About Green Slips: NSW's Simple Vehicle Insurance System
At first glance, New South Wales' vehicle insurance system can seem somewhat complicated. Even a small and rarely used car needs to be insured for basic accidents and damage, giving car owners a payment that's rarely appreciated. While it seems somewhat draconian and difficult to work with, it makes sense as a system once you gain an understanding of how the NSW motoring system works.
Known colloquially (and officially, occasionally) as 'green slips', the compulsory insurance system in New South Wales is fairly simple to comply with. All cars need to be registered with third-party insurers, allowing drivers to use public roads without fear of being unable to cover costs should an accident occur. It's a security-based system, and for most NSW residents, one that's very efficient.
Private vehicles such as cars, motorcycles, and SUVs are unable to be registered without insurance, forcing drivers to apply for a policy before they're able to use public roads. The green slip itself is a generic term for the insurance policy, named as it is because most policy stickers are written using a green sheet of paper. There's no green slip itself involved – just a generic term for vehicle insurance.
Fortunately, the rates for vehicle insurance are fairly modest in New South Wales, reflecting on both the state's reasonable level of insurance competition and the results of its green slip scheme. A small vehicle can be insured for a moderate three-figure sum annually, while a more expensive car or bike could cost several thousand dollars to register every year.
This is for comprehensive insurance, which covers both the vehicle in question and any third-party vehicles in the event of an accident. Third-party insurance is typically less expensive, and is a good option for drivers aiming to get on the road as cheaply as possible. It's worth noting, however, that it will not cover your own vehicle for damaged sustained in a crash that was your fault.
A green slip also provides compensation for personal damage sustained in an accident. Pedestrians and other involved parties are also covered under the green slip scheme for healthcare fees. It does not, however, cover all healthcare fees for drivers that were breaking the law at the time of a crash or major road accident. Theft, damage, and other potential costs are covered in individual policies.
Purchasing a green slip is far from complicated. Would-be drivers can order their green slip online using a comparison website or government service, or through a local MAA outlet. Most insurance providers will also complete the green slip scheme with their customers, allowing vehicle owners to simplify the process and get on the road as soon as possible under the green slip insurance scheme.
If you're eager to get driving around New South Wales, it's important to complete the compulsory green slip process as soon as possible. Although it may seem complex and inconvenient, the entire process can be completed within a day or two. Get out there, get your policy, and get driving on a New South Wales highway as quickly and efficiently as possible.