Comprehensive vs Third Party Car Insurance in Australia

Steve Oke Chapchap Market No Comments

Hi

Comprehensive vs Third Party Car Insurance

A great car insurance policy will give you peace of mind wherever you go, but how do you know which option is right for you?

Here’s a look at the major types of Comprehensive and Third Party car insurance policies and how they protect you.

What’s the Difference?

Comprehensive car insurance:

Comprehensive car insurance provides total protection for your vehicle if you are involved in an accident and can significantly reduce your out-of-pocket expenses if you ever need to make a claim.

It covers:

• The cost of repairs or replacement of your car due to accidents, theft, fire or vandalism.
• The cost of repairs to a third party’s vehicle or property due to a collision where you’re at fault.
• A wide range of handy options – including windshield cover, roadside service and car hire – at an additional cost.

Third Party Fire and Theft cover:

Third Party Fire and Theft insurance offers some protection for your car, while paying for damage to other people’s property.

It covers:

• Damage to another person’s car or property if you cause a collision.
• Fire and theft protection for your own vehicle.
• Some insurers may offer a limited amount of cover if you’re involved in a no-fault accident with an uninsured vehicle.

It doesn’t cover:

• Damage to your car regardless of fault.

Third Party Property cover:

Third Party Property cover is a no-frills insurance option.

It covers:

• Damage you cause to another person’s vehicle or property.
• Some insurers may provide a limited amount of cover for the other car if you’re involved in a no-fault accident with an uninsured vehicle.

It doesn’t cover:

• Your car against theft, fire or damage.

CTP (Compulsory Third Party) insurance:

In all Australian states you need to have CTP insurance before you can register your car with your local road and transport authority. Some states include the price of this in your car’s registration. Drivers in NSW, SA and QLD are free to choose their own CTP insurance provider.

It covers:

• Medical bills and personal injury liability if you cause an accident, including injuries to yourself, passengers, other drivers and people on the road.

It doesn’t cover:

• Damage to your car or another person’s property in the event of an accident, which is why you need to purchase additional Comprehensive or Third Party insurance on top of CTP.