Home > Car Insurance > Third Party vs Comprehensive Car Insurance
Learn the differences between third party and comprehensive car insurance and how to choose the best policy for you in Savvy’s useful guide.
Author
Savvy Editorial TeamFact checked
Car insurance is essential to protect your and your vehicle when on the road. In Australia, there are two main types of optional car insurance available: third party and comprehensive. Each offers distinct coverage and benefits, and understanding their differences can help you make an informed decision that suits your needs and budget.
In this informative guide, Savvy takes you through the different types of car insurance, weighing up their pros and cons to help you find insurance cover to suit your needs.
Third party car insurance is the most basic form of car insurance. In Australia, there are two tiers of third party cover: third party property damage (TPPD) and third party fire and theft (TPFT). TPPD provides cover for damage you cause to another person’s vehicle or property with your car, while TPFT also covers damage to your own car through fire or theft.
Pros:
Cons:
Comprehensive car insurance provides a more extensive level of coverage compared to third party insurance. It not only covers damage to other people’s property but also protects your vehicle against accidents, theft, fire and other insured events.
Pros:
Cons:
Whether to choose third party or comprehensive car insurance depends on various factors, including your budget, the value of your car and your risk tolerance.
Reasons to choose third party car insurance include:
Reasons to choose comprehensive car insurance include:
Ultimately, you should take into account your unique circumstances to make an informed choice that best suits your priorities and needs and offers you peace of mind when behind the wheel.
Disclaimer:
Savvy (ABN 78 660 493 194, ACR 541 339) provides readers with a variety of car insurance policies to compare. Savvy earns a commission from our partnered insurers each time a customer buys a car insurance policy via our website. All purchases are conducted via our partners’ websites. The integrity of our comparison service is unaffected by our partnerships with those businesses and our effort remains to bring further brands that do not already use our comparison service onboard.
Savvy’s comparison service includes selected products from a panel of trusted insurers and does not compare all products in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy. We always recommend readers to consult the Product Disclosure Statement (PDS) of different policies before purchasing your car insurance.
© Copyright 2023 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
ABN 78 660 493 194. ACR Number 541 339.