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Comprehensive Insurance
Generally provides the broadest vehicle cover, including eligible damage to your own car and other people's cars or property, plus selected events such as theft, fire and weather damage, subject to the policy.
🚗 CAR INSURANCE — COMING SOONWe’re working on bringing Car Insurance options to Policy Direct. This page currently provides general information to help you understand the main types of cover.
COMING SOONCAR INSURANCE • AUSTRALIA
Car Insurance
Car Insurance
with Policy Direct
Understand the main types of car insurance available in Australia and the differences between cover for your own vehicle, damage to other people's property and compulsory injury insurance.
✓ Comprehensive✓ Third Party Property✓ CTP Explained
Car Insurance options are coming soon.
Policy Direct is currently preparing this section. For now, use this page as a general guide to understanding car insurance in Australia.
Policy Direct is currently preparing this section. For now, use this page as a general guide to understanding car insurance in Australia.
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Understand Your Car Cover OptionsTYPES OF CAR INSURANCE
Four Main Types of Car Insurance
Car insurance products protect against different risks. It is important to understand what each type does — and does not — cover.
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Third Party Property Damage
Generally covers eligible damage your car causes to other people's vehicles or property. It does not generally cover damage to your own car.
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Third Party Fire & Theft
Generally includes Third Party Property Damage cover and adds specified protection for your own vehicle if it is stolen or damaged by fire.
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Compulsory Third Party (CTP)
Compulsory injury insurance associated with vehicle registration. It covers eligible personal injury liabilities, not damage to vehicles or other property. Arrangements differ by state and territory.
IMPORTANT DISTINCTION
CTP Is Not the Same as Third Party Property Insurance
The names can be confusing. Compulsory Third Party (CTP) insurance is concerned with injuries to people. Third Party Property Damage insurance is concerned with damage your vehicle causes to other people's cars or property.
Having CTP does not mean damage you cause to another person's car is insured. CTP arrangements also differ across Australian states and territories. For example, in Victoria the TAC charge forms part of vehicle registration.
Important: Check the rules applying in the state or territory where your vehicle is registered. This page provides general information and is not a substitute for the relevant registration authority or policy documents.
COMPREHENSIVE COVER
What May Comprehensive Car Insurance Include?
Features differ between insurers and policies, but comprehensive policies commonly provide broader protection than third-party-only products.
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Accidental Damage
Eligible accidental damage to your insured vehicle may be covered.
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Third-Party Property
Cover may apply to eligible damage caused to other vehicles or property.
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Theft
Loss or damage associated with theft may be covered under the policy.
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Weather Events
Selected events such as storm or hail may be covered, subject to terms.
CAR VALUE
Agreed Value vs Market Value
How your vehicle is valued can affect the amount payable if it is declared a total loss. Check the actual policy terms and the value shown on your insurance documents.
🤝 Agreed Value
An amount agreed between you and the insurer for the insured vehicle, subject to the policy. Do not assume the amount remains unchanged at renewal.
- Check the value shown each renewal
- Consider whether it reflects your needs
- Premiums can vary with the insured value
📊 Market Value
Generally based on the vehicle's market value around the time of the covered loss, according to the insurer's policy definition and assessment.
- Value can change over time
- Policy definitions matter
- Check how the insurer determines market value
BEFORE CHOOSING COVER
What Can Affect Your Car Insurance?
Insurers assess many factors when determining eligibility, cover and premiums.
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Your Vehicle
Make, model, age, value and modifications can affect the risk assessment.
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Drivers
Driver age, experience, claims history and other factors may affect premiums.
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Where You Live
Where the vehicle is kept and driven can be relevant to pricing and risk.
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Your Excess
The selected excess can affect both your premium and what you contribute to a claim.
Car Insurance FAQs
General information only. Cover, definitions, limits, excesses and exclusions vary between insurers and policies.
1. What are the main types of car insurance in Australia?
The main types are Compulsory Third Party (CTP), Third Party Property Damage, Third Party Property Damage with Fire and Theft, and Comprehensive car insurance.
2. What does Comprehensive car insurance generally cover?
Comprehensive insurance generally provides cover for eligible damage to your own vehicle and damage your vehicle causes to other people's cars or property. It may also cover theft, fire and selected weather events, subject to the policy.
3. What is Third Party Property Damage insurance?
It generally covers eligible damage your vehicle causes to another person's vehicle or property. It does not generally insure damage to your own vehicle.
4. What is Third Party Fire & Theft insurance?
It generally combines Third Party Property Damage insurance with specified cover for your own vehicle if it is stolen or damaged by fire.
5. What is CTP insurance?
Compulsory Third Party insurance provides compulsory cover relating to injuries to people caused by motor vehicles. The exact scheme and how CTP is arranged varies between Australian states and territories.
6. Does CTP cover damage to another person's car?
No. CTP is injury-related cover and does not cover damage to cars or other property. Third Party Property Damage or Comprehensive insurance may provide property-damage protection, depending on the policy.
7. Is CTP included in Victorian registration?
In Victoria, the Transport Accident Commission (TAC) charge is included as part of vehicle registration and provides compulsory third-party injury insurance.
8. What is an insurance excess?
An excess is an amount you may need to contribute towards an eligible claim. Different excesses may apply depending on the driver, claim circumstances and policy.
9. What is agreed value?
Agreed value is a vehicle value agreed with the insurer and shown in the policy documentation. Check it at renewal because the agreed value may change over time.
10. What is market value?
Market value generally refers to the insurer's assessment of the vehicle's value at or around the time of the loss, according to the definition and method in the policy.
11. Are young drivers more expensive to insure?
Age and driving experience can be factors insurers use when assessing risk and premiums. Additional age or inexperienced-driver excesses may also apply under some policies.
12. Do I need to tell the insurer about vehicle modifications?
You should answer insurer questions accurately and disclose information required by the insurer. Modifications can affect eligibility, cover and premiums, so check with the insurer and review the policy terms.
13. Does Comprehensive insurance cover everything?
No. Comprehensive insurance still has limits, conditions and exclusions. Review the Product Disclosure Statement and other policy documents to understand what is and is not covered.
14. What should I do before making a car insurance claim?
Make sure everyone is safe, obtain relevant details, document the incident where appropriate and check your policy. Your insurer may ask for accident details, photos, witness information or police information depending on the circumstances.
15. Can I get Car Insurance through Policy Direct now?
Not yet. Policy Direct's Car Insurance quote pathway is coming soon. This page currently provides general educational information only.
COMING SOON
Car Insurance on Policy Direct
We're working on bringing Car Insurance options to Policy Direct. Until then, use this guide to understand the major cover types and the questions to consider when choosing car insurance.