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Written by
iSelect Editorial TeamBelow are the four main types of Car Insurance, as well as a breakdown of what’s typically covered by each policy.
|
Car Insurance type |
Damage to your car |
Damage to another person’s car or property |
Damage or loss caused by theft |
Injuries or death to others in an accident |
|
No |
No |
No |
Yes |
|
|
No |
Yes |
No |
No (but covered by CTP) |
|
|
No |
Yes |
Yes |
No (but covered by CTP) |
|
|
Yes |
Yes |
Yes |
No (but covered by CTP) |
This table gives you a broad outline of what each policy covers, from Compulsory Third Party (green slip in NSW) through to Comprehensive cover. Compulsory Third Party is generally included in your registration fee, but it would be wise to pay for more cover than that. Comprehensive cover provides the highest level of protection, but can also come with a higher price tag. We’ll go into more detail on each cover, below.
Moneysmart defines Comprehensive Car Insurance simply as ‘Cover that provides the policy holder with broad protection. For example, Comprehensive Car Insurance can help cover loss or damage to your car and damage you may accidentally cause to other people’s property.’
In more detail, Comprehensive Car Insurance can cover you for accidental damage to other people’s property and vehicles, as well as damage to your vehicle, even if you’re at fault.
Comprehensive policies often give you a range of options for things like hire cars while your car is being repaired and windscreen replacement, and you may also have the choice of insuring for ‘market value’ or ‘agreed value’. Exact cover and the optional extras available vary between insurers, so it’s worth checking these before you take out a policy.
Similarly, there will be exclusions to your cover. Often, drivers may not automatically be covered unless they are listed on your policy. Where drivers do not meet the insurer’s underwriting criteria they also may not be covered. Damage caused while driving drunk or under the influence of drugs won’t be insured. Again, check before you take out a policy and know what you’re covered for.
Third Party Fire and Theft helps cover accidental damage to other people’s property or vehicles where you are at fault. It also covers loss or damage caused to your vehicle or property by fire or theft.
TPP Car Insurance is the same as TPF&T without the cover for loss or damage to your car through fire and theft. So, it covers any accidental damage you cause to another person’s property in a car accident which is your fault. TPP insurance is generally the cheapest Car Insurance option available.
TPP can help cover you whether you smash into a third-hand rust bucket or a brand-new Aston Martin. Again, you’ll have to check with your individual insurer to make sure that you’re covered for what you want.
CTP, or ‘green slip’ in NSW, is the compulsory third party insurance that is sometimes included in your vehicle registration costs, depending on your State. It will only insure you against costs relating to injuries or deaths of other people, caused by you in an at fault accident. This includes other drivers, passengers, pedestrians, motorcyclists etc. Basically, anybody who isn’t you, who is injured or killed in an accident caused by your driving.
But CTP does NOT cover any damage to any vehicle, and that’s why it’s worth considering taking out further insurance. Otherwise, in an accident, it could be you picking up a huge repair bill.
CTP cover varies between states, so see the relevant links below for more detailed CTP/Green Slip information for your state.
Insurance excess is the amount you may have to pay towards the costs, if you make a claim. So, if your excess is $500, then you will have to pay that amount towards any repairs or replacement and the insurance company make up the difference in an eligible claim.
Generally, an excess is payable where you are at fault, or the cost is not recoverable from the at fault party.
There are two main types of excess:
If your car is written-off, you can either be paid an agreed value or market value, depending on the choice you made when you took the policy out.
Many insurers will allow you to choose between a ‘market value’ and an‘ agreed value’, but typically ‘agreed value’ policies will be more expensive. Check with your insurer for specific details, costs and options.
Every insurer has their own range of optional extras which you may wish to add to your policy. There are also certain things you can do to help tailor the cost of the policy to your budget.
Not all extras are offered by all insurers, so it pays to check your individual policy options. Here are some popular extras which you can choose to pay extra for:
Ask your insurance provider what optional extras they offer before you take out a policy.
These choices and discounts vary between insurers, so it’s wise to ask what’s available and how you can save. Some popular options are:
So, are you ready to get insured? Before you do that, here are iSelect’s top tips for buying Car Insurance:
It’s not that hard to get suitable protection for you and your family, especially when you use iSelect’s Car Insurance comparison service.* We compare policies, helping you see what premiums, options and benefits each policy offers
It should save you time and could even help you save money. Compare policies online from our range of providers, or call our friendly team on 13 19 20.
Last updated: 08/02/2022
