Comprehensive vs third party car insurance
Third party car insurance covers you for damage to someone else's car or property but not your own, unlike comprehensive car insurance.
![Image: Supplied Car Insurance](https://www.finder.com.au/finder-au/wp-uploads/2017/10/Car_Insurance_Supplied_1800x1000-1.jpg)
There are two main types of car insurance options: comprehensive car insurance and third party car insurance. Comprehensive car insurance covers you for damage to someone else's car or property and your own, whereas third party is generally cheaper because you'll be out of pocket if something happens to your car.
Not sure whether you should be opting for comprehensive or a third party policy? Here are the core differences between the two:
As the name suggests, comprehensive car insurance is the most extensive car insurance option available. It can cover the cost of damage to your car caused by accidents, theft, weather events (such as storms, fires and hail damage) and more. It also protects you financially if you damage someone else's car or property. On top of this, comprehensive car insurance can cover you for:
While comprehensive car insurance covers you for damage to your car and damage to someone else's car or property, third party property insurance only covers you for the latter. If your car is stolen, damaged in an accident, fire, or weather event, you'll have to pay for repairs or a car replacement yourself.
Keep in mind that third party car insurance is different to compulsory third party (CTP) insurance, sometimes referred to as Green Slip. CTP is a legal requirement and covers you for liability. In other words, if you or anyone else who drives your vehicle injures someone in a motor accident, it covers you for the legal costs.
That depends on what you're looking for. Here's a breakdown of who comprehensive car insurance and third party car insurance might be suitable for.
The cost difference can vary a lot depending on the provider you use, so it's definitely worth shopping around. To make deciding easier, check out the comparison table below.
Brand | Third Party Only | Comprehensive | Apply |
---|---|---|---|
![]() | $234.02 | $388.32 | More info |
![]() | $266.37 | $519.37 | More info |
![]() | $353.01 | $723.17 | More info |
![]() | $236.85 | $725.64 | Get quote |
![]() | $246.32 | $754.67 | More info |
![]() | $360.58 | $836.07 | More info |
![]() | $580.24 | $939.55 | More info |
![]() | $811.00 | $1,315.68 | More info |
![]() | $246.63 | $1,633.59 | More info |
![]() | $335.97 | $2,054.44 | Get quote |
To determine this estimated cost, we sourced quotes using this profile:
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, the amount of cover you need, plus more. Be sure to read the PDS to find cover that suits you.
It might make sense to downgrade your car insurance for something more affordable, but before you do so, consider the following questions.
There are two third party policies you need to know about. These are:
Third party property damage car insurance covers damage you cause to someone else's vehicle or property. So if you crash into someone's new car, your insurance will pay the repair costs. But that's about all it covers you for.
Third party fire and theft is usually more expensive than third party property because it gives your own car some protection. A typical third party fire and theft policy covers you for:
Third party fire and theft can be a good intermediate option if you don't want to pay the premiums for full comprehensive cover but want some protection for your own car.
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My wife, a pedestrian, was hit by a car in a hit and run accident. The driver has been found by the police and admits to the incident. Is it best to claim off CTP or his fully comprehensive insurance?
Hi Anthony,
Thank you for getting in touch with finder.
So sorry to hear about your wife.
The driver’s CTP should cover your wife for ongoing medical expenses and loss of income. His comprehensive insurance is only used for damage to his own car, so won’t be of much help for you or your wife.
If you have their insurance details, get in touch with their insurer and let them know what’s happened – you might need the police report for further evidence.
If you’re unsure who their insurer is, get in touch with your state’s insurance regulatory authority and they can follow this up for you.
Best of luck.
Please feel free to reach out to us if you have any other enquiries.
Thank you and have a wonderful day!
Cheers,
Jeni