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Comprehensive Car Insurance vs.Third Party Insurance in Australia

Comprehensive Car Insurance vs.Third Party Insurance

Are you looking for the different types of motor insurance in Australia? Are you unable to locate which coverage best meets your needs? Are you specifically looking for the comparison between comprehensive car insurance and third party insurance? Are you unaware whether car insurance is cheaper on older cars? Are you searching what third party liability stands for? Are you striving to know the benefits of comprehensive car insurance and third party insurance?

 

Don’t worry we are at your back to help you choose the best coverage for your car.  Here in this article, we provide you a detailed comparison of comprehensive car insurance and third party insurance. So that you would be able to make a sound decision and save yourself from a heavy financial loss.

 

Four types of car insurance policies are available in Australia i.e. compulsory third party insurance, third party property insurance, comprehensive car insurance and third party fire & theft insurance policy. If you are an Australian citizen then you must be aware of the fact that registration of compulsory third party insurance is a must before you take your car on the road. However, this car coverage doesn’t benefit you if you have a collision with another car. It only covers the medical expenses of a person who gets injured while you were driving. If you want to know the details of all four types of coverage click here.

 

That means, you need another coverage to bear the lose that happened to your car and the car you have collided with. It could be third party fire & theft cover, comprehensive car insurance or third party insurance. But today we are going to discuss the basic difference between the comprehensive car insurance and third party property cover.  

What is Comprehensive Car Insurance and what does it cover?

Comprehensive car insurance covers the repair and replacement cost of your own vehicle. It provides coverage against damage to your vehicle caused by events like fire, theft, malicious damage and weather related damage. It is considered as best car insurance and most commonly used type in Australia. It is well suited for senior car insurance that could be attained at cheaper quotes. Emergency repairs, costs of malicious damage, theft, fire, weather-damage, collision and transportation costs are readily covered in this category of car insurance. In short, comprehensive car insurance policy covers the damage that happens due to the following:

 

  • Theft
  • Vandalism, fire, riots, and explosions
  • Windshield and glass damage
  • Falling objects
  • Rocks/objects kicked up by or falling off cars
  • Natural disasters
  • Accidents with animals

 

What is third party car insurance and what it covers?

If you are a new driver or you often panic from road traffic and trying to drive more confidently, you don’t need to worry now. Third party property car insurance gives you that kind of confidence. Some car insurers in Australia provide you financial coverage over loss of other party vehicle caused by your car. However, it does not provide you full compensation over damage of your own car but a certain amount settled upon the agreement time. It is the cheapest car insurance in which having a collision of your low-valued vehicle with more valuable vehicle of damaged party is easily bearable by the insured individual. Next time when you are on your wheels, don’t get troubled by legal costs and claims services against you on the road.

What is third party liability insurance?

Before making a comparison between the comprehensive car coverage and third party insurance plan, develop a clear understanding of third party liability.

If you want your liability on the road get paid then third party liability is the only way that can help you. Although third party liability insurance is the cheapest type of car insurance but it can save a lot of your money because a liability can cost you a lot more than your car. For instance, if you hit a Porsche, then the Porsche driver is your third party and the liability is that you have to pay for the damage caused to his car due to your fault. It’s a better idea to keep you on the safe side, get a third party liability insurance.   

Difference between comprehensive car insurance and Third party insurance

Both auto insurance policies differ from each other in terms of their purpose and coverage. Outlined below are some of the major differences between the two:

Comprehensive car insurance

Third party car insurance

Comprehensive car insurance is called an all-round cover for your car. It not only takes care of your third party liability but provides full coverage to your own personal vehicle.

 

Unlike comprehensive car insurance, third party property insurance plan only covers the third party liabilities.

 

This insurance policy protects your own vehicle. It provides extensive coverage to your car against damage, theft or natural disaster events. 

 

Unfortunately, third party insurance does not provide any coverage to our own vehicle.

However, some insurers in Australia cover a limited amount of damage caused to your vehicle if you have a collision with an uninsured driver.  

As comprehensive car insurance provides a wide range of protection for your own vehicle therefore it comes at higher premiums than third party insurance.

The premiums in third party insurance are much lower than comprehensive car insurance plan. It is because this insurance policy only covers the third party vehicle damage.

 

This auto insurance policy is chosen by those who have just bought their own brand new car of high value or those who have taken a car loan to buy their dream car.

 

This insurance plan is mostly chosen by those who possess an old vehicle or car of low value.

 

Benefits of Comprehensive car insurance and Third Party insurance

Comprehensive car insurance and third party insurance provides coverage facility to the car owner. Let’s differentiate both the policies on the basis of the benefits both coverage provides to their car owners.

Comprehensive car insurance

Third party car insurance

This insurance policy covers your car from any damage from fire accidents, natural calamities and theft.

This coverage facilitates you on both no fault claim and fault liability claim.

 

It is an all-inclusive protection for your own vehicle.

It gives financial assistance to the third party on your behalf.

 

This type of car insurance also provides coverage to the personal accident. It takes care of injuries of the driver of the car in case of an accident.

It saves you from the legal responsibility of damaging other vehicles with your four-wheeler.

 

 

After getting the handful information on the basic difference between the two types of car insurance policies, you are in a position to take a wise decision of purchasing a policy that best meets your requirements.  But remember always make it a priority to add an extra layer of protection to your car other than a compulsory third party insurance.

 

Factors to consider before buying any car insurance

Whether you buy comprehensive car insurance policy or third party car insurance for your four-wheeler, there are some of the factors that you need to keep in your mind.

  • Car’s IDV

Always check your car’s IDV. IDV is basically your car’s insured declared value.

  • Car’s Age

You must know your car’s age before making a quick decision about purchasing a car insurance policy. Determination of your car’s age helps to choose the right add ons for your four-wheeler.

  • Car’s Usage

Select an insurance policy on the basis of your car’s usage. If you regularly drive your car, then go for the comprehensive car insurance policy otherwise choose third party insurance.  

 

How to find the best car insurance?

  • Give more time to search the appropriate policy

Before purchasing any car insurance for your four-wheeler, give some time in looking for a reliable source of information. Compare the different auto insurance policies and understand that which plan best suits you according to your current needs. Shop around and find a better deal for yourself.

  • Get quotes from different insurers

Don’t rush into purchasing coverage at high rates. Get car insurance quotes from different insurers and compare them in relation to the level of cover offered.

  • Security is important for your vehicle

If you are planning to buy third party coverage for your car then keep your vehicle with security system or at least parked them inside the garage overnight. In these cases, the provided insurance is less expensive.

  • Purchase your car insurance policy online

Majority of the car insurers’ offer a reasonable discount to the insured (car owner) for purchasing their policies online. Search such insurers and make a [purchase with them.

 

With all the useful information, we are sure that you choose the best policy for your car and save yourself from any uncertainty while driving on road.

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