Choosing the right car insurance can feel overwhelming, especially when you’re comparing policy types and trying to work out what you actually need. If you’re asking what does comprehensive cover include, you’re already thinking seriously about protecting your vehicle, and that’s a smart move. At National Cover, we help Australian drivers understand exactly what they’re paying for, so you can make informed decisions without the guesswork.
Comprehensive car insurance is the highest level of protection available for your vehicle in Australia. It covers damage to your own car from accidents, theft, fire, storms, and vandalism, plus your liability for damage you cause to other people’s property. But the specifics can vary between insurers, and knowing what’s standard versus optional can save you from nasty surprises at claim time.
In this guide, we’ll break down everything included in comprehensive cover, from core protections to common extras. Whether you’re insuring a private vehicle, a rideshare car, or a commercial fleet, you’ll walk away knowing exactly what to look for, and what questions to ask, before you commit to a policy.
What comprehensive cover includes
Understanding what does comprehensive cover include starts with the basics: protection for your own vehicle and your legal liability when you damage someone else’s property. Most comprehensive policies in Australia follow a similar framework, but the specifics around claim limits, excess amounts, and optional extras will differ between insurers like National Cover and the big banks.
Damage to your own vehicle
Comprehensive cover protects your car when you’re at fault in an accident, which is the main reason drivers choose it over third party options. If you reverse into a pole, misjudge a corner, or collide with another vehicle, your insurer pays to repair or replace your car up to its agreed or market value. You’ll still pay an excess, but you won’t be left covering thousands in repair bills yourself.
Beyond accidents, your policy also covers damage from theft, attempted theft, fire, storms, hail, floods, and vandalism. If someone keys your car in a car park or a storm drops a branch on your bonnet, you’re protected. This coverage applies whether your vehicle is parked at home, at work, or on the street, giving you round-the-clock protection against events you can’t control.
Third party property damage
Every comprehensive policy includes unlimited cover for third party property damage, which means you’re protected if you damage someone else’s car, fence, building, or other property in an accident. Without this protection, you could face legal action and significant out-of-pocket costs, especially if you hit an expensive vehicle or cause damage to multiple properties.
Comprehensive cover gives you financial protection on both sides: for your own vehicle and for the damage you might cause to others.
Additional benefits
Most comprehensive policies automatically include extras like emergency towing and roadside assistance, though the dollar limits and service areas vary. You’ll often get a hire car or taxi allowance if your vehicle is written off or being repaired after an accident, helping you stay mobile while your claim is processed. National Cover also offers benefits like lifetime warranties on approved repairs and replacement cars for not-at-fault claims, which can make a real difference when you’re dealing with accident stress.
What comprehensive cover usually excludes
Knowing what does comprehensive cover include is only half the story. Understanding the exclusions prevents nasty surprises when you lodge a claim. Australian comprehensive policies share common exclusions that apply across most insurers, including National Cover, and these limitations protect insurers from fraud and misuse while keeping premiums affordable for everyone.
Regular wear and tear
Your comprehensive policy won’t cover mechanical breakdowns, engine failures, or gradual deterioration from normal use. If your gearbox fails after 150,000 kilometres or your battery dies after five years, you’ll need to pay for repairs yourself. Insurance protects against sudden and unexpected damage, not maintenance issues that develop over time through regular driving.
Tyres, brake pads, and other consumable parts fall into the same category. These items wear out predictably and need replacement as part of routine vehicle maintenance, which remains your responsibility as the owner.
Intentional or unlawful acts
Insurers exclude damage caused by deliberate actions, drink driving, drug use, or driving without a valid licence. If you’re caught driving over the legal alcohol limit or under the influence of drugs, your claim will be denied, even if the accident wasn’t entirely your fault. This applies whether you’re the regular driver or you’ve lent your vehicle to someone who breaks these rules.
Comprehensive cover only works when you’re using your vehicle legally and responsibly.
Using your car for illegal purposes, street racing, or competitions also voids your cover. Modifications you haven’t declared to your insurer can trigger exclusions too, especially performance upgrades that increase risk.
Specific situations and items
Most policies exclude personal belongings left inside your vehicle, such as laptops, phones, or tools. You’ll need separate contents insurance to protect these items. Damage while your vehicle is unregistered or unroadworthy typically isn’t covered either, nor is damage from deliberate overloading beyond the manufacturer’s specifications.
How it compares with third party and CTP
When you’re weighing up what does comprehensive cover include against other policy types, understanding the differences helps you choose the right protection for your situation. The three main types of car insurance in Australia sit on a scale of coverage and cost, with comprehensive at the top, third party property in the middle, and compulsory third party (CTP) as the legal minimum.
Third party property cover
Third party property insurance protects other people’s property when you cause an accident, but it provides no cover for your own vehicle. If you crash into someone’s car or fence, your insurer pays for their repairs, but you’ll pay out of pocket to fix your own vehicle. This option suits drivers with older, lower-value cars where the comprehensive premium might exceed what the vehicle is worth.
The trade-off is clear: you save money on premiums but accept full financial risk for damage to your own car, whether you’re at fault or not.
Compulsory third party (CTP)
CTP insurance is mandatory in every Australian state and territory and covers injuries to other people in accidents you cause. You pay it as part of your vehicle registration, but it provides no property damage cover and nothing for your own injuries or vehicle. CTP covers medical costs, lost wages, and rehabilitation for injured parties, which can run into hundreds of thousands of dollars in serious accidents.
CTP protects people, third party protects property, and comprehensive protects both plus your own vehicle.
How to choose the right level of cover
Deciding between comprehensive, third party, and CTP alone requires honest assessment of your vehicle’s value and your financial situation. Once you understand what does comprehensive cover include, you can weigh the premium cost against the risk you’re willing to carry yourself. The right choice protects your finances without paying for more coverage than you actually need.
Assess your vehicle’s value
Start by checking your car’s current market value through online valuations or dealer quotes. If your vehicle is worth less than $5,000 to $7,000, comprehensive premiums might eat up a significant portion of that value over a few years. In these cases, third party property cover often makes better financial sense, especially if you have savings to replace the vehicle yourself.
For newer vehicles, financed cars, or anything worth over $10,000, comprehensive cover typically justifies the extra cost. You protect a substantial asset and avoid financial strain if an accident writes off your vehicle.
Consider your driving situation
Your daily driving patterns affect which cover level suits you best. If you park on busy streets, commute in heavy traffic, or use your vehicle for rideshare, comprehensive cover protects against higher accident and theft risks. Drivers in regional areas with lower traffic density might feel comfortable with less coverage.
The right level of cover matches your vehicle’s value with your ability to absorb potential losses.
Think about who else drives your car too. If you’ve added young or inexperienced drivers to your policy, comprehensive cover provides peace of mind when accidents are statistically more likely.
What affects the premium and excess
Understanding the factors that influence your premium and excess helps you control insurance costs while maintaining the protection you need. Insurers calculate prices based on statistical risk, which means your personal circumstances and vehicle details directly affect what you pay. These factors apply regardless of which insurer you choose, though National Cover’s pricing research often finds better rates than mainstream providers.
Your vehicle’s details
Your car’s make, model, age, and market value form the foundation of premium calculations. High-performance vehicles cost more to insure because they’re statistically more likely to be involved in accidents and theft, while older cars with lower values attract cheaper premiums. Security features like immobilisers and alarms can reduce your premium, as can choosing a vehicle with strong safety ratings that reduce injury risk in accidents.
Your driving profile
Insurers assess your age, driving experience, and claims history when pricing your policy. Younger drivers under 25 typically pay higher premiums due to accident statistics, while drivers with clean records over several years earn discounts. Where you live and park your vehicle matters too: urban postcodes with higher theft and accident rates cost more than regional areas with lower traffic density.
Your choices around excess and optional extras give you direct control over your premium costs.
Policy choices
Selecting a higher voluntary excess reduces your premium because you accept more financial risk yourself. Adding optional extras like hire car upgrades or windscreen cover increases costs, so understanding what does comprehensive cover include as standard prevents paying twice for the same protection.
Next steps
You now understand what does comprehensive cover include and how it compares with other policy options in Australia. The next step is getting quotes that reflect your specific vehicle and driving situation, comparing not just the premium cost but the actual protection each policy provides.
National Cover specialises in finding competitive rates for Australian drivers across private, rideshare, and commercial vehicles. Our pricing research and price-beat guarantee ensure you’re not overpaying for comprehensive protection, while our claims team provides support when accidents happen. We offer 365-day assistance and benefits like lifetime repair warranties that add real value beyond basic coverage.
Ready to see what you could save? Get a comprehensive car insurance quote from National Cover and compare what we offer against your current policy’s coverage and pricing. You can switch providers at any time, even before your existing policy expires, and we’ll help you understand potential return premiums from your previous insurer.
