Do I need car insurance in Australia?

Yes, you need car insurance in Australia at least to the level of Compulsory Third Party insurance, which is legally mandatory. Every registered vehicle must have CTP insurance, also known as Green Slip in New South Wales, MAI in Queensland, or TAC charge in Victoria. CTP covers personal injury liability if you injure or kill someone else in a car accident, including pedestrians, cyclists and passengers. Without CTP you cannot register your car, and driving unregistered is illegal with fines of $1,300 to $2,800 plus demerit points and potential vehicle impoundment. CTP is included in your registration fee in VIC, QLD, WA, SA, TAS and NT, but in NSW and ACT you must buy it separately from insurers like NRMA, Allianz, QBE or GIO. While CTP is the only legal requirement, it does not cover any damage to cars or property. It is not legally required to have comprehensive or third party property insurance, but it is financially essential. If you cause an accident and damage a $80,000 car, a Tesla, or a shopfront, you are personally liable for tens of thousands of dollars if you only have CTP. That is why about 80% of Australian drivers buy comprehensive car insurance which covers your car and others, or at least third party property damage cover which costs $300 to $600 per year and covers damage you cause to other people's cars and property. Lenders also require comprehensive insurance if you have a car loan.