Choosing car insurance: Comprehensive vs Third Party

Which level of cover is right for you? This guide will help you decide.

When you’re choosing car insurance it’s important you have the facts so you can make an informed decision. Understanding what you’re covered for will help you avoid unexpected costs and provide maximum peace of mind.

First off, all car owners need Compulsory Third Party (CTP) insurance – it’s a legal requirement. CTP protects people injured by your car if you cause an accident and, provided your car is registered, you’ll already have it.

While CTP covers personal injury claims arising from an accident you’ve caused, it doesn’t cover the cost of damage to your or anyone else’s car or property. That’s where Comprehensive and Third Party insurance come in.

Which policy you choose depends on how much protection you want. You might also factor in the value of your car and how you use it. If you drive a more expensive car you’ll probably want the benefits of Comprehensive cover. Our Comprehensive insurance also includes emergency accommodation and transport, which may come in handy if you travel long distances. If you’re more concerned about avoiding a hefty repair bill for someone else’s car, basic Third Party cover might be enough for you.

To give you maximum flexibility we offer five levels of cover. Here’s a breakdown:

  1. Comprehensive
    Comprehensive insurance is our highest level of cover. It includes accident damage, fire and theft and damage to other people’s cars and property. The cover extends to anyone driving your car. When purchasing this insurance you can choose to receive the Market Value or Agreed Value of your car if it’s written off. The Market Value is what we calculate it’s worth at the time of the accident. Choosing an Agreed Value will mean you’ll probably have a higher premium, but you’re guaranteed to get the agreed amount if your car is deemed a write-off. You’re also able to boost your cover through our range of optional benefits.
  2. Comprehensive (preferred driver)
    Offers all the benefits of standard Comprehensive cover, but you’ll pay less for your insurance as it only covers drivers aged 24 or older (on a full licence).
  3. Comprehensive (nominated driver)
    The same benefits as Comprehensive cover, for two named drivers only (the main driver must be at least 21). This is another way to lower the cost of your policy.
  4. Third Party Only
    Covers damage to other people’s cars and property, but not your own car.
  5. Third Party Fire and Theft
    The same benefits as Third Party Only, with additional cover if your car is stolen or is damaged by fire. It doesn’t cover any other damage to your car.

For more on what’s covered under each policy go to QBE Car insurance.

If you’d like to talk through your options we’re here to help. Call us on 133 723.