Car Insurance for Used Vehicle Buyers in Australia: What You Need to Know

Car insurance is not optional — you need comprehensive or at minimum third party coverage before you drive any newly purchased vehicle. But how you approach insurance, what type you choose, and whether your vehicle's history affects your options are all important considerations.

Types of Car Insurance in Australia

Comprehensive

Covers damage to your vehicle (regardless of fault) plus third party damage and injury. The most complete protection — recommended for any vehicle worth over $10,000.

Third Party Property

Covers damage you cause to other people's vehicles and property — but not your own vehicle. Cheaper, but leaves you unprotected if your car is damaged or written off.

Third Party Fire and Theft

Extends third party property to include cover if your vehicle is stolen or damaged by fire. Good middle-ground for older lower-value vehicles.

Compulsory Third Party (CTP)

CTP (Green Slip in NSW) is included in registration in most states and covers personal injury only. It is not optional and does not cover property damage.

Check if this vehicle has outstanding finance registered against it — from $9.95 + GST.

How Vehicle History Affects Insurance

WOVR History

Vehicles with WOVR write-off history:

Some insurers will not insure repairable write-offs at all

Those that do typically require proof of re-registration inspection

Premiums are typically higher

Agreed value policies may be unavailable — market value only

Always get an insurance quote before purchasing any WOVR vehicle — you might be unable to get comprehensive coverage at all.

High Kilometre Vehicles

Many insurers factor in vehicle age and kilometres. Very high-km vehicles may only be insurable at market value (not agreed value).

Modified Vehicles

Modifications must be disclosed. Lifted suspension, engine modifications, and non-standard components can affect premiums and claim validity. Failure to disclose modifications can void your policy.

Getting the Best Premium

Compare multiple insurers before settling

Choosing a higher excess typically reduces premiums significantly

Some insurers discount for features like immobilisers, dashcams, and secure parking

Multi-policy discounts are common — insure home and vehicle with the same provider

Before You Insure: Run Your History Check

A National VIN Check before purchase ensures you know the vehicle's WOVR status and PPSR status before committing to insurance. Discovering WOVR history after purchase that affects your insurability is a very bad position to be in.

Run your check before you buy — always.

Car Insurance for Used Vehicle Buyers in Australia: What You Need to Know