CTP vs third party property vs fire and theft vs comprehensive
What each level of Australian car insurance pays for, who it suits and the gaps to watch.
Every registered vehicle in Australia carries compulsory third party (CTP) cover for injuries. The three optional types of private car insurance sit on top of CTP and deal with damage to property: other people's cars and property, and, depending on the level of cover, your own car. Read across a row to see how an option works and where it falls short. The details below are typical features; each insurer's PDS sets the actual cover, limits and exclusions.
Select a column header to sort.
| Option | What it pays for | Good for | Watch out for |
|---|---|---|---|
| CTP (compulsory, linked to rego) | Compensation for people injured or killed in a crash involving your vehicle, under your state or territory scheme | Every registered vehicle: it is not optional | Pays nothing for damage to any car or property; in fault-based states an at-fault driver's own injury cover is limited |
| CTP in VIC, WA, TAS, NT | Run by a state body (TAC, ICWA, MAIB, NT scheme) and charged inside the rego fee | No shopping around needed | You cannot choose the insurer or the price; check the scheme's benefits for at-fault drivers |
| CTP in NSW, QLD, SA, ACT | Private licensed insurers under a state regulator (SIRA, MAIC, CTP Insurance Regulator, ACT regulator) | Choosing a CTP insurer at rego time (in NSW, buying a Green Slip) | Benefits are set by the scheme, not the insurer; compare price and service only |
| Third party property damage | Your legal liability for damage you cause to other people's vehicles and property | Low-value cars you could afford to replace yourself | No cover for your own car's damage, theft, fire or hail beyond a limited uninsured motorist extension |
| Third party, fire and theft | Third party property plus loss or damage to your car from fire or theft | Cheaper cars parked where theft is a real risk | Fire and theft payout is often capped; no cover for your own car in an at-fault crash, hail or flood |
| Comprehensive (market value) | Your car's accident damage, theft, fire, storm, hail and flood, plus third party property | Most cars on finance or worth more than you could replace from savings | A total loss pays market value at the time, which may be less than you expect |
| Comprehensive (agreed value) | As comprehensive, with the insured value fixed in the schedule for the policy year | Owners who want certainty about a total loss payout | Agreed value can be set below or above real value; check it at every renewal |
| Optional extras | Hire car after an accident or theft, windscreen excess waiver, no claim bonus protection, excess reduction | Drivers who rely on one car or claim glass often | Each extra adds to the premium; compare whether it is built in elsewhere |
CTP cover differs by state and territory: check the State Insurance Regulatory Authority for NSW, the Transport Accident Commission for Victoria, the Motor Accident Insurance Commission for Queensland, the Insurance Commission of Western Australia and the Motor Accidents Insurance Board in Tasmania. For private car insurance, read the PDS and use Moneysmart for general guidance. Limits mentioned (such as fire and theft caps or uninsured motorist extensions) vary between insurers and are not guaranteed features.