Comprehensive vs Third Party Car Insurance: Which Cover Do You Need?
Comprehensive, Third Party Property Fire and Theft, or Third Party Property Only? A plain-English comparison of Australia's car insurance levels.
Key takeaways
- CTP is compulsory and only covers injury to people. It never covers vehicle damage.
- Comprehensive is the only level that covers damage to your own car in an at-fault accident.
- Third Party Property Fire and Theft adds fire and theft cover for your own car at a lower cost.
- The right level depends on your car's value, how you use it and what you could afford to lose.
Every registered vehicle in Australia must have Compulsory Third Party (CTP) insurance. CTP covers injury or death to other people if your car causes an accident. It does not cover damage to any vehicle or property, including your own. That is where the three optional levels of car insurance come in.
The three levels of car insurance
Comprehensive Car Insurance
Comprehensive is the highest level of cover. It protects your own vehicle against accident damage, theft, attempted theft, vandalism, fire, and weather events such as hail, storm and flood. It also covers damage your car causes to other people's vehicles and property. Many comprehensive policies add benefits such as a hire car after a no-fault accident, towing, and new car replacement for eligible vehicles.
Third Party Property, Fire and Theft
This mid-level option covers damage your car causes to other people's property, plus limited cover for your own car if it is stolen or damaged by fire. It does not cover accident damage to your own car. It suits drivers who want affordable cover with protection against the two big risks of fire and theft.
Third Party Property Only
The most basic optional cover. It pays for damage your car causes to someone else's vehicle or property, which protects you from potentially large liability claims. It does not cover your own vehicle at all, which makes it common for older or low-value cars.
How to choose the right level
Ask yourself four questions:
- What is the car worth, and could I afford to replace it tomorrow?
- How much do I drive, and where? City driving and long commutes increase exposure.
- Is the car financed? Lenders usually require comprehensive cover.
- What excess am I comfortable paying if I claim?
If the answer to the first question is no, comprehensive cover is usually the safer choice. If the car is worth little and you could absorb the loss, third party property cover keeps you protected against the claims that could really hurt: damage to someone else's expensive car or property.
What a broker adds
Premiums for the same car can vary widely between insurers, and so can the details: excess structures, hire car limits, choice of repairer and how agreed or market value is calculated. Kasana Insurance Brokers compares these side by side and explains what you are actually buying, then supports you if you ever need to claim.
Frequently asked questions
Does third party insurance cover my own car?
Third Party Property Only does not cover damage to your own vehicle. Third Party Property, Fire and Theft adds limited cover for your own car if it is stolen or damaged by fire, but not for accident damage.
Is comprehensive car insurance worth it for an older car?
It depends on the car's value and what you could afford to lose. For a low-value car, third party property cover may be enough. For a car you rely on and could not easily replace, comprehensive cover is usually worth considering.
What is a Green Slip?
Green Slip is the New South Wales name for Compulsory Third Party (CTP) insurance, which covers injury or death to other people caused by your vehicle.
Related cover
This article provides general information only and does not take into account your objectives, financial situation or needs. Consider the relevant Product Disclosure Statement and speak with a broker before acquiring any insurance product.
