If you’re trying to choose the right car insurance then understanding the differences between comprehensive and third party car insurance is a great place to start.
Different Types of Car Insurance at a Glance
At its most basic, these are the different types of car insurance and their cover level.
Type of insurance
Damage to your car
Damage to other people's property
Theft of your car
|Third Party Property Only||Uninsured third party who is at fault||✓||-|
|Third Party Property, Fire and Theft||Fire theft and at fault uninsured driver only||✓||✓|
What’s the difference between comprehensive and third party car insurance?
The simple answer is that Third Party Car Insurance covers other peoples' cars if you're at fault in an accident, whereas Comprehensive Car Insurance also covers the damage to your own car.
In other words, Comprehensive Car Insurance covers loss or damage to your car due to an accident (regardless of who’s at fault) or in response to an insured event including severe weather, fire, vandalism, and theft. Damage your car causes to other people’s property is also covered (up to $20 million), acting as legal liability.
Whereas Third Party Property Only Car Insurance only covers up to $20 million worth of damage to someone else’s car or other property, acting as legal liability. Additionally, Third Party Car Insurance does not cover damage to your car (unless it’s damaged in a no-fault accident with an uninsured driver, to which further limits will apply).
Comprehensive Car Insurance
While you may pay more for Comprehensive Car Insurance, this level of cover includes the most benefits, and will hopefully offer the most peace of mind. The additional benefits under this level of cover aim to support you and make things easier after an accident or stressful event.
These additional benefits include (Limits apply) :
Towing your car
Replacing your car
Providing a hire car
Replacing stolen keys or a remote
Covering damage caused by an uninsured driver
Covering damage to your caravan or trailer in a collision
Covering damage or theft of personal effects and car seats/baby capsules in your car
Providing emergency transport and accommodation (if your damaged car is undriveable)
This type of car insurance also includes several optional benefits including a hire car (if we agree to pay your at-fault claim), a reduced window glass excess, and your choice of repairer if you have a claim with us.
Some other features are also included:
Authorised repairs are guaranteed for as long as you own the car
If you want, you can increase your Basic Excess, and this can reduce your premium
No-claim discounts are preserved when an identified third party is at fault as a result of a car accident
Third Party Property Only Car Insurance
Apart from liability insurance, the only other included benefit for Third Party Property Only Car Insurance is cover for damage caused by an uninsured third party who is at fault for up to $5,000. Keep in mind that this also includes recovery, towing and storage costs, so you may not be covered for everything.
Here are other features included under this type of cover:
You can restrict your policy to drivers over a certain age, the older the drivers the lower the premium (this feature is also included as part of Comprehensive Car Insurance)
No excess is payable when an identified third party is at fault (this feature is also included as part of Comprehensive Car Insurance)
We’ll pay for debris from your car to be removed from the accident scene (this feature is also included as part of Comprehensive Car Insurance)
There is also cover for damage caused to your car by an uninsured third party who is at fault (further limits apply)
Third Party Property, Fire and Theft Car Insurance
Third Party Property, Fire and Theft Car Insurance is a third option that covers loss or damage to your car caused by fire or theft only. It includes car towing for damage caused by fire or theft and also offers a hire car following theft for up to $1,000 and limited usage for up to 14 days.
Although the same benefits and features under this cover are also included under Third Party Property Only Car Insurance, Third Party Property, Fire and Theft Car Insurance is a great option for those who are looking to spend a little bit more and receive a little more coverage in return.
So, how does CTP (Compulsory Third Party) insurance work?
What you should know is that Compulsory Third Party Insurance (CTP) is not the same as Third Party Property Only Car Insurance. CTP is mandatory and covers compensation payments for injuries you (or someone else driving your car) cause to another driver in a motor vehicle accident. While damage to your or others’ vehicles or property is not covered by CTP.
Which level of car insurance is right for you?
Understanding the differences between each level of car insurance will help you choose which option is right for you and save the most money on your car insurance policy. Budget Direct’s Comprehensive Car Insurance, as its name suggests, provides the most protection. It also offers several additional benefits, optional benefits, and features that aren’t included in any other level of cover.
This includes cover for:
Your car’s market value or an agreed value (if we have agreed to this option for your car.)
Loss or damage to your car (regardless of who’s at fault) and the damage your car causes to other people’s vehicles and property
A hire car following a no-fault accident or theft of your car
A new car replacement if your car is written off within two years of original registration or once you’ve driven 40,000km (whichever comes first)
You can find out more about Terms, Conditions, Exclusions and Limits for all these types of cover in our product disclosure statement.
Budget Direct’s Car Insurance offers fortnightly, monthly or yearly premium payments across all levels of car insurance. With a 24/7 online and phone claims service, help is always at your fingertips and saving on car insurance is made easier with 15%^off your first year’s premium for a new car insurance policy purchased online.