in SA and TAS). Contents insurance and income protection are strongly recommended for anyone without significant savings. Policies are regulated by APRA (Australian Prudential Regulation Authority) and ASIC (Australian Securities and Investments Commission). Compare insurance using comparison websites (comparethemarket.com.au, iSelect, Finder) and the government's privatehealth.gov.au for health insurance.
Legally Mandatory
- - Compulsory Third Party (CTP) insurance — required to register any motor vehicle in any state or territory
- - Building insurance — required by most mortgage lenders as a condition of settlement
- - Workers Compensation — required by law for any business with employees
Private Health Insurance — Hospital Cover
Covers private hospital room, choice of specialist/surgeon, access to private hospitals, and shorter waits for elective surgery. Four tiers in Australia (since April 2019): Basic, Bronze, Silver, Gold — standardising what each tier must include.
Who needs it: Anyone earning above $93,000 (single) / $186,000 (family) to avoid the Medicare Levy Surcharge (MLS) of 1–1.5% of taxable income. Anyone over 31 who does not already have hospital cover (Lifetime Health Cover loading of 2% per year over 31 applies).
Annual cost: $960–$1,560/year (basic, single). $2,160–$3,360/year (gold, single). $3,600–$7,200/year (gold, family)
The Government Private Health Insurance Rebate reduces premiums by 24.608% for singles earning under $93,000 (2025–26). Apply for the rebate via your insurer or tax return. Compare on privatehealth.gov.au — the government comparison website. Waiting periods: 2 months (general), 12 months (pre-existing conditions), 12 months (psychiatric, rehabilitation, palliative care).
Ambulance Cover
Covers the cost of an ambulance call-out and transportation. Medicare does NOT cover ambulance in most states. A single ambulance call-out costs $1,200–$4,000+ depending on the state and distance travelled.
Who needs it: Everyone in QLD, NSW, VIC, WA, TAS, NT, and ACT. SA residents: ambulance is free for SA residents (funded by state government). TAS residents: ambulance is partially subsidised. For all other states, ambulance cover is essential.
Annual cost: $45–$120/year (single subscription). Free for QLD residents (Ambulance service subscription is $0 via Queensland Ambulance Service — funded by government). NSW: $40–$100/year private or included in some health insurance extras.
Check if your private health insurance extras cover includes ambulance — some policies include it. Gold-tier hospital policies often include ambulance cover. If you move between states, update your ambulance cover — a QLD subscription does not cover you in NSW.
Home and Contents Insurance
Building insurance covers the physical structure of your home against fire, storm, flood, and other events. Contents insurance covers your possessions inside the home against theft, fire, water damage, and accidental breakage.
Who needs it: Homeowners (building + contents). Renters (contents only — the landlord covers the building). Building insurance is typically required by the mortgage lender.
Annual cost: $800–$2,500/year (combined building + contents, typical house). $300–$600/year (contents only, renter). Premiums vary enormously by location — flood zones, bushfire risk areas, and cyclone regions attract significant surcharges.
Check the flood and bushfire risk of your address before purchasing — insurers may exclude or significantly limit coverage in high-risk areas. The Australian Government has a National Flood Information database. Strata insurance (for apartments): the owners corporation (body corporate) covers the building; you only need contents. Check the body corporate insurance certificate to confirm what is covered.
Compulsory Third Party (CTP) — Car Insurance
Compulsory insurance covering your legal liability for injuries to other people caused by your vehicle. CTP is included in or purchased alongside vehicle registration. It does NOT cover vehicle damage — only personal injury liability.
Who needs it: Every vehicle owner — legally required in every state to register a vehicle.
Annual cost: $350–$700/year (passenger car, depending on state and vehicle type). NSW: separate "Green Slip" purchased from approved insurer ($350–$650). VIC: TAC charge included in registration ($600–$900 total rego). QLD: CTP included in registration.
CTP only covers personal injury — it does not cover damage to your car or the other party's car. Always also purchase comprehensive or third-party property insurance for vehicle damage.
Private Health Insurance — Extras Cover
Covers health services not included in Medicare: dental, optical (glasses/contacts), physiotherapy, chiropractic, psychology, podiatry, acupuncture, hearing aids, and more.
Who needs it: Anyone who regularly uses dental, optical, or allied health services. Without extras cover, a dental check-up costs $150–$250 and a filling $150–$300.
Annual cost: $360–$960/year (single). Annual limit per service category typically $300–$800 for dental, $200–$300 for optical.
Annual benefit limits reset 1 January (or your policy anniversary date). Most extras policies have 2-month waiting periods. Major dental (crowns, root canals) has 12-month waiting periods. Check annual maximums carefully — some policies pay out only $200/year for dental, barely covering one check-up.
Comprehensive Car Insurance
Covers damage to your own vehicle and the other party's vehicle/property regardless of who is at fault. Also covers theft, fire, and weather damage to your car.
Who needs it: Anyone with a car worth more than $5,000 or who cannot afford to replace their vehicle out of pocket.
Annual cost: $800–$2,500/year (typical passenger car). Depends heavily on age, location, vehicle make/model, and claim history.
Third-Party Property (TPP) insurance is a cheaper alternative ($200–$600/year) — covers damage you cause to other vehicles/property but not your own car. Third-Party Fire and Theft adds fire and theft coverage ($300–$700/year).
Income Protection Insurance
Monthly income replacement (up to 70–75% of pre-disability income) if you are unable to work due to illness or injury. Payments continue for a "benefit period" of 2 years, 5 years, or to age 65.
Who needs it: Anyone who relies on their salary — particularly self-employed, contractors, and those without employer-funded sick leave. Australia's Disability Support Pension provides minimal income for those who become permanently disabled.
Annual cost: $600–$2,400/year. Depends on occupation class, income level, waiting period (30/90/180 days), and benefit period.
Income protection premiums are tax-deductible for self-funded policies (not for policies inside super). Many superannuation funds include default income protection as part of their group insurance — check your super fund insurance before buying separately. The waiting period (how long before payments begin) significantly affects the premium — a 90-day waiting period is much cheaper than 30 days.
Life Insurance
Lump sum payment to your nominated beneficiary upon your death or diagnosis of terminal illness.
Who needs it: Anyone with dependants (children, non-working partner) or significant mortgage debt. Check your superannuation first — most super funds include default death cover.
Annual cost: $400–$2,000+/year depending on sum insured, age, and health.
Superannuation funds often include default life insurance — check your annual super statement for death cover and total permanent disability (TPD) cover amounts. This default cover may not be sufficient. Additional life insurance can be held inside or outside super.
Travel Insurance
Covers medical emergencies, trip cancellation, lost luggage, and personal liability while travelling internationally. Medicare and private health insurance provide no cover overseas.
Who needs it: Anyone travelling internationally. Australia has no universal overseas medical coverage — a medical emergency in the USA can cost $100,000+.
Annual cost: $80–$250 per trip (single trip). $250–$600/year (annual multi-trip policy).
Annual multi-trip policies are cost-effective for frequent travellers. Always declare pre-existing medical conditions or the policy may be void. Check if your credit card includes travel insurance — many premium cards (Westpac, ANZ, CBA) include it for trips paid on the card.
Comparison sites
Do not wait until age 31+ to take out private hospital insurance — the Lifetime Health Cover loading adds 2% to your premium for every year you are over 31 at first purchase. Bought at 35 = 8% loading; at 45 = 28% loading — this loading is permanent for life.
Review your super fund's insurance coverage annually — your default super insurance may be cancelled automatically if your account is inactive for 16 months (low-balance rule). Opt-in to keep it.
For renters: contents insurance is often overlooked but inexpensive ($300–$600/year) and provides significant peace of mind against theft and damage.
Insurance
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