Insurance in Australia: A guide for expats

Planning a move to Australia? One important thing to find out about is insurance – it provides a financial safety net that helps protect you from various risks.

In Australia, some types of insurance are required by law, while others are optional and depend on your personal needs. Knowing how insurance works will help you choose the right coverage and find a suitable provider.

This guide offers a simple overview of insurance in Australia – what it is, how it works, and the main types available. It is intended for general information only and shouldn’t be taken as professional advice. For guidance specific to your situation, speak with a qualified US insurance professional.

Overview of insurance in Australia

Australia has a well-developed insurance market, ranked the 15th largest in the world in 2024, with total premiums exceeding USD 75 billion. The market is generally divided into three main sectors:

• Life insurance – covers death, disability, and income protection
• Health insurance – includes both public and private health cover
• General insurance – covers property, vehicles, travel, and liability risks

Some forms of insurance are compulsory and managed by government schemes, for example Medicare for public healthcare and workers’ compensation. In the private market, individuals and businesses can purchase a range of insurance through licensed insurers, independent brokers, or financial institutions like banks.

Insurance in Australia is regulated by two key agencies:

• Australian Prudential Regulatory Authority (APRA), which oversees the financial stability and solvency of insurers.
• Australian Securities and Investments Commission (ASIC), which issues licenses and monitors financial service providers to protect consumers.

How does insurance work for expats in Australia?

Insurance in Australia generally works much the same for expats as it does for Australian citizens. However, access to certain types of cover — such as public insurance schemes and some life insurance products — may depend on your residency status.

If you move to Australia and want to transfer an existing policy from your home country, contact your insurer to see whether this is possible. Overseas policies can sometimes remain valid if the insurance company has an Australian Financial Services License (AFSL) and your plan includes international coverage.

One option for expats is global insurance, such as international health or life insurance. These are available from specialist providers and can be useful if you travel often or need coverage in multiple countries, including Australia.

Do I need an insurance ID number or card as an expat in Australia?

No, you don’t need a specific insurance ID number or card to buy or use private insurance in Australia. When you take out an insurance policy, you’ll receive a policy number, which you use when filing a claim or requesting assistance.

However, to access Australia’s public health system (Medicare), you must apply for a Medicare card and show proof that you’re eligible as an Australian resident, or citizen of a country with a reciprocal healthcare agreement.

Other insurance providers may ask for proof of legal residence, an Australian address, or visa documentation when you apply for coverage.

If you’re an expat in Australia with a global insurance policy or need to make or receive international payments, services like Wise can make the process easier. Wise lets you send money to 140+ countries using the mid-market exchange rate with no hidden fees. With a Wise multi-currency account, you can hold and exchange funds in 40+ currencies and receive payments in 20+ currencies, which is helpful for managing claims or premiums from abroad.

Which insurance in Australia is necessary?

Car Insurance

If you own a vehicle in Australia, you must have Compulsory Third Party (CTP) insurance as a minimum. You’ll need this insurance when you register the car.

Each state and territory runs its own CTP scheme. In some places, CTP is included automatically with registration, while in others you can choose from approved insurers. You can find more details for your location here:

• Australian Capital Territory (ACT) Motor Accident Injuries Scheme
• New South Wales CTP Green Slip Scheme
• Northern Territory Motor Accidents Compensation Scheme
• Queensland CTP Scheme
• South Australia CTP Scheme
• Tasmania CTP Scheme
• Victoria Transport Accident Charge (TAC)
• Western Australia Motor Injury Insurance Scheme

CTP insurance covers injuries or deaths to other people if you cause a road accident. It does not cover damage to vehicles or property, or any costs you incur yourself.

You can choose extra cover to protect yourself and your vehicle. The main types of optional car insurance are:

• Third Party Property (TPP): Covers damage to someone else’s vehicle or property if you’re at fault.
• Third Party Property, Fire, and Theft: Adds cover for your own car if it’s stolen or damaged by fire.
• Comprehensive: Covers damage to your own car as well as others’, including accidents where you’re at fault. It can also include fire, theft, vandalism, and weather damage.

Some comprehensive policies also include roadside assistance or breakdown cover, which can help with towing and basic repairs. However, insurance won’t cover deliberate damage or neglect.

The cost of car insurance in Australia depends on factors such as:

• Type of coverage
• Vehicle make and model
• Driver’s age and gender
• Driving history
• Location (costs vary by state and territory)

In 2025, the average cost of comprehensive car insurance is AUD 1220.

Health Insurance

Australia has a public health insurance system called Medicare. It covers all Australian citizens, permanent residents, and New Zealand citizens living in Australia.

Some temporary residents may be eligible if their home country has a reciprocal healthcare agreement with Australia, or if they hold certain visas.

Medicare is funded mainly by a 2% Levy paid by most taxpayers. It helps pay for a range of public healthcare services, including:

• Free or subsidized visits to GPs (family doctors)
• Free treatment in public hospitals
• Subsidized prescription medicines
• Subsidized specialist care, usually covering around 85% of the government-set fee

Medicare usually doesn’t include:

• Dental, optical, physiotherapy, or chiropractic treatment
• Ambulance services (except in some states and territories)
• Private hospital accommodation
• Some elective or cosmetic procedures

To get cover for these and other extras, many Australians choose to take out private health insurance. The three main types are:

• Hospital Cover: Helps pay for treatment as a private patient in either a public or private hospital. You can choose your own doctor or specialist.
• General (Extras) Cover: Pays for care not covered by Medicare.
• Ambulance Cover: Covers the cost of emergency ambulance transport, which excluded from Medicare in most areas.

Many insurers offer combined packages that include hospital and extras cover. Since 2020, all hospital insurance policies are grouped into four standard tiers: Basic, Bronze, Silver, and Gold.

The Australian government encourages people to take out private health insurance through several surcharges and incentives, including the Medicare Levy Surcharge, which is an extra tax of 1-1.5% applied to higher-income earners who don’t have private hospital cover.

Private health insurance costs in Australia depend on your age, location, medical history, and level of coverage. Average monthly costs in 2024 were:

• AUD 164.48 for hospital insurance
• AUD 73.42 for general (extra) cover

Social Security

Australia’s social security system provides welfare benefits to eligible citizens, permanent residents, and some temporary residents. These include:

• Age Pension: Income support for people aged 67 and over who have retired and meet income and asset tests.
• JobSeeker Payment: Financial support for unemployed people aged 22 and over who are actively looking for work.
• Disability Support Pension: Support for those suffering serious injuries or illnesses that prevent them from working and are expected to last at least two years.
• Family Tax Benefit: Assistance with the costs of raising children, based on family income and number of children.
• Youth Allowance: Financial help for young people who are studying, training, or looking for work. This generally applies to job seekers aged under 22, or full-time students aged under 25.
• Parental Leave Pay: Income support for new parents.

Unlike many European countries, Australia’s social security payments are funded through general taxation, not through separate social insurance contributions.

To apply for a payment, you need to set up a myGov account and link it to a Centrelink online account. You can then submit your application along with any requested documentation.

You can see the current payment rates and eligibility details on the Australian government website.

Workers’ Compensation Insurance

Workers’ compensation insurance is compulsory for all employers in Australia. It provides financial protection if an employee is injured or becomes ill because of their work.

This insurance can cover:

• Lost income while the worker is unable to work
• Medical and rehabilitation costs
• Funeral expenses if a work-related injury or illness results in death

Each state and territory in Australia runs its own workers’ compensation scheme, and employers must register with the relevant authority in their location.

Optional forms of insurance in Australia

Home Insurance

Home insurance in Australia usually has two main parts:

• Building Insurance: Covers the structure of your home – including fixtures such as fences, gates, and sheds – against events like fire, storms, floods, and vandalism.
• Contents Insurance: Protects your personal belongings inside the home, such as furniture, appliances, clothing, and valuables, against damage or theft.

Many insurers offer combined home (building) and contents insurance, which is popular with homeowners.

If you rent in Australia, your landlord is responsible for building insurance, but you can take out contents insurance to protect your own belongings.

Home insurance usually doesn’t cover damage caused by general wear and tear, poor maintenance, or negligence. For contents insurance, you can often pay extra to cover items you take outside your home – like laptops, jewellery, or bicycles.

Home insurance isn’t a legal requirement in Australia. However, most mortgage lenders will require you to have building insurance before approving a home loan.

Premium costs depend on things like the value of your property, level of cover, location, claims history, and security features on your home. In 2025, average annual costs are:

• Building insurance – between AUD 1,458 and AUD 4,197
• Contents insurance – between AUD 348 and AUD 619
• Combined insurance – between AUD 1,646 and AUD 4,512

Life Insurance

Life insurance in Australia provides a lump sum payment to chosen beneficiaries if you die or are diagnosed with a terminal illness.

The most common type is term life insurance, which covers you for a fixed period (usually between 10 and 30 years) while you pay regular premiums. The payout can help cover living costs for your family, outstanding debts such as mortgage payments, and funeral expenses.

Life insurance isn’t mandatory in Australia. However, many people automatically receive some basic cover through their superannuation fund (super fund). This type of cover is often limited, so many Australians choose to buy extra insurance to make sure their families are fully protected.

Most policies exclude claims related to suicide, high-risk activities, and undisclosed underlying health conditions. Some policies also have residency requirements, so it’s important to check with your insurer if you plan to move overseas.

Premiums depend on factors like your age, health, lifestyle, smoking status, and the amount and length of cover. According to Finder (2025), average monthly life insurance premiums in Australia range from AUD 25.25 for a non-smoking female aged 25, to AUD 418.69 for a male 55-year-old smoker.

Income Protection Insurance

Income protection insurance (sometimes called disability insurance or personal accident insurance) helps replace part of your income if you can’t work because of illness or injury.

Most policies pay up to 70–75% of your regular income while you’re unable to work. The payments can continue for a set period – such as 1, 2, or 5 years – or until you reach age 65, depending on your policy.

When you make a claim, there’s a waiting period before payments begin. This period usually ranges from 14 to 90 days, though some policies may have longer waits. Choosing a longer waiting period generally reduces your premium cost.

Policies typically exclude self-inflicted injuries and pre-existing medical conditions.

Premiums depend on your age, gender, health, lifestyle, and occupation. The 2025 average for an AUD 3,000 per month benefit is just over AUD 48.

Travel Insurance

If you plan on travelling abroad, travel insurance can help protect you against trip cancellations, lost luggage, and medical emergencies overseas. The cost depends on the level you choose.

Common exclusions include non-emergency medical treatment and losses caused by negligence (for example, leaving luggage unattended).

If you already have private health insurance, check whether it includes international coverage for emergency medical care to avoid paying for duplicate protection.

Pet Insurance

If you have a pet in Australia, pet insurance can help cover unexpected costs, such as vet bills if your pet becomes sick or injured. Most policies cover cats and dogs, while some also include smaller animals like rabbits or guinea pigs. If you own horses or exotic pets, you may need a specialist insurer.

Common types of pet insurance are:

• Accident-only: Covers injuries caused by accidents, such as car accidents or bites.
• Comprehensive: Covers both accidents and a wide range of illnesses.
• Wellness: Helps pay for regular check-ups, vaccinations, and preventative treatments.

Most policies don’t cover pre-existing medical conditions or cosmetic procedures.

According to Compare The Market (2024), pet insurance typically costs between AUD 25 and AUD 80 per month, depending on the pet, breed, and level of cover.

Business Insurance

If you run a business in Australia, there are various forms of insurance you’ll need to consider. Aside from Workers’ Compensation Insurance if you have employees, you will need CTP insurance if your business involves the use of vehicles.

Other forms of insurance for businesses include:

• Public liability: Covers the business if a member of the public is injured or their property is damaged on their premises.
• Professional indemnity: Covers losses or damages to clients as a result of professional errors or negligence.
• Property: Covers damage to commercial buildings, contents, and stock from the likes of fire, storm damage, or vandalism.
• Business interruption: Compensates for lost income or profits caused by disruptions from an insured event (e.g. fire or natural disaster).

Some of these insurances may be required by law, depending on the nature of the business.

How to choose an insurance company in Australia

Factors to consider in addition to premium costs when choosing Australian insurance include::

• Flexibility: Can you tailor the policy to meet your needs, ensuring that essential coverage isn’t excluded and you’re not paying for benefits you don’t need?
• Excess options: Many forms of insurance include an excess (or deductible), which is an amount you must pay when you make a claim before the insurance applies. Can you adjust the deductible to lower or raise your premiums?
• Claims process: How long do claims take? Does the insurer deal with payments directly or do you need to pay upfront and request a reimbursement?
• Customer reviews: How does the company rate on independent review platforms or customer satisfaction surveys?
• Overseas coverage: Is the policy still valid if you travel or move abroad?
• Ethics and sustainability: How does the company perform on corporate responsibility and sustainability rankings, such as CSRHub or Corporate Knights?

Tools for comparing insurance in Australia

• Compare the Market – compare various types of insurance policies, including car, home, and life insurance.
• PrivateHealth.gov.au – government health insurance comparison tool.

Making insurance claims

The claims process in Australia varies between insurers, but you’ll usually have to submit a claim form online, by phone, or by mail.

Typically, you’ll need to provide your policy number and give details such as the date, location, and nature of the incident. You may also need to submit supporting documents, such as photos, receipts, or police reports.

Claims are usually resolved within 2-8 weeks, although complex cases can take longer. The General Insurance Code of Practice allows insurers up to four months to settle standard claims, extended to 12 months for complex claims.

If you’re unhappy with how your claim is handled, contact your insurer first. If the issue isn’t resolved, you can make a complaint to the Australian Financial Complaints Authority (AFCA).

For more information on how to make a complaint, visit the Moneysmart website.

If you’re an expat in the Australia making a claim on an international insurance policy, you can use a Wise multi-currency account to receive your payout. The account lets you receive payments in 20+ currencies. You can also send payments to accounts in 140+ countries with Wise. International transfers are quick and low-cost, using the mid-market exchange rate with no hidden fees.

Glossary of Australian insurance terminology

Name	Description
Broker	Specialist who works for you to find the most appropriate insurance product to meet your needs.
Excess (or deductible)	Amount of loss or damage that you must pay before your insurance policy starts to apply.
No-claim bonus	Discount sometimes available if you don’t make any insurance claims for a few years.
Premium	Amount of money you pay to your insurance company for your insurance policy.
Risk	Exposure to a specific threat, hazard, or peril.

Useful resources

• Australian Securities and Investments Commission (ASIC) – issues licenses and monitors financial service providers to protect consumers.
• Moneysmart – government financial advice website with information on insurance.
• General Insurance Code of Practice