What is comprehensive car insurance?
If you’ve ever wondered what ‘comprehensive car insurance’ covers – and what it doesn’t – you’re not alone. Put simply, comprehensive car insurance can help cover accidental loss or damage to your car, plus damage your car causes to someone else’s property.
Cover may vary from policy to policy so in this guide, we’ll take you through what a comprehensive car insurance policy usually covers, and a few things to keep in mind before you buy.
What does comprehensive car insurance cover?
Comprehensive car insurance typically covers a wide range of events that may damage your car, and includes cover for legal liability if you damage someone else’s property with your car.
Depending on the cover selected, there may be cover whether you’re at fault or not. For example, if you hit another car, reverse into a pole, or your car is stolen.
QBE’s Comprehensive Car Insurance includes:
- Accidental damage, fire and theft
- Three-year new car replacement (conditions apply)
- Hire car after an accident that wasn’t your fault
- Guaranteed repairs, for as long as you own the car
- Damage to other people’s property caused by your car
- Plus more
You can also choose to include cover for:
- Hire Car – Extra
- ‘No Excess’ Windscreen cover (conditions apply)
- Choice of repairer
Related article: CTP, comprehensive and third party cover explained
Cover for your car
If your car is damaged or stolen, comprehensive car insurance may cover repairs or replacement of the car, or pay you an amount if it’s written off. The cover for these scenarios is dependent on the policy terms, any applicable excesses, the actual loss, and cover choices such as whether you’ve chosen market value or for an agreed value.
Legal liability for other people’s property
Comprehensive car insurance usually includes legal liability protection if you cause damage to someone else’s car or property using your car. This is important as repair and legal costs can add up quickly.
Common built-in features
Many comprehensive car insurance policies also include a few practical extras to make life easier after an incident. This might include cover for costs like towing , storage, emergency transport, and limited cover for certain personal items.
When weighing up policies, check the PDS so you know what you’re covered for and what the limits are.
What doesn’t comprehensive car insurance cover?
Comprehensive car insurance policies vary from insurer to insurer, but the most common exclusions may be:
- Illegal or reckless use of your car, including street racing
- Driving without a valid licence
- As part of a car sharing service or platform for reward
Related article: 5 things people ask about car insurance
Agreed value vs market value: why it matters
Under a comprehensive car insurance policy, when you insure your car, you can choose to be covered for an agreed value, or market value. These are:
Agreed value – a set amount agreed between you and your insurer for the policy period.
Market value – the value of your car in your local market immediately before the incident.
If you’re unsure which option suits you, it can help to compare the premium of each option.
How does an excess work?
An excess is the amount you must pay in the event of a claim. You can set this amount when setting up your policy.
Depending on your policy, other excesses, such as an age or additional driver excess may also apply. Whatever you choose, it’s important that you consider whether you can afford the upfront excess amount if you were to make a claim.
How to choose the right comprehensive policy for you
Before you sign up, it’s worth double checking:
- What’s covered – and any exclusions
- Whether your car is insured for agreed or market value
- Excess amounts and when they apply
- Any optional extras you want (like hire car cover)
- Limits on benefits (for example, personal items or accommodation)
If you’re comparing cover, take a moment to check the fine print so you know what’s included (and what isn’t) to avoid surprises later.
When it comes to protecting Australians on the road, QBE is at the heart of it.
