What is comprehensive car insurance?
Comprehensive car insurance is the highest level of optional car insurance you can stack on top of the mandatory ‘compulsory third-party’ (CTP) insurance every motorist must have.
While CTP covers injuries or death you cause to yourself, passengers, other drivers and pedestrians, comprehensive car insurance covers you for nearly everything else: your car, their car, other property and financial damages others incur.
It also covers your car against natural events like floods and hail, and will often cover damage to your car caused by an uninsured driver.
What does comprehensive car insurance cover?
Let’s dig a little deeper at some of the features included in most comprehensive car insurance policies. These cover areas are what truly set comprehensive policies apart from lesser policies.
Accidental damage. Pays for towing, repairs or replacements if your car is damaged in an accident you cause. For example, you hit someone else or crash into a wall.
Natural events. Covers you for damages due to natural events like hail, flood or falling branches.
Uninsured drivers. Covers damages to your car if an uninsured driver hits you and damages your car.
Theft. Covers you if someone steals your car and it’s never found or comes back damaged.
Accidental damage to others. Covers damages you cause to others’ cars, property, animals or finances (for example if they have to miss work). Lesser policies also provide this cover, but you won’t need to double up since it’s also included in comprehensive policies.
All insurance companies are required to outline in full detail what exactly they cover in a document called the product disclosure statement (PDS).
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💡 Top tip: The insurer will usually have a link at the bottom of their policy page, which leads to a section of the site where you can download the PDS of any live policy.
Use our table above to compare major high-level features, and then consult the PDS of those you are interested in.
Learn more about how to read a PDS.
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Other features of comprehensive car insurance
Your comprehensive car insurance policy will probably contain a few standard ‘perks’ that will make life easier after an accident.
Travel and accommodation. If your car needs towing and you’re far from home, many policies will pay for you to get back home or cover the costs of a hotel.
Emergency repairs. If immediate repairs will help get your car running again safely, your policy may cover these repairs before getting it assessed further.
New for old replacement. For brand new cars with low mileage, many policies will replace your car with a new one of similar make and model, if yours is damaged beyond repair. Without this feature, you’ll still be covered but only up to the dollar amount you’re covered for, which can be either an agreed value or market value.
Not-at-fault hire car. Most comprehensive policies will pay for a hire car while your car is being repaired due to an incident covered by your policy, where you weren’t at fault.
Personal items. Most comprehensive policies will cover you for a token amount toward personal items (like child safety seats, laptops or cameras) if they were damaged or destroyed as part of a larger covered event (like a collision or natural event). You may even be able to increase the dollar amount covered by paying a little extra on your premium.
Choice of excess. The excess is a dollar figure, specified in your policy, that you agree to pay whenever you claim. Most policies (comprehensive or otherwise) allow you to select your level of excess. Your choices can range from $0 to $2000 or more. A higher excess usually means lower premiums, and vice versa.
LEARN MORE ABOUT HOW EXCESS WORKS
Use our comparison table above or consult the PDS of any policies you’re interested in to see if a policy offers these perks, for what dollar amount and under what conditions.
Optional add-ons for comprehensive car insurance
The following features are often available to add to your comprehensive cover, but since they aren’t standard features, they typically cost a few bucks more to add them:
Roadside assistance. This will send someone out to help you if you’re left stranded due to minor mishaps like a dead battery, minor electrical fault, flat tyre, you run out of gas or lock your keys in the car. Under this cover, the service is usually free, but you may still have to pay out of pocket if they need to install new parts like a brand new battery or tyre.
Choice of repairer. Most insurance companies prefer to use a repairer in their own network, but if you have a mechanic you trust more, you can usually pay a bit extra for the right to use your guy instead.
Reduced or waived windshield excess. With this feature, your excess is reduced or waived for damage solely affecting your windscreen or other window glass, meaning you won't have to pay out-of-pocket for that pebble that flies up out of nowhere.
At-fault hire car. This provides you with a hire car to use while your car is being repaired due to an incident in which you were at fault.
Agreed value. Agreed value is a firm dollar amount you and your insurance company agree on at the time you open your policy, regardless of any depreciation prior to the accident.
💡 Agreed vs market value: Without this agreed value feature, you’ll likely only be covered for your car’s market value, or the going market rate for a similar car at the time of the accident. This can be considerably less than what you paid for the car depending on how your car has aged and the current market rate for something similar. |
Some car insurance companies will bundle some or all of these into a more expensive product called Comprehensive Plus or Premium car insurance. These are just unofficial labels some insurance companies use to refer to comprehensive car insurance policies with all the bells and whistles included.
How much is comprehensive car insurance?
Our 2023 Mozo Car Insurance Report found that the average Aussie pays $1472 per year on car insurance. Keep in mind this includes all levels of cover, cars of all ages, makes and models, and among drivers of all ages and driving histories.
But the fact is, the cost of a car insurance policy can change significantly depending on a variety of behavioural and situational factors unique to you and your car, like your age, location, parking situation, driving history, make and model of your car and more.
They'll use this data to assign each policyholder a risk profile, which they’ll use to calculate your premiums, so it's tricky to know exactly what you'll end up paying until you’ve actually requested a quote.
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💡 Top tip. Use quotes for research. It’s obligation-free, quick and straightforward. Just find a few policies you like from our comparison table above, follow the link to the quote page. Then simply fill in the requested details, click ‘get quote’ and within seconds you’ll get an estimate of your premium.
It’s completely up to you if you want to take the next steps and make the purchase.
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LEARN MORE ABOUT CAR INSURANCE QUOTES
What’s the best comprehensive car insurance?
Our expert insurance experts and analysts place the best car insurance policies in Australia into one of two categories:
Exceptional value. Comprehensive car insurance policies that hit that sweet spot between price and must-have features.
Exceptional quality. Comprehensive car insurance policies that stand out for their generous perks and flexible options, price aside.
The definition of “best” differs from person to person. So if either of these categories speak to you, check out our top picks in those categories on our 2023 Mozo Experts Choice Awards page.
DISCOVER OUR AWARD WINNERS
What’s the cheapest comprehensive car insurance?
You can’t go wrong checking out our Exceptional Value comprehensive car insurance picks mentioned above. They’re the cheapest we’ve found based on our requirement that they contain all the essential features most drivers need in a comprehensive policy.
But if you want more help, our guide to cheap car insurance explains ways you can bring your premiums even lower via discounts and other methods.
CHEAP CAR INSURANCE GUIDE
