Australia Insurance Guide
A summary of the main types of insurance worth knowing for foreigners (working holiday, study, migration) living in Australia. It covers the types of health, car, and travel/renters insurance and how to compare and sign up. The information below is general guidance, and actual premiums and cover depend on the insurer, product and your situation. Always check the latest terms in each insurer's Product Disclosure Statement (PDS) and official site before signing up.
Health Insurance (OVHC·OSHC)
Australia often requires foreigners to hold an adequate level of health insurance depending on their visa type. Students usually take OSHC, while working holiday, work and other temporary visa holders generally take OVHC. The requirements differ with your visa conditions, so check your visa guidance first.
Overseas Student Health Cover. The health insurance that student visa (subclass 500) holders generally take, usually required to cover the entire visa period. It covers GP visits, some hospital/emergency and part of prescription medicines.
Overseas Visitors Health Cover. Health insurance for temporary visa holders such as working holiday and work visas. Cover varies a lot by product, so check whether hospital, emergency, ambulance and prescription medicines are included.
Major health insurers
Car Insurance (CTP·Comprehensive)
To drive a vehicle in Australia, third-party personal injury insurance — CTP (Compulsory Third Party, called a 'Green Slip' in some states) — is legally required. Other insurance is optional, but it's usual to consider extra cover to be protected for the other party's and your own vehicle damage in an accident. How CTP runs and its price differ by state (NSW, VIC, QLD, etc.).
Types of car insurance
| Type | Main cover (general example) |
|---|---|
| CTP (Green Slip) | Legally required insurance. Covers compensation for others' injury or death (personal injury) from an accident. It generally does not cover vehicle or property damage. |
| Third Party Property | Third-party property. Covers the other party's vehicle and property damage when you're at fault. It doesn't cover your own vehicle damage. |
| Third Party Fire & Theft | A mid-tier product that, on top of third-party property, also covers some fire and theft damage to your own vehicle. |
| Comprehensive | Comprehensive insurance. Covers the other party's damage as well as broad cover for accident, fire and theft damage to your own vehicle. The premium is the highest, but the cover is the widest. |
Travel & Renters (Tenant) Insurance
Travel insurance
Early after arriving in Australia or for a short trip, you might consider travel insurance covering medical costs, baggage and schedule changes. However, for long-term residents, residential health insurance like OVHC or OSHC is often more suitable than travel insurance.
- Medical cost cover for sudden illness or injury while staying overseas (in Australia)
- Cover for lost or stolen baggage and flight delays/cancellations
- Risky sports and pre-existing conditions are often excluded, so check the policy wording
Comparison & Sign-up Tips
Insurance should be compared not just on price but also cover, waiting periods, excess and exclusions. Using comparison sites run by government or independent bodies and each insurer's quote tool helps.
What to check when comparing and signing up
- First check the type of insurance and minimum cover level your visa requires
- Don't look at the premium alone — also compare cover, Excess and waiting periods
- Check exclusions and pre-existing condition/licence terms carefully in the policy wording
Insurance Terms Worth Knowing
| Term | Meaning |
|---|---|
| Premium | Premium. The amount you pay regularly (monthly/yearly) to keep the insurance. |
| Excess | Excess. The amount the policyholder pays first when making a claim. The higher the Excess, the lower the premium tends to be. |
| Waiting Period | Waiting period. The period you must wait after signing up before you can receive certain cover (especially in health insurance). |
| Claim | Claim. The process of asking the insurer for compensation when a covered event such as an accident or illness occurs. |
| PDS (Product Disclosure Statement) | Product Disclosure Statement. The official document setting out cover, exclusions and terms, which you must read before signing up. |
Useful Links (Official & Public Bodies)
- privatehealth.gov.au(opens in a new window)
Government-run private health insurance comparison site — compare cover items and insurers
- Department of Health (Overseas cover)(opens in a new window)
Australian Department of Health — guidance on overseas visitor and student health insurance (OVHC·OSHC)
- MoneySmart (ASIC)(opens in a new window)
ASIC's MoneySmart — neutral consumer guidance on types of insurance and how to choose
- (opens in a new window)
Insurance Deep-Dive — From Visa Conditions and State Differences to Claims and Transition Timelines
This guide goes beyond the basics of each insurance type to cover the situations you'll actually run into: how to read your visa conditions, how car insurance works in each state, making claims and handling disputes, and when to switch cover as your stay in Australia progresses. Specific conditions and prices change all the time, so always confirm the final details through each agency's and insurer's official information.
Health Insurance Roadmap by Visa Type
Check Condition 8501 on Your Visa Grant Notice
Many temporary visas can carry condition 8501, which requires you to 'maintain adequate health insurance'. Check the Conditions section of the Visa Grant Notice you receive when your visa is approved — if you've misplaced it, you can look it up for free through the Department of Home Affairs' VEVO (Visa Entitlement Verification Online). A gap in cover can amount to a breach of your visa conditions, so it's safest to put both your insurance expiry date and your visa expiry date in your calendar.
Choosing Between OSHC and OVHC
The usual pairing is OSHC for the student visa (subclass 500) and OVHC for other temporary visas — work, graduate, training and so on (482, 485, 407). In particular, when you move from a student visa to the graduate visa (485), your OSHC cover ends, so you'll often need to switch to OVHC, and proof of cover may be required when you lodge the visa application. To make sure cover doesn't drop out during any bridging visa period, check with your insurer in advance whether your existing policy can be extended.