About Types of Car Insurance
If your car is new, valuable, or used often — it covers both your own car and third-party claims.
If your car is older and you want basic protection plus fire and theft cover for your own car.
If you only want the most basic cover — it protects others, but not damage to your own car.
Comparison of coverage types
| Coverage type | 3rd-party injury/death | 3rd-party property | Fire/theft to your car | Accident damage to your car | Best for |
|---|---|---|---|---|---|
| Comprehensive | ✓ | ✓ | ✓ | ✓ | Newer, higher-value, or frequently used cars |
| Third Party, Fire & Theft | ✓ | ✓ | ✓ | — | Older cars that still need fire/theft protection |
| Third Party | ✓ | ✓ | — | — | Basic legal and liability protection |
| Act Cover | ✓ | ~ | — | — | Minimum legal requirement only |
The four coverage types
Comprehensive Cover
The widest type of cover. It covers third-party liabilities and damage to your own vehicle from accidents, fire, or theft. Usually most suitable if your car is new, still valuable, or used frequently — it reduces the risk of paying expensive repair costs out of pocket.
Can be extended with add-ons:- Special Perils / flood
- Windscreen cover
- All drivers cover
- Personal Accident
- NCD Relief
- Key replacement
- CART
- Roadside assistance
Third Party, Fire & Theft (TPFT)
Gives more protection than Third Party Cover. It covers third-party claims for injury, death, or property damage, and also covers your own car if it's stolen or damaged by fire. It does not cover damage to your own car from a normal accident — if you hit another car, you may pay your own repair cost. Usually considered for older, lower-value, or rarely used cars.
Third Party Cover
A basic type of cover. It protects you if your vehicle causes injury, death, or property damage to someone else. For example, if you damage another person's car, it can cover the third-party claim. It does not cover your own car — if your vehicle is damaged, stolen, burned, or flooded, you usually pay the repair or replacement cost yourself.
Act Cover
The minimum cover required by law. It mainly covers third-party injury or death as required under motor vehicle legislation. This is the most basic form and gives very limited protection — it doesn't meaningfully cover your own car, fire, theft, or wider third-party property needs. For most owners, Third Party, TPFT, or Comprehensive is more practical.
How to choose the right coverage
Check your car's age and value
If your car is new or still has high market value, Comprehensive is usually more suitable because repair costs can be expensive. For older cars, some owners consider TPFT or Third Party if the market value is low and they'll bear their own repair cost.
Think about how often you use your car
If you drive daily, travel long distances, or depend on your car for work, Comprehensive gives stronger protection. If your car is rarely used, a lower option may work — but understand what isn't covered.
Compare market value vs agreed value
Your car may be insured on market value (payout based on the car's value at time of loss) or agreed value (you and the insurer agree the insured amount at the start; payout follows that agreed value if stolen or total loss).
Look at add-ons, not just the base plan
A cheaper plan may not include what you need. Check whether you need: flood / Special Perils, windscreen, roadside assistance, Personal Accident, CART / daily repair allowance, key replacement, NCD Relief.
Understand NCD, excess and betterment
Your No Claim Discount (NCD) lowers your premium if you don't claim. Check your excess — what you pay before the insurer covers the rest. For older cars, betterment may apply when old parts are replaced with new ones.
Read the Product Disclosure Sheet
Before buying, read the Product Disclosure Sheet (PDS) and policy wording. Check what's covered, what's excluded, how claims work, and whether add-ons are needed. If unsure, ask your insurer or compare details before paying.