24 Nov 2022
Comprehensive vs third party car insurance
Article

Comprehensive vs third party car insurance

This article was originally published in April 2018 and has been updated.

Which level of car insurance is right for you?

When choosing car insurance, it’s important to have all the facts. Understanding coverage, premiums and excess will help you make an informed decision and help avoid unexpected costs. Australian insurers offer two types of car insurance: comprehensive and third party. In this article, we compare comprehensive vs third party car insurance.

But first, the basics – CTP.

What does Compulsory Third Party (CTP) insurance cover?

Australian drivers must legally have Compulsory Third Party (CTP) insurance.

CTP insurance covers personal injury claims arising from an accident you’ve caused. Cover differs between states and territories, so visit our CTP insurance hub for the most relevant information.

CTP doesn’t cover car or property damage costs – that’s where comprehensive and third party insurance come in. But in the case of comprehensive car insurance vs third party insurance, what is the best option for you?

Comprehensive vs third party car insurance Australia

QBE offers two levels of car insurance in addition to CTP insurance. Here's what you need to know about our Comprehensive Car Insurance vs Third Party Property Damage Car Insurance.

Comprehensive Car Insurance

QBE’s Comprehensive Car Insurance is our highest level of protection. It covers your car for accidental damage, fire and theft, and damage your car may cause to other people’s vehicles and/or property.

When purchasing this insurance, you can choose either a Market Value or Agreed Value policy.

  • Market Value

    This is the value of your car in your local area immediately before the incident. We use recognised industry guides and consider the car’s general condition, make, model, age, kilometres travelled, legal after-market modifications and accessories to determine the market value.

  • Agreed Value

    This is a fixed amount that insures your car for a chosen value. You can select the amount you and QBE agree to insure your car for from a range we provide. Agreed Value policies are generally more expensive than Market Value, and your chosen level will impact your premium.

You can also boost your cover through our range of optional benefits.

Third Party Property Damage Car Insurance

QBE’s Third Party Property Damage Car Insurance is a lesser cover car insurance option. It covers the legal liability that arises from damage to someone else’s property or vehicle, caused by the use of your car for up to $30 million. This product doesn’t cover damage to your car, except for our ‘Damage caused by an uninsured driver’ standard feature, or unless you have extended your policy to cover fire and theft up to $10,000.

Deciding between comprehensive vs third party car insurance

Choosing a comprehensive car insurance vs third party insurance policy will come down to how much protection you want and the premium you would be willing to pay. Consider the value of your car, how you use your car and who will be driving your car.

If you want to be covered for damage to a new or expensive car, you might decide you want the benefits of comprehensive cover. If you’re only concerned about avoiding a hefty repair bill for someone else’s car, third party property damage car insurance might be enough for you.

If you’d like to talk through your car insurance options, we’re here to help. Call us on 133 723.


This insurance is underwritten by QBE Insurance (Australia) Limited (ABN 78 003 191 035, AFSL 239545) (QBE). Any advice provided is general only and has been prepared without taking into account your objectives, financial situation or needs and may not be right for you. To decide if this product is right for you, please read the relevant Combined Financial Services Guide, Product Disclosure Statement (PDS) and Target Market Determination (TMD).

QBE Insurance (Australia) Limited (ABN 78 003 191 035) (QBE). QBE holds a CTP license and issues CTP policies in NSW, QLD and SA.

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