Comprehensive vs Third Party Car Insurance

Comprehensive or third party? The difference barely matters until there's a crash, and then it decides who pays for what. Here's what each type of cover does, and how it plays out when someone hits you compared with when you cause the accident.

The four main types of car insurance

Moneysmart sorts car insurance into these levels:

Compulsory Third Party (CTP). Covers injuries to people caused by your car, not damage to cars or property. In Victoria it comes through the TAC charge that's part of your registration, so every registered car has it.
Third party property damage. Covers damage your car causes to other people's cars or property. It doesn't cover damage to your own car.
Third party property, fire and theft. The same as above, plus cover if your car is stolen or damaged by fire.
Comprehensive. Covers damage to your car and to other people's cars or property, even if you caused the accident, plus theft, fire and weather events, subject to the policy's exclusions.

When someone else causes the crash

This is where people are often surprised. If the other driver caused the accident, their insurance is meant to cover the damage to your car, whatever level of cover you have yourself.

If you have comprehensive cover, you can claim on your own policy and let your insurer recover the cost from the at-fault driver's insurer, or claim directly against the at-fault driver's insurer. Claiming on your own policy can mean paying your excess, depending on your policy's waiver rules (see how the excess works when you're not at fault).
If you have third party property cover only, your policy won't pay for your car, so you claim against the at-fault driver's insurer. Here's whose insurance to call.
If the at-fault driver has no property insurance, things get harder. With comprehensive cover your insurer can usually still help. Without it, you may have to recover the cost from the other driver yourself. Victoria Legal Aid has information on driving and accidents, and the Dispute Settlement Centre of Victoria helps people resolve disputes.

When you cause the crash

Every level above CTP pays for the damage you cause to other people's cars. Only comprehensive pays to fix your own car. Moneysmart puts it plainly: if you want cover for repairs to your car after a crash you cause, you usually need comprehensive insurance.

Which one suits you?

A few questions help you decide:

Could you afford to repair or replace your car yourself if you caused a crash?
Could you manage without the car if it were written off or stolen?
Is the car under finance? Your lender may require a minimum level of cover.
Is it parked on the street, with a higher risk of theft or damage?

If the honest answer to the first two is no, comprehensive is usually worth comparing. Whatever you choose, check the exclusions and how the excess works, including whether it's charged when you're not at fault. Moneysmart's guides to saving money on car insurance and no claim bonuses are worth a read before you renew, and the Insurance Council's find an insurer tool can help you build a shortlist.

Where we come in

The repair side is the same whichever policy you hold. If the other driver caused the crash and you have a claim number, SS Automotive can manage the claim: with comprehensive cover it can go through your own insurer or straight to the at-fault driver's insurer, and with third party cover it goes to the at-fault driver's insurer. If the car can't be driven we tow it, 24/7. Where you're eligible, a replacement car follows once the claim paperwork is finalised and the car is dropped off (how not-at-fault hire cars work). Repairs are done at our Dandenong workshop, paint goes on in our own spray booth, and the workmanship carries a lifetime warranty while you own the car. Read about our not-at-fault accident claims and smash repairs; hidden damage to the brakes and suspension or wheels and tyres can be checked in the same visit.

Common questions

Does CTP cover damage to my car?

No. CTP covers injuries to people. Damage to cars and property needs property insurance.

I only have third party. Can I still get my car fixed if I wasn't at fault?

Yes, usually through the at-fault driver's insurer. The details you collect at the scene, especially their rego and insurer, are what make that possible. Here's how long a claim usually takes.

What's the difference between agreed value and market value?

Both apply to comprehensive cover if your car is written off or stolen. Agreed value is a fixed amount set with your insurer. Market value is what your insurer decides the car was worth at the time of the accident.

Related help

Accident help at SS Automotive

More guides from our blog

Official resources

For the whole claim process in one place, read our guide to insurance claims after a crash in Victoria.

Comprehensive vs Third Party Car Insurance: Who Pays After a Crash?