The renewal notice has landed, or you’ve just bought a car, and now you’re weighing up cover without overpaying or leaving yourself exposed. CTP is compulsory, but it only covers injuries — not repairing your car or someone else’s. Meanwhile, excesses, optional extras, state-by-state quirks (hello NSW Green Slip), and lender requirements for comprehensive cover can muddy the waters just when you need clear answers.
This guide cuts through the noise. We’ll explain the four types of car insurance coverage — Comprehensive, Third Party Property Damage, Third Party Fire and Theft, and Compulsory Third Party — in plain terms: what each option covers (and doesn’t), who it suits, typical costs and excesses, key PDS checkpoints, and real-world scenarios. We’ll also show how National Cover’s comprehensive policy compares, so you can weigh value against premium. Ready to choose with confidence? Let’s get into it.
1. Comprehensive car insurance with National Cover
If you want one policy that pays to repair or replace your own car and covers damage you cause to other people’s property, comprehensive is the top tier of the types of car insurance coverage in Australia. With National Cover, you’re also getting value-focused pricing, hands-on claims support and practical extras designed to keep you moving when things go wrong.
What it covers
Comprehensive car insurance is built to respond to the widest range of risks that everyday drivers face. It’s the cover most lenders require for financed or leased vehicles, and it’s the one many drivers choose for peace of mind in storm, theft and at‑fault crash situations.
- Accidental damage to your car: Repairs or total loss payout after a crash, regardless of who’s at fault.
- Damage to other people’s property: Your legal liability if you hit another car or property.
- Theft and attempted theft: Including recovery costs if your car is stolen.
- Fire and vandalism: Malicious damage and accidental fires.
- Severe weather and natural disasters: Storms, hail, flood and even earthquakes as outlined in the PDS.
- Claims support and logistics: With National Cover, 24×7 towing, streamlined email lodgement, 365‑day assistance and a lifetime warranty on authorised repairs.
What it doesn’t cover
Even the best comprehensive policy has limits. Insurers outline exclusions in the Product Disclosure Statement (PDS), and understanding them helps avoid surprises at claim time.
- Illegal or unsafe driving: No cover if the driver was over the legal alcohol limit or under the influence of drugs.
- Unlisted or excluded drivers: Restrictions and excesses can apply if a driver isn’t on the policy or is under a set age.
- Wear and tear or mechanical failure: Gradual deterioration and breakdowns aren’t insurable events.
- Commercial activities not disclosed: Using a car for disallowed business purposes under a private policy won’t be covered.
- Non-compliant modifications or accessories: Items not declared or approved may be excluded.
- Use outside the policy conditions: For example, racing or use on closed roads.
Who it suits
Comprehensive insurance is ideal when the cost to repair or replace your car would seriously hurt your budget. It’s also the right fit when your risk exposure is higher due to where and how you drive.
- Financed, leased or newer vehicles: Lenders typically require comprehensive cover.
- Higher‑value or special vehicles: Where replacement would be costly.
- Street‑parked or high‑theft areas: Extra protection for theft and vandalism risk.
- Severe weather regions: Hail, flood and storm events are specifically covered.
- Drivers wanting full support: National Cover adds towing, repair lifetime warranty and replacement cars for not‑at‑fault claims.
Typical cost and excess
Comprehensive has the highest premiums of the optional property covers because it protects both your car and third‑party property. Pricing varies by state, driver profile, car, usage and claims history. You can often tailor cost and risk settings to suit your budget.
- Excess choices: Opting for a higher standard excess can lower your premium; age or unlisted driver excesses may also apply.
- Market vs agreed value: Many policies offer a choice; your selection influences premium and payout basis (check the PDS).
- Repairer networks: With National Cover, using a preferred repairer can qualify you for an excess discount.
- Price‑beat mindset: National Cover backs competitive pricing with ASIC‑informed research and a price‑beat promise on comparable quotes.
Optional extras and features
Comprehensive cover is strong out of the box; add‑ons and service benefits make it even more practical. National Cover focuses on real‑world support and keeping you on the road.
- Replacement car (not at fault): National Cover can supply a replacement vehicle while yours is repaired.
- 24×7 towing: Included to move your vehicle quickly after an incident.
- Lifetime repair warranty: On all authorised repairs arranged through National Cover.
- Claims made simple: Fast email lodgement with guided support from a dedicated team.
- Commercial variants available: If you drive for rideshare, taxi, courier or broader business use, National Cover offers specialised policies built for that risk profile.
Things to check in the PDS
A few pages of careful reading now can save a lot of stress later. Focus on how your policy defines events, limits and obligations.
- Event definitions: How the policy defines “flood,” “storm,” “theft,” and “malicious damage.”
- Drivers and permitted use: Who may drive, age limits, business use declarations and any excluded uses.
- Excess structure: Standard, age, unlisted driver and windscreen/glass treatment.
- Value basis and limits: Market vs agreed value, accessories/mods, personal effects and towing/storage caps.
- Hire/replacement vehicles: When you’re entitled to a car, for how long, and any daily/total limits.
- Choice of repairer: Rights, preferred networks and how total loss decisions are made.
- Geographic limits: Where the car is covered and any off‑road conditions.
How it compares to other types
Comprehensive is the broadest optional cover. Third Party Property Damage only protects others’ property. Third Party Fire and Theft adds theft/fire for your car but not crash damage to it. CTP is separate and only covers injuries, not property.
- Max protection: Comprehensive covers your car plus third‑party property for a wide set of events.
- Mid‑tier: TPFT adds theft/fire to third‑party property but won’t fix your car after a crash.
- Basic: TPPD covers damage you cause to others’ property only.
- Mandatory: CTP covers injuries/death from road accidents and is required for registration.
State-based notes and special cases
Comprehensive works similarly nationwide, but a few state and life‑stage nuances matter. CTP is mandatory everywhere, purchased separately in some states (e.g. NSW Green Slip) and bundled into rego in others.
- CTP and comprehensive are separate: CTP never pays for car or property damage; comprehensive can.
- Finance and leasing: Lenders commonly require comprehensive cover on the vehicle.
- Disaster frequency: In hail or flood‑prone states, comprehensive with clearly defined weather cover is especially valuable.
- Business use: If you carry passengers or goods for payment, ask National Cover for the appropriate rideshare/taxi/courier or business policy to keep cover valid.
Example scenarios
Seeing how cover responds in practice makes the value clear. Here’s how comprehensive with National Cover can play out in common incidents.
- At‑fault crash at the lights: Your front end is damaged and you’ve dented another car. Comprehensive covers repairing your car and the other driver’s property, minus your excess. National Cover organises towing and manages repairs with a lifetime warranty.
- Overnight theft from your driveway: Your car is stolen and later recovered with damage. Comprehensive covers recovery and repairs; if written off, you’re paid according to your value basis. Claims are lodged via email with guided support.
- Hailstorm while parked at work: Hundreds of dents across the bonnet and roof. Comprehensive responds to severe weather damage. National Cover coordinates repairs and quality control under its lifetime warranty.
- Not at fault rear‑end: The other driver admits fault. Comprehensive streamlines the claim; National Cover can supply a replacement car while yours is in for repair and pursue costs from the at‑fault party.
In short, comprehensive cover with National Cover pairs broad protection with competitive, research‑driven pricing and practical help when you actually need it. If replacing your car out of pocket isn’t an option — or you want fewer what‑ifs — this is the tier built for you.
2. Third party property damage (TPPD)
When you’re mainly worried about the cost of damaging someone else’s car or property — not your own — Third Party Property Damage is the most affordable of the optional types of car insurance coverage. It’s a safety net for the big bills that can follow even a minor bump, without paying for cover you don’t need on a lower‑value car.
What it covers
TPPD focuses on your legal liability to others. If you cause a prang, it’s designed to stop a bad day becoming a financial disaster.
- Damage to other people’s property: Repairs or replacement for vehicles, fences, buildings and similar third‑party property you accidentally damage.
- Your legal liability: Defence costs and settlements up to the policy’s limit when you’re found legally responsible.
- Uninsured driver benefit (sometimes): Some insurers include limited cover for your car if an at‑fault uninsured driver hits you and you can identify them — check the PDS for conditions and caps.
What it doesn’t cover
This is where many drivers get caught out. TPPD won’t help with damage to your own car, even after a crash.
- No cover for your car’s accident damage: If you’re at fault, repairs or write‑off of your vehicle are on you.
- No theft or fire cover for your car: For that, you’d need Third Party Fire and Theft or Comprehensive.
- No weather or vandalism cover: Hail, flood, storms and malicious damage to your car aren’t included.
- Excluded uses and conditions: Driving under the influence, unlicensed driving, undisclosed or excluded drivers, undeclared modifications, or disallowed business uses can void cover.
Who it suits
TPPD suits drivers who want essential liability protection without paying for full own‑car cover.
- Older or low‑market‑value cars: When paying for comprehensive could outweigh the car’s value.
- Budget‑conscious drivers: You’re happy to self‑insure your own car’s damage but want protection from third‑party repair bills.
- Infrequent drivers or secondary cars: Where the risk exposure and replacement cost are low.
- Business drivers with allowed use: If your use is business‑related, ensure it’s permitted. For rideshare, taxi, courier or broader commercial use, choose a specialised policy (National Cover can help here).
Typical cost and excess
Premiums are typically much lower than comprehensive because the insurer isn’t covering your car. Excesses still apply when you claim for third‑party damage.
- Lower premiums: Reflecting the narrower cover compared with TPFT and Comprehensive.
- Excess structure: Expect a standard excess, with possible age or unlisted driver excesses.
- Pricing levers: Many insurers let you adjust excess, limit younger drivers, or opt for low‑kilometre settings to reduce premiums (subject to availability and criteria).
Optional extras and features
TPPD is a lean product by design, so extras are limited — but some policies add useful touches.
- Uninsured motorist protection: Often the key built‑in or optional feature; check limits and proof requirements.
- Roadside assistance: Sometimes available as an add‑on or separate policy.
- Trailer liability: Liability may extend to a towed trailer; confirm scope and limits.
Things to check in the PDS
A few details make a big difference to how TPPD performs when you need it.
- Liability limit and legal costs: Understand the maximum the insurer will pay and how defence costs are treated.
- Uninsured driver benefit terms: Required evidence, maximum payout, excess handling and exclusions.
- Driver and use restrictions: Age limits, unlisted driver rules, and whether any business use is permitted.
- Excesses: Standard, age, and unlisted driver excesses — and when they stack.
- Territorial limits and towing/storage: Where cover applies and any cost caps after an incident.
How it compares to other types
TPPD is the basic optional property cover. It’s a step up from CTP (injuries only) but a step down from TPFT and Comprehensive.
- Versus Comprehensive: Much cheaper, but no cover for your car in a crash, weather, fire, theft or vandalism.
- Versus TPFT: TPFT adds theft and fire cover for your car; TPPD doesn’t.
- Versus CTP: CTP is mandatory injury cover and never pays for property; TPPD fills that liability gap.
State-based notes and special cases
TPPD works similarly nationwide, but remember how it sits alongside registration and permitted use.
- Separate to CTP and rego: CTP (or NSW Green Slip) covers injuries only and is required to register your car; TPPD is optional property cover.
- Choosing CTP insurers: In some states/territories you can choose your CTP provider; this doesn’t replace TPPD.
- Business and gig driving: Many personal policies exclude carrying passengers or goods for payment. If you do rideshare, taxi or courier work, ask National Cover for a specialised policy so you’re actually covered.
Example scenarios
Seeing TPPD in action clarifies what you’re buying — and what you’re not.
- At‑fault car park scrape: You clip a parked SUV and crack a headlight. TPPD covers the other driver’s repairs (after your excess). Your own scuffed bumper isn’t covered.
- Rear‑ended by an uninsured driver: You’re not at fault and the other driver has no insurance. If your TPPD includes an uninsured motorist benefit and you can identify them, your policy may contribute up to the stated limit toward your car’s repairs. Otherwise, you pursue the driver directly.
- Hailstorm dings your bonnet: No cover under TPPD for your car’s hail damage. Comprehensive would be required for weather events.
- Overnight theft: Your car is stolen from the street. TPPD won’t respond because it doesn’t include theft. TPFT or Comprehensive would.
TPPD is the no‑frills liability safeguard many drivers use to keep premiums down while still protecting their finances against the expensive part of most crashes: the damage you cause to someone else. If you’re comfortable self‑insuring your own car — or it’s simply not worth repairing at great cost — TPPD is a smart, honest fit. If theft, fire or your own crash damage would sting, consider stepping up to TPFT or Comprehensive next.
3. Third party fire and theft (TPFT)
TPFT sits in the middle of the types of car insurance coverage: it protects you against the expensive part of most accidents — damage you cause to other people’s property — and adds cover if your own car is stolen or catches fire. If you park on the street or live in a higher‑theft area, TPFT can be a smart step up from basic Third Party Property Damage without paying comprehensive premiums.
What it covers
At its core, TPFT combines third‑party property liability with cover for two big risks to your own car: theft and fire. Exact limits and inclusions vary by insurer, so always check the PDS.
- Damage to other people’s property: Your legal liability for accidental damage to other vehicles and property.
- Theft of your car: Repair or total loss payout if your vehicle is stolen, including reasonable recovery and towing costs.
- Fire damage to your car: Loss or damage if your car is destroyed or damaged by fire.
- Attempted theft (policy‑dependent): Some policies include damage caused during an attempted theft; others don’t — confirm in the PDS.
- Hire car after theft (policy‑dependent): Often offered with daily/total limits; availability and caps vary.
What it doesn’t cover
TPFT doesn’t behave like comprehensive cover. It won’t repair your car after a crash you cause, and it generally excludes many non‑fire, non‑theft events.
- Your car’s crash damage: No cover for collision damage to your vehicle if you’re at fault.
- Weather events: Hail, flood and storm damage to your car are typically not covered.
- Vandalism and malicious damage (standalone): Usually excluded unless it occurs as part of a covered theft event.
- Personal items in the car: Theft of belongings from your vehicle is commonly excluded under TPFT.
- Disallowed drivers/uses: DUI, unlicensed driving, excluded or unlisted drivers, or disallowed business use can void cover.
Who it suits
TPFT is a value play for drivers who can self‑insure some risks but don’t want to be left stranded by a theft or fire loss.
- Mid‑value cars parked on the street: You want theft and fire protection but can live without full crash cover.
- Budget‑minded owners: TPFT premiums are typically lower than comprehensive while covering two of the most financially painful risks.
- Urban or higher‑theft postcodes: Adds meaningful protection if vehicle theft rates are elevated.
- Drivers with permitted business use: If you carry passengers or goods for payment, choose a specialised policy; National Cover can arrange rideshare, taxi, courier and business motor cover.
Typical cost and excess
TPFT premiums usually sit between TPPD and Comprehensive. You can often tune your policy settings to balance price and protection.
- Mid‑tier premiums: Reflecting broader cover than TPPD but less than Comprehensive.
- Excess structure: Standard excess applies on property claims; age/unlisted driver excesses may apply on liability claims.
- Value basis: Market vs agreed value may be available; your choice affects payout method and premium.
- Security and usage: Garaging, anti‑theft devices and listed drivers can influence price.
Optional extras and features
While leaner than comprehensive, many TPFT policies offer a handful of useful options and built‑ins.
- Hire car after theft: Temporary wheels while your car is recovered/repaired or written off (limits apply).
- Windscreen/glass excess option: Reduced or one free windscreen repair (availability varies).
- Roadside assistance: Often available as an add‑on or separate plan.
- Locks and keys benefit: Contribution towards recoding/replacement if keys are stolen (check sub‑limits and conditions).
Things to check in the PDS
Small wording differences matter with TPFT. Spend a minute on these clauses so you know exactly what you’re buying.
- Theft and fire definitions: What counts as “theft,” “attempted theft” and “fire,” and any exclusions.
- Attempted theft cover: Explicitly confirm whether damage from an attempt (e.g. forced lock, smashed window) is included.
- Hire car after theft: Eligibility, daily/total limits, time caps and approved providers.
- Keys/locks and towing/storage limits: Sub‑limits and conditions after a theft event.
- Driver/use restrictions and excesses: Age, unlisted driver, and how excesses stack.
- Value basis and total loss rules: Market vs agreed value, salvage and write‑off thresholds.
How it compares to other types
TPFT is the compromise option: more than TPPD, less than Comprehensive, and separate from mandatory CTP.
- Versus TPPD: TPFT adds theft and fire cover for your car; TPPD doesn’t.
- Versus Comprehensive: TPFT won’t fix your car after a crash or weather/vandalism events; comprehensive will.
- Versus CTP: CTP only covers injuries/death from road accidents — never property or your car.
State-based notes and special cases
TPFT works similarly across Australia and sits alongside your registration requirements.
- CTP is separate and mandatory: In NSW you buy a Green Slip; elsewhere CTP is bundled or chosen at rego. CTP never covers property.
- Finance and leasing: Lenders typically require comprehensive cover, not TPFT.
- Business/gig driving: Many personal TPFT policies exclude carrying passengers or goods for payment. If that’s you, ask National Cover for the correct commercial or rideshare policy to keep cover valid.
Example scenarios
Real‑life examples show where TPFT shines — and where it stops.
- Your car is stolen overnight: TPFT covers the theft. If recovered with damage, repairs are covered; if written off, you’re paid per your value basis. A hire car after theft may apply if included.
- Electrical fire in the engine bay: Fire damages the front end. TPFT responds to repair or total loss, subject to excess and limits.
- You reverse into a pole: Your bumper and boot are crumpled. TPFT won’t cover your car’s damage, but it will cover any property you damaged that isn’t yours.
- Hail pummels your suburb: Dents across the roof and bonnet aren’t covered under TPFT; comprehensive would be required.
- Someone tries to steal it and trashes the lock: Some TPFT policies cover attempted theft damage; others don’t. This is a must‑check item in the PDS.
If theft or fire would put you off the road or out of pocket, but you’re comfortable self‑insuring crash damage to your own car, TPFT is the practical middle path. And if your risk tips beyond that — high hail exposure, street parking and a car you can’t easily replace — comprehensive cover is often the better value over the long run.
4. Compulsory third party (CTP)
CTP is the mandatory baseline that every registered vehicle in Australia must have. It covers people, not property: injuries and fatalities from road accidents. It sits alongside your optional property policies (Comprehensive, TPFT, TPPD), which handle vehicle and property damage. In NSW it’s bought separately as a Green Slip; elsewhere it’s generally bundled into registration.
What it covers
CTP exists to fund treatment, support and compensation when people are hurt on the road. Exact benefits differ by state or territory scheme, but the core promise is consistent.
- Injury and death from road accidents: Medical treatment, rehabilitation and, depending on the scheme, lost income support and other benefits.
- People involved, not just drivers: Typically covers drivers, passengers, pedestrians and cyclists injured in a motor vehicle accident.
- Liability protection for injuries: If you’re responsible for an accident, CTP responds to the injury component of claims.
What it doesn’t cover
CTP is not car insurance in the everyday sense. It won’t pay to repair or replace vehicles, even if you’re blameless.
- No property damage: It never covers damage to your car, other vehicles, fences, buildings or contents.
- No theft, fire, weather or vandalism: Those risks sit with optional property covers like Comprehensive or TPFT.
- Scheme‑specific exclusions: Benefits can be reduced or denied for illegal or excluded use (e.g., unlicensed or impaired driving), subject to local law.
Who it suits
Everyone who drives or registers a vehicle — because it’s compulsory. How you build on CTP depends on your risk and budget.
- All registered vehicles: CTP is a legal requirement Australia‑wide.
- Owners wanting full protection: Add TPPD, TPFT or Comprehensive to cover property damage, theft, fire and weather.
- Financed or newer cars: Usually need Comprehensive on top of CTP to satisfy lender requirements.
Typical cost and excess
CTP pricing and administration vary by state and territory. There’s usually no excess payable by you at claim time for injury benefits.
- Premiums vary: Based on location, vehicle class, and sometimes driver/claims history; paid with rego or as a separate Green Slip in NSW.
- No excess: CTP injury claims generally don’t involve an excess.
- Shop around where allowed: In jurisdictions where you can choose your CTP insurer, prices and included features can differ.
Optional extras and features
CTP is tightly regulated, so add‑ons are limited and scheme‑specific. What’s included — and for whom — depends on your state or territory.
- Benefit scope differs: Some schemes provide broader no‑fault benefits; others are more fault‑based.
- Insurer variations (where choice exists): In markets like NSW, different licensed CTP insurers may offer differing support services or features. Always check current details for your jurisdiction.
Things to check in the PDS
You won’t find a traditional PDS in every state, but there will be official scheme guides and, where applicable, insurer documents. Focus on how and when the scheme helps.
- Who is covered and when: Drivers, passengers, pedestrians and cyclists; any age or residence rules.
- Fault vs no‑fault settings: How blame affects eligibility and benefits in your jurisdiction.
- Benefit types and limits: Medical, rehab, income support, lump sums, time limits and thresholds.
- Conduct exclusions: Impact of DUI, unlicensed driving or criminal use on benefits.
- Claims process: Notification timeframes, medical assessments and dispute resolution.
- Interstate accidents: How coverage applies when a crash crosses borders.
How it compares to other types
Think of CTP as the foundation. It protects people, not things. Optional covers protect property and your own car.
- CTP vs property covers: CTP pays for injuries/death only; TPPD, TPFT and Comprehensive handle property damage.
- CTP vs Comprehensive: Comprehensive can fix or replace your car and cover others’ property; CTP can’t.
- CTP vs TPFT/TPPD: TPFT and TPPD don’t cover injuries — CTP does.
State-based notes and special cases
CTP is nationwide, but the way you buy it — and how benefits work — changes with the border.
- NSW: Purchased separately as a Green Slip from a licensed insurer when you register your vehicle.
- ACT: Known as Motor Accident Injuries (MAI) insurance.
- QLD, NSW, ACT, SA: Drivers generally have the option to choose a CTP insurer when paying registration.
- NT: Only one provider option.
- Other jurisdictions: CTP is typically included in registration fees via the state scheme.
- Remember: CTP never replaces property cover. Pair it with TPPD, TPFT or Comprehensive for vehicle/property protection.
Example scenarios
Seeing the boundary between injury and property helps you decide what else you need on top of CTP.
- You rear‑end another car and the driver is injured: CTP responds to their injury costs. Neither car’s repair bills are covered by CTP — you’d need Comprehensive to fix yours and cover their property, or TPPD to cover their property only.
- A pedestrian is struck at a crossing: CTP addresses the pedestrian’s injuries. Your bumper repairs require Comprehensive (your car) and/or liability property cover (if applicable).
- Single‑vehicle crash with you injured: Depending on your state’s scheme settings, CTP may provide injury benefits. There’s no cover for your car — Comprehensive is required for that.
- Hail damages your parked car, no one is hurt: CTP doesn’t apply; Comprehensive is the policy that would cover hail damage.
- Your car is stolen: CTP doesn’t respond. TPFT or Comprehensive would.
CTP keeps everyone on the road covered for the most important risk — people getting hurt. To protect your finances against the equally common problem of property damage and car loss, pair CTP with the right optional cover for your situation: TPPD for liability essentials, TPFT for theft/fire protection, or Comprehensive for the full suite.
Choosing your cover
Boil it down to three questions: Could you comfortably replace or repair your own car out of pocket? Where and how do you use it (street parking, storm belt, business or gig work)? And is the car financed or a keeper you’d hate to lose? CTP handles injuries only, so your real decision is which property cover matches your risk and budget.
- Choose Comprehensive if your car is financed, higher‑value, weather‑exposed, or you simply don’t want repair/replacement risk.
- Choose TPFT if theft/fire would sting but you can self‑insure your own crash damage.
- Choose TPPD if the car’s low value and you mainly need protection from the big bills you could cause others.
Still unsure? Get a tailored, price‑beat quote, the right policy for rideshare/taxi/courier or business use, and expert claims support with National Cover. Get covered with confidence today.
