Key Takeaway: In Western Australia (WA), Compulsory Third Party (CTP) insurance is included in your vehicle registration and covers personal injury liability only.
To protect against damage to vehicles and property, you must purchase optional cover—Third-Party Property, Third-Party Fire & Theft, or Comprehensive insurance—each offering increasing levels of protection and cost.
1. Compulsory Third Party (CTP) Insurance
Every registered vehicle in WA automatically carries CTP insurance under the Motor Injury Insurance Scheme administered by the Insurance Commission of Western Australia (ICWA).
- Coverage: Compensation for bodily injury or death of third parties (drivers, passengers, pedestrians, cyclists), including medical treatment, rehabilitation, lost wages, and care support. Catastrophic Injuries Support (CIS) is also included for lifetime treatment of severe injuries when no other driver is at fault.
- Exclusions: No cover for vehicle damage or property damage—only personal injury.
- Cost: Paid as part of the annual registration; for a standard car, approximately AUD 491.40 per year.
2. Optional Car Insurance Types
To cover vehicle and property damage, WA motorists choose from three optional policy types:
| Policy Type | Covers Your Vehicle | Covers Others’ Vehicle/Property | Covers Fire & Theft | Includes CTP (Injury) |
|---|---|---|---|---|
| Third-Party Property Only | No | Yes | No | Yes (via rego) |
| Third-Party Fire & Theft | No | Yes | Yes | Yes (via rego) |
| Comprehensive | Yes | Yes | Yes | Yes (via rego) |
2.1 Third-Party Property Only
- Covers: Liability for damage you cause to another person’s vehicle or property.
- Does not cover: Your own car or fire/theft losses.
2.2 Third-Party Fire & Theft
- Covers: Third-Party Property cover, plus protection for your vehicle if stolen or damaged by fire.
- Suitable for: Older or lower-value cars where full Comprehensive cover may be cost-prohibitive.
2.3 Comprehensive Insurance
- Covers: The highest level of cover, including damage to your own vehicle (regardless of fault), others’ vehicles/property, fire, theft, and selected weather events (flood, hail).
- Often includes optional extras: Roadside assistance, rental car after an accident, agreed-value settlement, personal effects cover, and reduced excess for windscreen repair.
3. Key Policy Features & Optional Extras
When comparing insurers and policies, consider:
- Agreed vs. Market Value: Agreed-value policies lock in a fixed payout amount, often yielding higher premiums but greater certainty at claim time.
- Excess Levels: Higher voluntary excess can reduce premiums but increases out-of-pocket costs when claiming.
- Roadside Assistance & Towing: May be included or offered as an add-on.
- Hire Car After Accident: Covers hire vehicle costs while your car is repaired or replaced.
- Personal Effects Cover: Insures contents of your vehicle against theft or damage.
- New Car Replacement: For new-model vehicles written off within a specified time frame.
4. Premium Factors & How to Lower Costs
Premiums vary based on:
- Driver Age & Experience: Younger drivers (< 25 years) often incur higher excesses and premiums.
- Vehicle Make, Model & Value: Higher-value and performance cars cost more to insure.
- Location: Urban areas with higher traffic density or theft rates attract higher premiums.
- Driving Record: Demerit points, claims history, and past accidents influence risk assessment.
- Annual Kilometres: Low-mileage or pay-as-you-drive plans may yield discounts.
Tips to Reduce Premiums:
- Opt for a higher voluntary excess if you can afford it.
- Restrict named drivers and avoid high-risk drivers.
- Bundle policies (e.g., home and car) with the same insurer.
- Maintain a clean driving record and complete accredited driving courses.
5. Claims Process in WA
- Immediate Steps: Ensure safety, exchange details with other parties, photograph damage, and notify police if required.
- Notify Insurer: Contact your insurer as soon as possible—many offer 24/7 claims lodgement via app or hotline.
- Assessment & Repair: Insurer arranges assessment; approved repairer network may offer lifetime repair guarantees.
Settlement:
- Comprehensive & Third-Party Fire & Theft: Claim for repair costs or total loss settlement.
- Third-Party Property: Insurer negotiates settlement with the other party’s insurer or direct pay if uninsured.
- CTP: Claims handled by ICWA for personal injury compensation.
RAC WA reports streamlined claims handling, with funds released rapidly post-assessment, while regulators note rising complaints around untimely communication in claims handling.
6. Major Car Insurers in Western Australia
Insurers active in WA include:
| Insurer | Popular Products | Notable Awards |
|---|---|---|
| Insurance Commission of WA | CTP & CIS | Sole CTP provider in WA |
| RAC WA | Comprehensive, TPFT, TP | Best for roadside assistance, high customer satisfaction |
| Youi | Comprehensive, TPFT, TP | Most Loved Brand 2024; Car Insurer of the Year |
| Iselect (comparison) | Multiple brands | Quotes aggregator—market overview |
| Canstar & Finder (comparison) | Multiple brands | Star-rated comparison tools |
When selecting an insurer, review each provider’s Product Disclosure Statement (PDS) and customer reviews, and compare quotes for your specific circumstances.
7. Conclusion
Navigating car insurance in WA begins with understanding that CTP is compulsory and included in registration, covering only personal injury liability. For vehicle and property protection, choose between Third-Party Property, Third-Party Fire & Theft, or Comprehensive policies—each with distinct benefits, optional extras, and cost implications. Compare products, tailor your excess and extras, and maintain a good driving record to optimize cover and affordability.
