Comprehensive vs third party car insurance

Comprehensive car insurance is typically the highest level of cover you can purchase for your vehicle. It includes cover for your own car for the following damages:

• Collision damage regardless of who is at fault
• Storm, flood and hail damage
• Fire and theft damage
• Damage from an uninsured driver
• Loss or damage of personal items in your car.

If you have a new car, comprehensive policies could also include new car replacement cover. This can provide a similar new car replacement if yours is stolen or written off due to an insured event.

There may also be more add-on options available for comprehensive policies, including:

• Choice of repairer
• Windscreen cover
• Accident hire car cover.

Along with covering damages to your own car, comprehensive car insurance covers damages you cause to other people’s property and motor vehicles.

Third Party Fire and Theft policies offer limited cover for your own car, which typically includes:

• Fire damage
• Theft
• Damage from an uninsured driver.

It also covers accidental damage you cause to someone else’s vehicle or property while driving.

Third Party Property Damage generally provides financial protection if you damage other people’s vehicles and property in a car accident.

It is the most basic type of car insurance and typically only covers your own vehicle if an uninsured driver damages it.

Not to be confused with other third party car insurance policies, CTP insurance is compulsory insurance and doesn’t include cover for vehicle and property damages.

It only covers your legal liability for third party injuries and deaths in an at-fault car accident. Depending on where you live, your own injuries could be covered regardless of fault, while some states may exclude at-fault driver injuries.

Every registered vehicle in Australia requires CTP or your state’s equivalent cover (e.g. a Green Slip in NSW).