The Three Main Cover Levels
- Comprehensive — covers your own car (accident, fire, theft, weather) plus damage you cause to other people's vehicles and property
- Third-party fire and theft — covers damage to others' property, plus fire or theft of your own car, but not accident damage to your own vehicle
- Third-party property damage — covers only damage you cause to someone else's car or property; your own car is not covered at all
Why the Price Gap Is So Large
Comprehensive averages $1,362/year versus $522/year for third-party property damage — nearly a $840 difference. That gap reflects the insurer's exposure: comprehensive covers your own vehicle's value, which for a newer or more expensive car can run into tens of thousands of dollars, while third-party only ever pays out for damage to someone else's property.
When Third-Party Makes Sense
Third-party cover tends to make more financial sense for an older car worth only a few thousand dollars — if the payout for a total loss would barely cover the excess, comprehensive's extra cost may not be worth it. It's a straightforward math problem: compare your car's actual market value against the annual premium difference.
When Comprehensive Is Worth It
For any car with real resale value, or one still being financed (most lenders require comprehensive cover as a loan condition), comprehensive is almost always the better choice — a single at-fault accident without it means paying for your own repairs entirely out of pocket.
Don't Forget CTP
Whichever level you choose, Compulsory Third Party (CTP) insurance for injury to other people is separate again, and legally required in every state regardless of your comprehensive or third-party choice.
This page is for educational purposes and isn't personalised financial advice. Premiums, terms and eligibility vary by insurer, state and individual circumstances — always check the Product Disclosure Statement (PDS) before buying.