This is the only level of car insurance that covers damage to your own car as well as other people's vehicles and property. Additionally, you'll be covered if your car is damaged by hail, fire or storm or if it's stolen or vandalised. It can also help pay for key replacements, a hire car if yours is stolen and more.
This level of car insurance covers costs if you damage someone else's vehicle or property and can pay to repair or replace your car if it's damaged by fire or stolen. However, it doesn't cover you for damage to your own car due to an accident, storm or flood.
Often called Green Slip insurance, compulsory third party car insurance is mandatory for every registered driver in Australia. In many states, it's included in your car registration. It helps cover compensation costs, such as hospital expenses, if you kill or injure someone in a car accident. It won't cover your car or someone else's car.
Why compare car insurance?
In a cost of living crisis, it pays to compare car insurance to make sure you're not paying more than you need to. Prices can differ a lot – in fact, here's a real-life example of 2 comprehensive car insurance policies that share similar features, yet are priced $245 apart.
Policy A
Policy B
Excess
$850
$800/$850
Market or agreed value
Market value (insurer decides payout figure on date of claim)
Market value (insurer decides payout figure on date of claim)
Hire car after theft
Yes – up to $75/day (max 14 days)
Yes – up to $75/day (max 14 days)
New car replacement
Yes – if written off in first 2 years
Yes – if written off in first 2 years
Personal effects
$500
$500
Roadside assistance
Optional extra (not included in this premium)
Optional extra (not included in this premium)
Average annual cost
$1,216
$971.72 ($244.28 less)
Real people, real savings
How Sarah saved $250 on her car insurance
"I recently went to renew my comprehensive car insurance policy when I noticed the cost had drastically increased from $598 to $800. I decided to compare some other options and now, we've found the same level of cover with a reputable and well-known insurer for just $550. That's $250 in savings!"
Saving without having to switch
"When it came time to renew, I took 20–30 minutes to research other providers, put together a few quotes and went back to my current insurer to see if they'd negotiate. They were more than happy to compete and marked down their initial price to one that justified staying with them. It's really surprising how much you can save when you only need to put a small amount of time aside to compare your insurance options."
Saving $1,000
"My car insurance was up for renewal with a total increase of $537. I compared insurers on Finder and received a quote with comparable cover to my existing policy for $1,000 less. I made a few tweaks but ultimately, the policy covers everything I need and it’s way more affordable."
Car insurance companies will need to know your name, address, age and gender. This is because where you live, how old you are and whether you're male or female determines how at risk of an accident you are. High crime areas, young drivers and males are all typically charged higher premiums due to their risk profile.
2. Driver history
This includes things like if and when you've had to make a claim before and for what reason, how many demerit points you've got and how long you've held insurance for (if at all). Again, this determines your risk profile. For example, a driver with multiple speeding tickets or a history of at-fault accident claims may be seen as riskier to insure.
3. Car details
This will include the make, model, colour, exisiting damages and modifications. Additionally, insurers will want to know if the car is used for private or business use, the estimated kilometres you'll travel annually and if you've got a car loan. All of this will help insurers determine the value of the car.
4. Insurance details
You'll need to know level of coverage you want, what excess you're willing to pay and if you want to add on any optional extras. This lets the insurer accurately estimate the cost of your premium.
Don't pay the loyalty tax
A Finder survey of 933 drivers found that 55% of people have noticed an increase in their car insurance premium over the last 12 months. Compare car insurance to find a better deal.
What is car insurance?
Car insurance is designed to protect you financially if your car is involved in an accident, is stolen, is damaged or causes damage to another person, vehicle or property.
There are 4 levels of car insurance. Compulsory third party (CTP) insurance is mandatory in Australia. This insurance only covers injuries to other people and legal costs. However, more comprehensive policies can also pay for expenses including repairs, replacement costs and third-party damage as well.
What does car insurance cover?
Your car insurance coverage will vary based on the level of cover you've purchased and who the provider is. Comprehensive car insurance is the highest level of cover and may cover you for things such as damage to your own vehicle, storm damage and theft. Third party policies may cover you for damage to someone else's vehicle but not your own. You can use the table below to understand the different levels of cover and what may be included in each.
What's included in car insurance?
The table below outlines the differences between the 4 types of car insurance you can get in Australia.
Car insurance benefits
CTP/Green Slip
Third party property damage
Third party fire and theft
Comprehensive
Damage to your own vehicle
No
No
No
Yes
Damage to someone else's vehicle (third party property)
No
Yes (for example, up to $20 million)
Yes (for example, up to $20 million)
Yes (for example, up to $20 million)
Weather events (storm, flood, hail)
No
No
No
Yes
Theft
No
No
Yes
Yes
Hire car after theft
No
Sometimes optional
Sometimes optional
Yes (for example, $70 per day for 14 days)
Fire
No
No
Yes
Yes
Personal effects
No
No
No
Yes (for example, up to $1,000)
Emergency transport/accommodation
No
No
No
Yes (for example, $100 per day, $900 in total)
Towing
No
Sometimes optional
Sometimes optional
Yes
Key replacement
No
No
No
Yes (for example, up to $1,000)
Death benefit
No
Yes
Yes
Yes
Legal liability for injuries or death to other people
"Look around for insurers who offer sign-up discounts – this can be a great way to save! Often, the sign-up discounts will only be available if you're a new customer but that's typically no problem if you're looking at switching providers. Some offer up to 15% off which can help you save around $100 in some cases."
"If you like the look of a specific policy but it's too expensive for you, check who the underwriter is. Brands with shared underwriters have identical policies but some brands are cheaper than others. This means you can enjoy the same policy at a more affordable price point. You can find a policy's underwriter with a simple Google search or look at the product disclosure statement."
"Good to know – if your windscreen is broken and that's the only thing that's been damaged, it's not always worth making an insurance claim. This is because your excess is usually more than the cost of the repairs. To avoid this, lots of insurers let you upgrade your cover to include no-excess windscreen cover. It'll usually cost you a couple more bucks a month which is substantially cheaper than paying for the repairs yourself."
How to save money on car insurance
Consider a pay-as-you-drive car insurance policy
If you don't use your car that often, it can be much cheaper to get pay-as-you-drive car insurance. Alternatively, some insurers, including Budget Direct,Youi and Woolworths, reward you with cheaper premiums the less you drive. For example, if you drive less than 5,000km per year, you could save over $300 annually.
Take advantage of sign-up offers
Car insurers will often have an online sign up discount for new customers. This could be in the form of 15% off or $50 off.
Opt for fewer features
If you're after a cheap car insurance policy that covers the essentials, opt for a budget car insurer like Bingle. Other insurers cost more because they come with additional benefits such as cover for stolen keys, cover for personal belongings and cover for a hire car if yours is stolen.
Increase your excess
You have to pay an excess when you make a claim on your car insurance. Choosing a higher excess when you get a quote will lower your car insurance premiums. However, it can make claiming for smaller events pointless – for example, if you have around $1,000 worth of damage but need to pay a $1,000 excess.
Pay annually
Most car insurers will charge you at least $200 less if you're able to pay for the full year instead of monthly.
Compare our car insurance award winners
To help you find the best car insurance, Finder's insurance team gathered 1,800+ car insurance quotes from 30 of Australia's car insurers - that's over 90% of the most popular providers. From there, we compared over 814 features and scored them to find our winners.
Winner: Best value car insurance
Budget Direct's comprehensive car insurance policy won this year's Finder Award for best value because:
Its coverage is similar to the 30+ competitors we analysed but Budget Direct is typically cheaper than all of them.
Our 2024 research showed Budget Direct's average policy is cheaper than 26 other popular insurers including QBE, Allianz and NRMA.
Hume Bank's comprehensive car insurance policy won this year's Finder Award for features because:
It includes higher coverage limits than many popular competitors.
It remains comparatively cheap with an average cost of $959 annually. That's $404 cheaper than the overall average cost of car insurance, according to Finder research.
We asked over 5,700 Australians across major states to rate their current car insurance provider. Youi car insurance came in first place nationally because it:
Scored highly for customer service, features and benefits, ease of application and value for money.
An average of 92% of customers across all surveyed states said they would recommend Youi car insurance to a friend.
Why is my car insurance premium so much more expensive than last year?
"This is one of the most common questions we're hearing from customers at the moment. A lot of people are getting to their renewal date and finding that their premiums have gone up by a couple hundred dollars – which really bites at a challenging time like this. In short, this premium increase is due to a few factors: increased parts and repair costs, increasing crime rates, natural disasters and increased claims processing costs. It's a crucial time to compare your car insurance options to see where you can save." Gary Ross Hunter, car insurance specialist.
Compare car insurance by state
Finder sourced 1,800+ quotes across over 30 different providers to help you compare car insurance in your state. The providers listed in the table below were the top 5 cheapest of the providers researched and reflect the estimated annual cost based on the profile used. Keep in mind, your own cost will vary depending on your personal circumstances and it's always best to compare a range of providers.
We didn't include quotes for NT and ACT because the sample size was too small.
To determine these average costs for NSW, QLD, SA, TAS, VIC and WA, we sourced over 1,000 quotes from 30+ policies using 36 driver profiles across different ages, genders and locations. The pricing above reflects the average of these per state. We have displayed the top 5 cheapest providers for the state, as per the research. Please note, while we’ve tried to include as many providers as possible, this is not a full market comparison. Read more about Finder's car insurance methodology.
Your cost will differ depending on your circumstances. Some things that can affect the cost of your quote include your gender, the type of car you drive, the colour of the car, how long you have been driving and the amount of cover you need.
Be sure to read the product disclosure statement (PDS) to find cover that suits you.
Why you can trust Finder's car insurance experts
We're free
You pay the same as buying directly from the car insurer. Better still, we regularly run exclusive deals that you won't find on any other site – plus, our tables make it easy to compare policies.
We're experts
Our team of car insurance experts have researched and rated dozens of policies as part of our Finder Awards and published 330+ guides to make it easier for you to compare.
We're independent
Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and we work with lots of car insurance brands, making it easier for you to find a good deal.
We're here to help
Since 2014, we've helped 300,000+ people find car insurance by explaining your cover options, simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.
According to Finder’s research of over 30 providers, Bingle offers the cheapest car insurance on average. A comprehensive car insurance policy from Bingle can start from $862. It can be cheaper or more expensive based on what state you live in.
According to 2024 Finder research, on average, a comprehensive car insurance policy costs around $1,363.
When purchasing comprehensive car insurance, the PDS will outline which features are included in your policy and which are available as optional extras. See below for a list of features that are typically included and which will need to be purchased as an extra.
Typically included in your comprehensive policy:
Hire car after theft. Most insurers will cover costs for a hire car (for example, around $50 per day) if your vehicle is stolen. 2023 Finder research shows that Bingle is one of the only insurers to not include this as standard in its comprehensive policy.
New car replacement if written off within a certain timeframe or mileage limit. For example, if your car is written off within the first 2 years of its manufacture or has less than 15,000km on the odometer, then your car insurer will provide you with a new replacement.
Weather events. Your car is insured for damage as a result of fires, storms or floods.
Towing. Our research of over 30 providers indicates all comprehensive policies include towing in their coverage.
Legal liability. All comprehensive policies include this but the amount can vary. For example, Youi will cover up to $20 million in legal liability and Kogan will cover up to $30 million.
Typically offered as a paid extra:
Choice of repairer. If you’d like to choose where your car is repaired after an insured event then you can pay to pick the repairer rather than have your insurer allocate you one. This is handy if you have a modified or classic car and only work with mechanics you know or trust.
Roadside assistance. Our research showed Youi is the only provider to include roadside assistance as part of its comprehensive policy. For all other providers, roadside assistance is a separate product you will need to purchase in addition to car insurance.
Windscreen damage. Windscreen repairs often cost around the same as paying your excess which can make claiming pointless, so some insurers will offer a no excess windscreen option. This is where you pay a slightly higher premium upfront but don’t need to pay an excess when you make a windscreen damage claim.
Hire car after accident. This is an optional extra but almost all policies have parameters around it. For example, the hire car must not exceed a cost of $75 per day. This limit varies by insurer.
Market value is a figure based on what your insurer estimates your car is worth, while agreed value is a specific amount you and your insurer agree on. There's less risk you will be underinsured and out of pocket with agreed value (if you agree to a higher amount) but your premiums may cost more.
Generally, learner drivers will be included under your insurance. However, they may have to pay a larger excess if they have an accident. Remember, a fully licensed driver must be in the passenger seat as an instructor whenever a learner driver is in control of a vehicle.
P-platers can be added as an additional driver to your insurance as long as they drive less than you. Otherwise, they'll need to buy their own car insurance policy.
No. Your car insurance won't cover you if you drive another person's vehicle. It only applies to the car listed on the insurance policy.
No. Car hire companies will typically offer insurance that covers their vehicles, but your standard car insurance policy will not cover you if you damage a hire car while driving it.
Yes, it's highly likely your premium will go up if you make a claim on your car insurance policy.
If your car has been written off in an insured event, then you will receive the market value amount or the agreed value amount that’s outlined in your policy. Some comprehensive policies will replace your car with a new vehicle if your car was declared a write-off within the first 2 years of its first registration or within a certain amount of kilometres.
This depends on your car and your budget. A lot of people go for comprehensive car insurance because it offers the highest level of coverage; it covers your car for damages and other people’s property too. If you want cover for damage to your own car then comprehensive will be the best type of car insurance for you. If you don’t need cover for your own car, then third party property damage or third party fire & theft might be best.
Not typically. If you haven't renewed your car insurance then you aren't covered for the time that it lapsed.
Gary Ross Hunter is an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146).
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