What is Comprehensive car insurance?

If you’re looking for a high level of coverage and added peace of mind in case of the unexpected, it could be worth exploring Comprehensive car insurance. 

Comprehensive car insurance is a type of product that provides a higher level of cover (and usually higher premiums) when compared to third-party property damage and third-party property, fire and theft insurance. This high level of cover may assist with paying for or replacing damage to your car due to various events that may include car accidents, theft, vandalism and weather-related events. While it’s not a mandatory level of cover, without comprehensive cover you may be at risk of paying outright for the repairs to your car and other cars or properties involved in the accident.

Comprehensive car insurance is just one type of car insurance policy. But there are other car insurance policy types to consider, including:

• Third Party Property Damage: A type of car insurance that helps cover damage to other vehicles or property in an accident caused by you – but not the cost of repairs to your own car. 
• Third Party Property, Fire and Theft: Another type of car insurance that covers you for damage caused to other vehicles and property in an accident, in addition to theft, attempted theft and fire of your own vehicle. Keep in mind that this insurance doesn’t cover loss or damage to your car from an accident, collision, malicious damage or a weather-related event. 
• Pay As You Drive: Offers the same level of coverage as Comprehensive car insurance but at a reduced rate for people who drive no more than 15,000km per year.

What does Comprehensive car insurance cover?

With a broader scope of coverage, Comprehensive car insurance could help protect against damages that were deemed to be your fault in a car accident. In more specific terms, here’s what is typically covered by a Comprehensive car insurance policy, subject to any exclusions and limits:

• Malicious or weather-related damage: Damage to your car caused by vandalism, fire or weather-related events.
• Theft or attempted theft: The loss or damage to your vehicle if it’s stolen or if theft was attempted, including the cost of replacement or repairs.
• Accidental damage: Accidental damage caused in a car accident to people’s car or property, regardless of who is at fault. 
• New car replacement: You may be entitled to a new car if your car is a total loss (keep in mind that insurers may have specific terms and conditions that will apply). 
• Personal belongings damage: If personal belongings in your car (such as prams, child safety seats or other belongings) are lost or damaged in an event, you may be entitled to a level of compensation depending on the terms of your policy. 
• Towing and repair costs: You may be covered for essential repairs to get your car back on the road, as well as reasonable towing costs. 
• Accommodation costs: Some insurers may cover the costs of accommodation if you make a claim while away from home (such as over 200km from your home address). 
• Car hire costs: Some insurers may cover the costs of a hire car for a certain period of time if your car is stolen or being repaired. 
• Lock and key replacement: If your keys have been stolen, some insurers may cover the costs of having your lock and keys replaced – usually up to a certain dollar amount. 

As always, it’s important to check your insurer’s Product Disclosure Statement (PDS) for specific details about what is covered by your Comprehensive car insurance policy. 

What isn’t covered by Comprehensive car insurance? 

On the flip side, there are a range of exclusions that you need to consider before taking out Comprehensive car insurance. Generally speaking, some of the common exclusions found in Comprehensive car insurance policies are:

• Driver exclusions: Your insurer may not cover you if you make a claim where a driver is younger than any age restrictions listed on your Certificate of Insurance, is a learner driver (not accompanied by a fully licensed driver), or is not legally licensed to drive your car.
• Driving a car that isn’t roadworthy: From defective brakes to worn-out tyres, some insurers may not cover you for an accident that occurred in a car that’s been deemed unroadworthy.
• Any damage caused while driving under the influence: If you’ve been involved in a car accident while driving under the influence of drugs or alcohol, some insurers won’t cover any damages that result.
• Any intentional damage to your vehicle: If damage has been caused intentionally by you, some insurers won’t cover you for the costs of repairs.

By reading the PDS of your specific insurance policy, you’ll be able to understand exactly what is and isn’t covered by your Comprehensive car insurance policy. 

How much is Comprehensive car insurance? 

The cost of Comprehensive car insurance will vary from person to person. The cost is based on several factors, including but not limited to age, value and type of car, location and claims history. 

The best way to find out how much you’ll likely need to pay for a Comprehensive car insurance policy is to gather quotes from a range of insurers. These estimates will be based on your personal details and unique risk factors, ensuring you make an informed decision about which insurer is right for you. 

What are reasons to get Comprehensive car insurance?

While it does come with a premium price tag, there are several advantages to taking out Comprehensive car insurance, including:

• Coverage for a broad range of scenarios: If you want to insure your car against accidental loss or damage caused by accidents, collisions, weather-related events, fires, theft, attempted theft or malicious damage by others; and for liability for loss or damage to other people’s property, comprehensive cover offers what you want.
• Peace of mind in case of the unexpected: In the event of an accident, some Comprehensive car insurance may step in to cover the costs of repairs or even a car replacement for both your car and other vehicles. This can help reduce the financial burden of paying for repairs or a new car at short notice. 
• Get back on the road sooner: If you rely on a car for work or personal needs, some Comprehensive car insurance may cover the replacement of your car or access to a hire car when you need it. 

Comprehensive car insurance FAQsFrequently Asked Questions, answered 

Is Comprehensive car insurance compulsory? 

While Comprehensive car insurance isn’t compulsory, it can be a valuable level of cover. With a broader scope of coverage compared to third-party car insurance, Comprehensive car insurance can provide peace of mind and an extra level of protection in the event your car is damaged in a collision, theft or weather-related event.

What’s the difference between Comprehensive and compulsory third-party insurance?

Comprehensive car insurance covers property damage, be it your car, someone else’s vehicle or property. In contrast, CTP insurance is a mandatory insurance policy that every driver in Australia needs to have to legally drive on the roads. Compulsory third-party insurance only covers the costs of injuring someone else in a car accident, meaning damage to cars and properties (including your own) isn’t covered. 

Does Comprehensive car insurance cover other drivers?

This depends on whether your insurer covers you for unnamed drivers or not. If a driver isn’t listed on your Certificate of Insurance, some insurers may not cover you in the event of a car accident. Plus, it’s important to check any exclusions that may apply to drivers when taking out a policy, such as whether your insurer will cover you for accidents involving a learner or provisional driver. Check your insurance policy’s PDS for more specific details. 

Does Comprehensive car insurance include CTP?

No, CTP insurance and Comprehensive car insurance are two separate policies. CTP insurance is a mandatory insurance policy that must be secured to drive on Australian roads. Comprehensive car insurance is an additional level of coverage that offers added protection for your car. 

Does Comprehensive car insurance cover driving other people’s cars?

In most cases, Comprehensive car insurance doesn’t cover you for driving other cars. Be sure to check the terms of your specific car insurance policy and consider adding another car to your policy if you drive it on a regular basis. 

Do I need Comprehensive car insurance? 

While it’s not compulsory, Comprehensive car insurance provides the highest level of protection of all available car insurance policies. However, this does depend on your personal circumstances.

This type of policy could cover a wide range of risks, including the cost of accidents, theft, and damage to your car and belongings, as well as emergency accommodation if you get stranded. The cover you choose will depend on various factors, including your budget, the value of your car, whether you have secure parking for your car, how often you drive your car, if you’ll list other drivers on your car, and so on.

Proactively reviewing your car insurance options can help you secure the right level of cover for your needs and lifestyle. If you’re weighing up your options, consider Real Car Insurance and get a quote today.