Comprehensive car insurance is the broadest optional cover you can buy in Australia. Put simply, it protects your own car as well as your legal liability for damage you cause to other people’s vehicles or property. Beyond crash damage, it typically covers theft, fire, storm, hail, flood and vandalism, and can include extras like towing or a hire car while yours is being repaired. It’s different from compulsory third party (CTP), which is about injury to people, not property or your car.
In this 2025 guide, we define comprehensive cover in plain English, then spell out what’s included and what isn’t, common exclusions and limits, and how it stacks up against CTP and third‑party policies. We’ll explain agreed value vs market value, premiums, excesses and no‑claim bonuses, and which optional features are worth paying for. You’ll also find tips to cut costs without losing critical protection, guidance for EVs and business or rideshare use, how claims work, and how to compare policies and read the PDS and TMD with confidence.
What comprehensive car insurance covers in Australia
Comprehensive car insurance in Australia is designed to protect both your vehicle and your liability when things go wrong. It typically pays to repair or replace your car after accidental damage (even if you’re at fault) and for non‑collision events like theft and severe weather, while also covering damage you cause to other people’s property.
- Accidental damage: Repair or replacement for your car, regardless of fault.
- Third‑party property liability: Damage you cause to others’ cars or property.
- Theft and attempted theft: Including recovery damage.
- Fire, storm, hail and flood: Natural disaster cover is generally included.
- Vandalism/malicious damage: Protection against intentional damage.
- Towing after an insured event: Reasonable towing costs are often covered.
- New‑car replacement: If written off and you meet policy criteria.
- Personal effects: Limited cover for items stolen or damaged in the car.
- Glass and windscreens: Sometimes with reduced or no excess.
- After‑accident care/hire car: May include taxi, accommodation or a hire car (varies by insurer).
What comprehensive car insurance doesn’t cover (exclusions and limits)
Comprehensive car insurance isn’t a blank cheque. Every policy has exclusions, limits and conditions in the Product Disclosure Statement (PDS) that can reduce or deny a claim. Know these before you buy, because they vary by insurer and can be the difference between a smooth payout and an expensive surprise.
- Wear and tear/maintenance: Mechanical failure, depreciation, rust or general wear and tear aren’t covered.
- Illegal or unsafe driving: No cover if the driver is unlicensed, over the limit, drug‑affected, or the car is unroadworthy.
- Unnamed drivers: Claims may be declined or carry extra excesses if the driver isn’t listed.
- Intentional or fraudulent damage: Deliberate acts void cover.
- Wrong usage: Using a privately insured car for rideshare, taxi or courier work without the right cover can void claims.
- Undeclared mods/accessories: Items not disclosed or exceeding limits may not be covered.
- Sub‑limits and excesses: Caps often apply to personal effects, windscreens and hire cars, and extra age/unlisted‑driver excesses can apply.
CTP vs third party vs comprehensive: what’s the difference?
Here’s the plain‑English split. CTP (Compulsory Third Party) protects people, not cars. Third party policies protect other people’s property. Comprehensive protects your car and others’—the widest cover in Australia. Knowing the gaps will help you choose the right level for your budget and risk.
- CTP (Green Slip): Mandatory. Covers injury/death to people you harm. No cover for cars or property. Bought with rego (separately in NSW).
- Third party property: Covers damage you cause to others’ cars/property. Your car isn’t covered. Some policies add limited not‑at‑fault benefits.
- Third party fire & theft: Third party property plus theft/fire of your car. No cover for crash damage to your car.
- Comprehensive: Covers your car and third‑party damage (even if you’re at fault), plus theft, fire, storm, hail, flood and vandalism.
Agreed value vs market value: how write-offs and payouts are calculated
When a comprehensive policy declares your car a total loss (write‑off), the payout is based on how you set its value. With an agreed value, you and the insurer lock in a fixed amount upfront. With market value, the payout is what your car would have sold for at the time of the loss. In a write‑off, the insurer pays the chosen value, less any excess; market value is uncertain at claim time, while agreed value usually attracts a higher premium.
- Agreed value: Fixed, predictable payout; higher premium.
- Market value: Variable payout; you can’t set the amount at claim time.
- Good practice: Review your sum insured each renewal so it stays realistic.
Premiums, excesses and no-claim bonuses explained
Your premium is what you pay for cover; insurers price it using risk factors such as your car, driver details, location, how you use the vehicle, cover level and the excess you choose. The excess is your contribution when you claim. Younger drivers (often under 25) may face higher or additional excesses. A no‑claim bonus (NCB) discounts your premium when you don’t claim, but certain claims can reduce or reset it.
- Set an excess you can afford: A higher excess usually lowers premiums.
- Watch extra excesses: Age/inexperienced and unlisted‑driver excesses can stack on your basic excess.
- Know the NCB rules: Check which claims affect it, any caps, and whether an excess applies when you’re not at fault.
Optional extras and features worth considering (and what to skip)
Optional extras can be great value if they match how you drive and what you’d miss without your car. Prioritise benefits you’ll actually use, check sub‑limits, and weigh any extra premium against the likely payout or convenience at claim time.
- Windscreen/glass cover: Reduced or no excess for chips and cracks.
- Accident hire car: A rental while your car is repaired or replaced.
- Choice of repairer: Select your trusted workshop.
- Roadside assistance: Add only if you don’t already have it.
- Personal effects uplift: Higher sub‑limits if you carry gear.
- Skip dealer add‑ons: Often poor value at point of sale.
- Avoid duplicates: Don’t pay twice for benefits you already have.
Who should consider comprehensive cover (and when third party may be enough)
Choose comprehensive if a write‑off or theft would seriously impact your finances or mobility. It’s the broadest protection—covering your car and third‑party property for crashes, plus theft, fire and severe weather—and suits drivers who street‑park, live in hail/flood‑prone areas, or anyone who’d struggle to pay for repairs or be without their car.
- Older/low‑value car you could afford to replace
- You can live without it; mainly want cover for others’ property
- Secure parking and low kilometres; consider third party fire & theft if street‑parked
How claims work in practice: at fault, not at fault and excess
If an insured event occurs, make the scene safe, gather details, and lodge your claim promptly. The insurer assesses the damage, arranges repairs or a write‑off, and you pay any applicable excess at approval or collection.
- At fault: you pay the basic excess (plus any age/unlisted‑driver excess). The insurer repairs your car and covers third‑party damage per your policy.
- Not at fault: if the other driver is identified and liable, excess is often waived; if not, it may still apply.
- Extras: glass cover can remove windscreen excess. With National Cover’s preferred repairers you get a lifetime repair warranty and, on eligible not‑at‑fault claims, a replacement car.
Ways to lower your premium without losing critical cover
You don’t have to gut your comprehensive car insurance to cut costs. Focus on risk factors insurers price, trim paid extras you won’t use, and keep cover where it matters (your car, third‑party liability and major events like theft and storms).
- Lift your voluntary excess: Set a realistic, affordable amount.
- Pay annually: Avoid monthly instalment loading where it applies.
- Park securely: Garage or off‑street parking can reduce risk.
- Declare realistic kilometres: Low‑km use may price cheaper.
- List fewer drivers: Restrict younger/unlisted drivers where practical.
- Install security: Alarms, immobilisers and dashcams may help.
- Right‑size your sum insured: Keep agreed/market value realistic.
- Skip duplicate add‑ons: Don’t pay twice for roadside/hire cars.
- Maintain an NCB: Drive claim‑free to preserve discounts.
- Ask for discounts: Bundling or loyalty savings may be available.
Electric vehicles, accessories and modifications: 2025 considerations
EVs fit neatly under comprehensive car insurance, but there are a few extras to check in 2025. Treat your battery, charging gear and any upgrades like high‑value components and accessories—disclose them, keep invoices, and confirm how they’re insured in your PDS to avoid nasty surprises at claim time.
- Battery and driveline: Crash, theft and fire damage are typically covered; battery wear, capacity loss and mechanical/electrical failure fall under wear and tear and aren’t covered.
- Charging equipment: Portable cables may be accessories; fixed home wallboxes are often insured under home cover. Confirm treatment and sub‑limits.
- Towing and repair: Ensure EV‑safe towing is allowed after an insured event and check approved repair networks or add choice‑of‑repairer.
- Mods and accessories: Declare wraps, rims, body kits, infotainment or performance parts. Undeclared or non‑compliant mods and unroadworthy setups risk denial.
- Usage declaration: If you use your EV for rideshare, courier or business, select the right policy type—private‑use cover can void claims.
Weather and natural disaster cover: flood, hail, storm and fire
In Australia, comprehensive car insurance generally includes natural disaster cover — repairing or replacing your car if it’s damaged by fire, storms, hail or flood — and still covers your liability to other people’s property. However, the details live in the PDS. Policies can set limits and conditions, and some events or circumstances may be excluded. Typical carve‑outs still apply: insurers won’t cover wear and tear, rust or mechanical failure, and may decline claims where the driver was unlicensed, intoxicated or the vehicle unroadworthy.
- Usually covered: Fire, storm, hail and flood under comprehensive.
- Check the fine print: Sub‑limits and excesses can apply (e.g. towing, hire car, glass).
- Eligibility matters: Unlisted/young drivers may face extra excesses or exclusions.
Business, rideshare and commercial use: getting the right type of cover
Using your car for income—rideshare, delivery, taxi, courier or broader business—often sits outside private comprehensive cover. Stay protected by taking a policy rated for that usage and accurately declaring drivers, accessories, overnight parking and typical kilometres.
- Rideshare/taxi: Choose rideshare/taxi comprehensive or an approved endorsement; meet platform/licensing rules.
- Courier/delivery: Buy commercial‑use comprehensive; consider separate goods‑in‑transit for customers’ items.
- Business/fleet: Seek multi‑driver cover, declared signage/accessories, and strong preferred‑repairer networks.
- Liability: Motor policies cover property liability; add public liability for on‑site/customer risks.
How to compare policies and read the PDS and TMD
When you compare comprehensive car insurance, look past price. Get multiple quotes, then read the Product Disclosure Statement (PDS) for what’s covered, what’s excluded, sub‑limits, excesses and how claims work. Check the Target Market Determination (TMD) to confirm the policy is designed for your situation. Be mindful that comparison websites may not show every option or may promote partners.
- Cover scope: Accidental damage, third‑party liability, theft, fire, storm, hail and flood; which optional extras are included or available.
- Valuation & limits: Agreed vs market value; sub‑limits for glass, personal effects, hire car and towing.
- Excesses: Basic plus age/unlisted‑driver excesses; whether an excess applies when you’re not at fault.
- Costs & payments: Premium vs chosen excess; any loading for monthly instalments.
- Usage & drivers: Private vs rideshare/commercial use; list regular drivers to avoid extra excesses.
- Service & repairs: Choice of repairer, approved networks, after‑accident care and towing.
- No‑claim bonus: How claims affect discounts and any NCB protection.
- Key exclusions: Wear and tear, unroadworthy vehicle, alcohol/drugs, intentional damage.
2025 market trends to watch: pricing, usage‑based cover and repair costs
In 2025, the smartest buyers will watch three moving parts: what drives price, how insurers rate usage, and how repairs are managed. Premiums are still shaped by your car, where it’s kept, how it’s used, cover level and the excess you choose. Location and parking matter, and low‑kilometre declarations can influence quotes.
- Pricing drivers: Vehicle, driver details, location/parking, usage, cover level and chosen excess.
- Usage rating: Low‑km and limited‑driver settings can sharpen pricing without losing cover.
- Repair experience: Look for choice of repairer, towing/hire‑car benefits and strong repair warranties; check sub‑limits and glass options.
Key takeaways and next steps
Comprehensive insurance is the widest optional cover in Australia: it pays to repair or replace your car after accidental damage, theft or severe weather, and covers your liability for damage to other people’s property. Payouts depend on agreed vs market value, costs hinge on risk, excess and no‑claim bonus rules, and claims can be reduced or refused by exclusions in the PDS.
- Pick the right level: CTP = injuries only; third party = others’ property; comprehensive = your car + others.
- Lock in your payout: Choose agreed value (predictable) or market value (variable).
- Set a realistic excess: Higher excess lowers premiums; watch age/unlisted‑driver excesses.
- Add only high‑value extras: Glass, hire car, choice of repairer; skip duplicates.
- Declare usage and drivers: Private vs rideshare/courier/business; list regular drivers; disclose mods/accessories.
- Read the PDS/TMD and compare: Check sub‑limits, disaster cover, repair rights and NCB rules.
- Trim costs safely: Secure parking, pay annually, realistic kms, and keep your sum insured accurate.
Ready to insure smarter with expert claims support, a lifetime repair warranty, replacement car on eligible not‑at‑fault claims, 24×7 towing and a price‑beat guarantee? Get started with National Cover.
