Comprehensive car insurance
Comprehensive car insurance (also called full or fully comprehensive motor vehicle insurance) is the highest level of optional cover in Australia. It pays to repair or replace your own car after an accident, including one you caused, and covers damage you cause to other people's cars and property. It also covers your car for theft, fire and weather events such as storm, hail and flood.
It is the only level that pays for your own car when you are at fault or when nobody else is involved, which is why it costs more than third party cover. It does not cover everything, though, and the valuation, excess and exclusions differ enough between insurers that two comprehensive policies at the same price can pay out very differently.
By Better Rate Mate Editorial Team · Last reviewed
What comprehensive car insurance covers
Moneysmart describes comprehensive as covering damage to your car and other people's cars or property, even if you caused the accident, plus theft, fire and weather. In practice, a comprehensive policy usually responds to:
- Accidental damage to your car, whether you were at fault, not at fault, or nobody else was involved (for example hitting a kangaroo or a pole).
- Damage you cause to other people's vehicles and property, up to a liability limit set in the policy.
- Theft of the car, and damage done during an attempted theft.
- Fire damage.
- Storm, hail and flood damage, which neither third party level covers.
Included, optional or excluded
Beyond the core cover, policies differ in what they include as standard and what you pay extra for. The table shows the usual pattern; your Product Disclosure Statement (PDS) is what counts.
| Item | Commonly | What to check |
|---|---|---|
| Emergency repairs, towing and accommodation after an accident away from home | Often included, with limits | The dollar and distance limits |
| Hire car after theft | Often included | Number of days and daily limit |
| Hire car after an accident you caused | Often an optional extra | Whether you need it if you have a second car |
| Windscreen and window glass | Covered, with the excess; excess-free glass often optional | How many glass claims per year are excess-free |
| New car replacement after a total loss | Often included for newer cars | The age or kilometre limit that applies |
| Choice of repairer | Included on some policies, optional or absent on others | Whether you can use your own repairer |
| Personal items in the car | Included up to a modest limit | The limit and any exclusions for tools or electronics |
| Malicious damage and vandalism | Covered by many comprehensive policies, such as AAMI's and NRMA's; Moneysmart lists intentional damage among exclusions to compare | Whether you must report it to the police first (NRMA requires it) and which excesses apply |
| Mechanical failure, wear and tear, rust, depreciation | Excluded | Nothing: this is maintenance, not an insured event |
| Driver unlicensed, over the alcohol limit or drug-affected | Excluded | Also applies to licence conditions such as P-plate restrictions |
| Undeclared business, rideshare or delivery use | Excluded | Declare the use or buy a policy that covers it (see business car insurance) |
Agreed value or market value
Comprehensive lets you choose how the car is valued for a total loss. Agreed value is a fixed amount you and the insurer set when you take out or renew the policy. Market value is what the insurer assesses the car would have sold for just before it was stolen or written off, worked out at claim time using pricing guides and recent sales.
Agreed value gives certainty and usually costs more. It is not set-and-forget: Moneysmart warns insurers may reduce the agreed value each year while the premium goes up, and the Insurance Council notes that in the post-COVID used car boom many cars' market value rose above the agreed value their owners had chosen. Check the figure every renewal. Our agreed value vs market value guide goes through the choice in detail.
The excesses that stack
The basic excess applies to most claims. On top of it, many policies add an age excess for young drivers, an inexperienced-driver excess for drivers who have held a full licence for less than two years, an excess for drivers not listed on the policy, and sometimes an excess for high-performance cars. They stack, so a claim involving a young, unlisted driver can cost several times the headline figure (how excesses stack). Whether you pay when another driver was entirely at fault depends on the policy. Moneysmart says you generally pay the excess whether you are at fault or not, while some policies waive it if you can identify the at-fault driver and give the insurer their details.
Is comprehensive car insurance worth it?
Moneysmart frames the decision with a few questions: could you afford to be without your car, could you afford to repair or replace it yourself, is it parked on the street or at higher risk of theft, and do you have a loan on it. If the honest answer to any of those points to real hardship, comprehensive is worth its price.
It is harder to justify on an old, low-value car, where a year or two of premiums plus the excess can approach what the insurer would pay for a total loss. Even then, remember what you give up by stepping down: third party, fire and theft does not cover hail, flood or an accident you cause, and third party property damage covers nothing for your own car at all.
| Situation | Comprehensive? | Why |
|---|---|---|
| Car is under finance | Often required | Your lender may require it, and you would still owe the loan with no car |
| You could not replace the car from savings | Yes | A write-off or theft would leave you without transport |
| Car is parked on the street in a hail or theft hotspot | Yes | Weather and theft risk is high and only comprehensive covers hail. Victoria recorded the most motor vehicle theft victims of any state in 2025: see car insurance in Victoria |
| Car is worth little and you have another | Maybe not | Third party property damage still protects you from the big liability risk; third party, fire and theft adds theft and fire |
Does comprehensive car insurance include CTP?
No. Compulsory third party (CTP) is a separate, compulsory cover for injury to people, and it is dealt with through your registration. Comprehensive covers damage to cars and property. In NSW you buy the Green Slip separately from a CTP insurer; in most other states CTP is paid with your registration. Holding comprehensive does not mean you have CTP, and holding CTP does not mean your car is covered.
Can I drive any car, or my partner's car, if I have comprehensive insurance?
Generally no. Australian comprehensive policies insure a specific vehicle rather than you as a driver. If you borrow your partner's or a friend's car, their policy is the one that responds, with whatever excess applies to a driver like you. If you are not listed on it, an unlisted driver excess may apply, and some policies, such as Budget Direct's, do not cover a household member who is not listed. If you regularly drive your partner's car, ask for both of you to be listed on its policy.
Your own policy may still help in one situation: some insurers cover your legal liability while you drive a borrowed substitute car because yours cannot be driven, for example while it is being repaired. AAMI, NRMA and RACQ all include a version of this, with limits; AAMI's lasts up to 14 days and excludes hire cars. A hire car is different again: the rental company's excess applies, and our guide to rental car excess insurance explains the options.
How to compare comprehensive quotes
Hold everything constant except the insurer: the same basic excess, the same listed drivers, the same agreed or market value, the same extras such as a hire car. Then compare the two or three cheapest on the terms that decide what a claim is worth: the valuation, the stacked excess for whoever actually drives, choice of repairer, and the hire car limits. Moneysmart also notes that the same underwriter can sell near-identical cover under different brand names at different prices, so a brand name alone is not a reason to pay more.
Making a claim
The Insurance Council estimates around one in seven people with car insurance make a claim in any given year, according to Moneysmart. After you lodge a claim, Moneysmart says the insurer must contact you within 10 business days, and any rejection must be in writing. If you disagree with a decision, complain to the insurer's internal dispute resolution team first, then to the Australian Financial Complaints Authority (AFCA), which is free.
What to watch for
- Check the agreed value at every renewal. It can fall while the premium rises.
- Add up the excesses for whoever actually drives the car, not just the basic excess.
- Choice of repairer is not standard. Check it if you want your own mechanic.
- Declare modifications, rideshare, delivery or business use. Undeclared use is a common reason claims are refused.
- Many policies exclude damage from deliberately driving into floodwater, even under comprehensive.
Common questions
What is not covered by comprehensive car insurance?
Common exclusions include mechanical failure, wear and tear, rust and depreciation; damage while the driver was unlicensed, drunk or drug-affected; undeclared business, rideshare or delivery use; undeclared modifications; and, on many policies, damage from deliberately driving into floodwater. Injury to people is covered by CTP, not comprehensive.
Does comprehensive car insurance cover hail and flood?
Yes, comprehensive generally covers storm, hail and flood damage to your car. Check how the policy defines flood and whether it excludes driving into floodwater.
Is comprehensive car insurance worth it on an older car?
It depends on what the car is worth against the premium and excess, and whether you could cope without it. Once the likely payout approaches a year or two of premiums plus the excess, third party property damage often makes more sense, as long as you can absorb the loss of your own car.
Does comprehensive insurance cover me if someone else drives my car?
Usually, if they are licensed and not excluded, but an age, inexperienced or unlisted driver excess may apply, and some policies cover listed drivers only. Check which kind you have.
Does comprehensive car insurance include CTP?
No. CTP is separate compulsory cover for injury to people, handled through your registration or, in NSW, a separate Green Slip.
What is the difference between agreed value and market value?
Agreed value is a fixed payout set when you take out or renew the policy. Market value is assessed at the time of the claim based on what the car would have sold for. Agreed value usually costs more but removes the uncertainty.
Who has the cheapest comprehensive car insurance?
No insurer is cheapest for every driver. Each one prices your age, postcode, car and claims history differently, so the same car can be cheapest with one insurer and mid-range with the next. Compare quotes with the same excess, the same agreed or market value and the same listed drivers, then check what each policy leaves out.
What should you not tell your insurance company?
Nothing you are asked about should be left out or misstated. Under section 20B of the Insurance Contracts Act 1984, which applies to consumer policies entered into from 5 October 2021, you have a duty to take reasonable care not to make a misrepresentation when you answer an insurer's questions. A wrong or incomplete answer about who drives the car, where it is kept, how it is used, modifications or your claims history can lead to a reduced or refused claim, or a cancelled policy.
Can I be listed on my parent's car insurance?
Usually, yes. A comprehensive policy insures the car, and the policyholder can ask the insurer to list you as a driver. Listing you can change the premium and the excess, especially if you are under 25 or have held a full licence for less than two years. If you drive the car regularly and are not listed, an unlisted driver excess may apply, and some policies, such as Budget Direct's, do not cover a household member who is not listed.
