Choosing third party property damage vs. comprehensive car insurance

There are two main car insurance options worth considering: comprehensive car insurance and third party property insurance. Each has different levels of cover, but how do you know which is best for your situation?

Luckily, that’s where we come in.

What is the difference between comprehensive and third party insurance?

Comprehensive car insurance generally lives up to its name. It’ll cover you for a wide range of damage caused by insured events like accidents, theft, fire (including bushfire), storms (including cyclones) and hail. It also has your back if you cause any damage to someone else’s car and property. Third party insurance, on the other hand, only covers damage to another person’s vehicle and property.

An important note:  Compulsory Third Party (CTP) Insurance, also known in NSW as a Green Slip, is different to third party property damage car insurance. CTP covers your liability, and the liability of anyone else who drives your vehicle, for injuries caused to others in a motor vehicle accident. It doesn’t cover losses associated with or the cost of damage to your or anyone else’s car or property.

If you’re registering a vehicle in NSW, you need to purchase a Green Slip before you can register your vehicle. Elsewhere in Australia, the premium for your CTP (or MAI Insurance, if you’re in the ACT) is included in your registration cost.

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Finding the right car insurance for you

Before you start shopping around for car insurance, it’s important to assess your car insurance needs so you don’t end up paying more than you should. To do this, you might like to consider:

• Calculating the value of your car against your insurance premium and excess. Then decide which kind of car insurance is likely to give you the best combination of cover and value.
• Whether you’ll require cover for fire and theft.
• If you can afford the cost of repairing someone else’s vehicle. If the answer is no, some form of car insurance may be useful for your situation. Depending on the amount of damage and the type of car, repair costs could set you back thousands of dollars¹.

We’ve compared the features of comprehensive and third party insurance, so you can see at a glance which option might be right for you.

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Comprehensive car insurance

Though comprehensive car insurance may cost you more than third party property damage, it offers an extensive range of features and benefits. These include cover for:

• ​the value of your car (amount covered) or your car’s market value (if you have chosen this option). If the market value option has been chosen it will be listed on your Certificate of Insurance,
• damage caused to your car, regardless of fault,
• damage that you’ve caused to someone else’s property or vehicle, and
• theft and malicious damage.

Make sure you read the product disclosure statement prior to purchase. Features of comprehensive car insurance that are standard with some providers may not be with others. Check things like your entitlement to a hire vehicle while your car’s in for repair or whether there’s an option to include roadside assistance on your comprehensive cover.

Third party property car insurance

Third party property car insurance, sometimes called Third Party Property Damage, covers damage to other people’s vehicles and property. If your car is damaged in the same event, and the accident is your fault, it won’t be covered for repairs.

So, if the value of your car isn’t huge, third party car insurance may be enough cover for you. But if you think you’ll need to cover your vehicle, comprehensive car insurance might be worth considering.

Third party property car insurance with cover for fire and theft

You can choose to take out Fire, Theft and Third Party Property Insurance to include cover for fire (including bushfire) and theft. This means your car is covered if it’s stolen, or damaged by fire or attempted theft.

GIO offers four levels of car insurance to make it easy for you to choose the amount of cover that best suits your needs. Whether you’re after comprehensive cover or just the basics, stop thinking you’re covered – know with GIO. 

To find the right option for you, explore our car insurance options online or get a quote.

Get an online quote

Source:

¹ ASIC: Car insurance

Read more:

• How to choose the right car insurance
• Why it’s important to have roadside assistance
• What to do if you’ve had a car accident

Insurance issued by AAI Limited ABN 48 005 297 807 trading as GIO. Please read the relevant Product Disclosure Statement before you make a decision regarding this product. The Target Market Determination is also available.