Best Car Insurance for International Drivers in Australia for Foreigners (2025 Guide)

For many international drivers and foreigners arriving in Australia, one of the first questions is: how do I get car insurance that covers me properly and doesn’t cost a fortune?

Whether you are in Australia on a student visa, working holiday visa, permanent residency path, or just visiting, driving can make your life much easier. But getting insured as a foreigner can feel confusing at first.

This guide explains everything you need to know about the best car insurance for international drivers in Australia for foreigners in 2025. You’ll learn:

• Why car insurance is important for foreigners in Australia

• What types of car insurance are available

• Which companies are best for international drivers

• What to expect when applying as a foreigner

• Tips to save money and avoid common mistakes

By the end, you’ll feel confident choosing a policy that fits your needs and budget.

Why Do Foreigners Need Car Insurance in Australia?

In Australia, car insurance is not just a good idea — it is essential. If you are driving in Australia on an international or Australian license, you are responsible for any damages or injuries you cause on the road.

Here’s why you should never drive uninsured:

• Compulsory Third Party (CTP) insurance is required: This covers injuries to other people.

• Property damage is expensive: If you hit another car or property, costs can reach tens of thousands of dollars.

• Protect your own car: If you buy a car or lease one, comprehensive insurance protects your investment.

Even if you are only staying in Australia for a few months, having proper car insurance protects you from unexpected financial ruin.

Types of Car Insurance Available for Foreigners in Australia

Before you choose an insurer, it helps to understand the four main types of car insurance in Australia.

1. Compulsory Third Party (CTP) Insurance

• Also called Green Slip (in NSW)

• Legally required to register your car

• Covers injury or death to other people in an accident you cause

• Does NOT cover damage to cars or property

2. Third Party Property Damage

• Covers damage to other vehicles and property

• Does NOT cover your own car

3. Third Party, Fire and Theft

• Covers damage to other vehicles and property

• Covers your car if it’s stolen or damaged by fire

• Does NOT cover your car if you crash it

4. Comprehensive Insurance

• The most complete cover

• Covers damage to your car and others’ cars/property

• Includes fire, theft, weather damage, and more

For international drivers who own or lease a car, comprehensive insurance is usually the best option.

Best Car Insurance Companies for International Drivers in Australia (2025)

Not all insurers welcome foreigners equally. Below are the most recommended companies that offer good rates, flexible policies, and clear rules for international license holders.

1. NRMA Insurance

• Why choose NRMA: Very foreigner-friendly and covers a wide range of drivers, including those on international licenses.

• Best for: Long-term visitors or residents in NSW, ACT, or QLD.

• Key benefits: 24/7 roadside assistance add-on, multiple policy discounts.

2. Allianz Australia

• Why choose Allianz: Trusted global insurer with experience insuring foreigners.

• Best for: Students and professionals looking for reliable comprehensive cover.

• Key benefits: Online discounts, clear policies for non-residents.

3. Budget Direct

• Why choose Budget Direct: Competitive rates and easy online application.

• Best for: Budget-conscious foreigners with a clean driving record.

• Key benefits: Award-winning service, quick quotes.

4. RACV (Victoria) / RACQ (Queensland) / RAA (South Australia)

• Why choose RACV, RACQ, RAA: Regional auto clubs offering great member benefits.

• Best for: Residents or long-term visitors in specific states.

• Key benefits: Roadside assistance included, loyalty rewards.

5. Youi Insurance

• Why choose Youi: Personalised policies tailored to your driving habits.

• Best for: Drivers who want to speak to a real person and customize their coverage.

• Key benefits: Flexible premiums, good discounts for low mileage.

6. AAMI

• Why choose AAMI: Simplified policies and strong claims support.

• Best for: Anyone looking for reliable service and standard rates.

• Key benefits: Free roadside assistance for the first year (with comprehensive policies).

Summary Table: Best Car Insurance for International Drivers in Australia (2025)

What Do You Need to Apply for Car Insurance as a Foreigner?

The application process for foreigners is similar to locals, but you may need to provide more details.

Here’s what insurers usually ask for:

• Your full name and contact details

• Address in Australia

• Type of visa and expected length of stay

• Driver’s license information (international or Australian)

• Driving history (including claims and accidents)

• Vehicle details (make, model, year, VIN)

Most insurers accept an international license for a certain time (usually up to 3 months to 1 year, depending on your visa and state). If you stay longer, you may need to apply for an Australian license.

Tips to Save Money on Car Insurance in Australia

Car insurance can be expensive for foreigners, but here are proven ways to reduce your premium.

Choose a Higher Excess

Opting for a higher excess (the amount you pay when making a claim) can lower your yearly premium.

Drive a Cheaper Car

Expensive or high-performance cars cost more to insure. Choosing a modest, reliable car can save you money.

Keep Your Record Clean

Avoid accidents and claims — even one incident can raise your premium significantly.

Park Securely

Insurers may offer discounts if you park in a garage or secure lot.

Bundle Policies

If you also need home or contents insurance, bundling policies with one provider can earn you discounts.

Compare Quotes Every Year

Don’t just renew automatically. Get at least three quotes to make sure you’re getting the best rate.

Common Mistakes Foreigners Should Avoid

• Assuming CTP is enough: It only covers injury to others, not damage to vehicles or property.

• Not disclosing foreign accidents: Insurers may cancel your policy if they find undisclosed incidents.

• Ignoring state-specific rules: Different states have different registration and licensing rules.

Real-Life Example

Case Study:
Maria, a student from Spain on a 2-year visa in Sydney, bought a used Toyota Corolla. At first, she was quoted over $3,000 per year for comprehensive insurance. By comparing quotes and choosing Budget Direct, she reduced her premium to $1,450 annually. She also increased her excess to lower the cost.

Frequently Asked Questions (FAQ)

1. Can I get car insurance with an international license in Australia?

Yes. Many insurers cover drivers with a valid international license, but some may require you to switch to an Australian license after a certain period.

2. Is car insurance mandatory for foreigners in Australia?

CTP insurance is mandatory to register your car. However, property and comprehensive insurance are optional but strongly recommended.

3. Which type of insurance is best for foreigners?

Comprehensive insurance is the safest choice because it covers damage to your car and others, as well as theft and fire.

4. Can I get insured if I’m only staying for a few months?

Yes. Some insurers offer short-term or flexible policies suitable for temporary visitors.

5. Do insurers check my driving history from my home country?

Some may ask about it, especially if you claim a “no-claims” discount. Be honest about your history.

6. How can I prove my driving experience?

Bring an official driving history or letter from your home country’s licensing authority or insurer.

7. Can I transfer my no-claims bonus from another country?

Some insurers accept international no-claims discounts, but not all do. Check when you apply.

8. What happens if I have an accident without insurance?

You will be personally liable for all damages, which could cost thousands or even more.

9. Is it cheaper to add myself as a named driver?

If you’re sharing a car with someone else, being a named driver on their policy can be cheaper.

10. Can I drive a rental car with my international license?

Yes, most rental companies accept international licenses, but you should also buy rental car insurance.

Final Thoughts: Best Car Insurance for International Drivers in Australia for Foreigners (2025)

Getting car insurance as a foreigner in Australia may seem overwhelming at first but with the right knowledge and preparation, it can be simple and affordable.

This guide has shown you:

• Why insurance is essential

• The types of cover available

• The best insurers for foreigners

• How to save money and avoid mistakes

If you are an international driver — whether visiting, studying, or working in Australia — take the time to compare quotes, choose the right level of cover, and drive with peace of mind.

Take the next step today:

• Gather your details.

• Check quotes from the recommended insurers in this guide.

• Select the policy that meets your needs and budget.

• Drive confidently, knowing you’re protected.