There are four types of car insurance Australia for customers

Having a car insurance Australia is necessary because it protects you and your vehicle against a lot of damages. In Australia, there are four types of car insurance, each form is suitable for different customers. So to choose the type of insurance that meets your needs and desires, you should consider the characteristics of each type.

Car insurance Australia
There are four types of car insurance Australia for customers

In Australia, there are more and more car insurance companies. They offer different insurance for customers with a lot of advantages. To get information about some insurance companies in Australia, the readers should read the previous post of us about Three car insurance companies you should consider.


Like the previous post about car insurance USA, the post today about the car insurance Australia include two parts. They are: “Why is the car insurance Australia very important?” and “There are four types of car insurance Australia”.

1. Why is the car insurance Australia very important?

Car insurance protects customers against financial loss for car damages, theft, weather events and other unforeseen expenses according to the policy type. Car insurance policies help pay the cost of damage to car, property and even people.

Cars and drivers are constantly affected on our way – and even at home. To make sure your car is protected in more than one case, it is important that you remove the coverage that suits your current needs.

To better illustrate the point of view, consider the following:

  • Stealing. According to the National Automobile Crashes Council, 52,858 vehicles were stolen in Australia in 2017, Granted, this is a reduction of over 7% the previous year, but it still amounts to tens of thousands of vehicles taken from hardworking Aussies.
  • Traffic accidents. Between June 2017 and May 2018, about 5 out of every 100,000 people have died of an Australian accident – about 1,214.
  • Hurricanes and natural disasters. In May 2018, a Tasmania flood event caused more than $ 20 million in damage. Back in December 2017, hail and hurricane damage caused up to $ 105 million in Victoria. Such events are a way of life in Australia but can cause great damage to the household budget.
Car insurance Australia
There are four types of car insurance Australia for customers

2. There are four types of car insurance Australia

2.1. Comprehensive Car Insurance

Comprehensive car insurance can include damage caused by the car due to accidents and other covered events, such as vandalism, natural disasters, and theft. It can also guarantee people against damage to someone else’s cars or property people cause while driving.

This insurance can also cover a wide range of optional extras, such as:

  • Roadside assistance
  • Free car rental while your car is being repaired
  • Windshield
  • The extra features people choose will often result in higher premiums.

This is the top level premium option and will definitely bring you the greatest peace of mind – but it’s also the most expensive!

  • The comprehensive car insurance covers: Everything is covered in the above insurance options above, and in addition, it includes accidental damage to your own vehicle, regardless of who is at fault. There are also a variety of optional extras, including replacement vehicles and replacement windshield does not exceed. When they speak comprehensively, they definitely mean it.
  • The comprehensive car insurance doesn’t cover: Even comprehensive insurance also has limitations. It usually will not cover damage caused by someone else driving the car unless they are allowed to do so on your policy. It will also not cover the damage caused if the driver exceeds the legal limit or is affected by the drug. In addition, your vehicle must be accessible and you must have a valid driver’s license.

2.2. Third Party, Fire, and Theft

If customers don’t want to pay for top-of-the-line insurance but do want some level of protection for the own car, Third Party, Fire, and Theft insurance is the next option.

  • The third party, Fire, and Theft insurance covers:  Cover damage to the property of others
  • The third party, Fire, and Theft don’t cover: The cost of repairs to the car if it is involved in a traffic accident.

What are the chances of the car being stolen?

According to the National Motor Vehicle Theft Reduction Council, in Australia, a car is stolen every ten minutesThe majority of thefts are “short-term thefts” but there is a reasonable proportion of “for profit” thefts.

2.3. Third Party Property

Third Party Property is the most basic form of optional car insurance Australia, and helps to provide customers with financial cover if customers cause damage to property rather than a person; for example someone’s prized car, caravan, or boat.

  • The third party insurance covers Damage caused by the car of customers to other people’s property. It will also cover the legal costs if customers become embroiled in legal proceedings as a result of the damage caused.
  • The third party insurance doesn’t cover The cost of repairing or replacing a private vehicle, except in limited circumstances, through a number of insurance companies.

2.4. Compulsory Third Party (CTP) 

  • The CTP insurance covers: Gives customers protection against claims for compensation if they injure or kill someone in a motor vehicle accident.
  • The CTP doesn’t cover: CTP does not guarantee repair costs for any means or property.

While it is the cheapest and most basic form of insurance, remember that only CTP insurance puts customers at significant financial risk in the event of damage to a vehicle or other property belonging to another person.

Type of insurance Injuries or death to other people? Damage to other people’s property Damage or loss of your car caused by theft or fire Damage to your car as a result of a traffic accident
CTP Yes No No No
Third party property No Yes No No
The third party, fire, and theft No Yes Yes No
Comprehensive No Yes Yes Yes

From the table above, readers can compare car insurance in Australia and choose yourself a type of insurance. To get full of steps compare car insurance, people can read the article How to get a compare car insurance document from the Nerdwallet?

In addition to providing useful insurance related articles in Australia, we also have helpful articles on personal loans, credit cards, and other services in this country. For more information, please read in the categories as loans, credits, insurance…

Hillary (Team Content) – Info Credit Free