Explained: Fully Comprehensive Vs Third-Party Car Insurance. What’s the Difference?

It’s easy to feel overwhelmed by all the car insurance options out there. All the comparison sites. All the jargon. All the policies and prices. It’s a headache we just don’t need! However, when you take the time to understand the differences between the most common types of auto insurance: fully comp and third party, you’ll feel more comfortable about the process.

Choosing the right car insurance cover shouldn’t be a slog. If you want to know the difference between fully comprehensive and third-party insurance, read on for some clarity and simple advice.

Car InsuranceSource: Flickr

Don’t Forget CTP Insurance

Before we discuss fully comp and third party cover, it’s important to mention Compulsory Third Party insurance or CTP. All vehicles in Australia are required by law to have this insurance as standard. Driving without it is considered an offence. CTP insurance covers people injured by your vehicle in a crash, but won’t cover the damage caused to your vehicle.

Comprehensive Car Insurance

Comprehensive cover is just that. Comprehensive. Which means it covers a multitude of scenarios, personal properties and all related costs. Of course, you may choose to opt-out of some of the coverage that fully comp insurance provides, as many insurance companies offer to tailor individual policies to the drivers’ needs. However, some coverage includes:

  • Damage to your Car Caused by Accidents: This includes damage to belongings inside the vehicle. Towing costs, roadside assistance, emergency travel and accommodation costs. And in some cases, you could be entitled to a new vehicle.
  • Damage to Someone else’s Car/Injuries/Property: This means legal liability is covered if you cause accidental damage to someone else, their car or property.
  • Car Theft: If your car is stolen, you’re covered for a hire car and damage or theft of personal possessions in the car.
  • Weather Damage: Flood, fire or even hailstones destroying your windshield – with fully comp, you’re covered.

Third-Party Car Insurance

Often third party cover can be split into two categories. A strict third-party only policy or one that includes fire and theft cover for an additional cost. If you’re involved in a crash, then a strict third-party policy means that any damage to someone else’s car or property is covered, but damage to your vehicle isn’t. If you want additional cover, then you can extend your policy to one that covers fire and theft. This policy is not to be confused with CTP (see above).

So, what’s included in Third Party only?

  • Legal costs
  • Damage caused by an uninsured driver: If you are hit by an uninsured driver than the costs of repairs or the market value of your vehicle will be covered.
  • Damage to someone else’s property: If you damage someone else’s car or property then everything is covered.
    And, third party, fire and theft?
  • Uninsured driver damage
  • Damaged caused by fire
  • If your car is stolen, then the cost of a hire car will be covered
  • Towing services will be covered if your car is damaged by fire or theft

For more information, reach out to an insurance provider to discuss the kinds of cover you might need.

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