Different types of car insurance explained

Learn what each level of cover offers

Average customer rating: 4.3/5
Written by Kenneth Young
Reviewed by Adrian Taylor
Updated March 8, 2024

Expert tips for choosing the right type of car insurance

Compare the Market’s car insurance expert, Adrian Taylor, has these tips for car owners looking to choose a level of cover for their vehicle.

Adrian Taylor
Executive General Manager – General Insurance

Consider adding a fully comprehensive cover to your car

Even if you use your car infrequently, having complete cover will save you money if you accidentally get into a car accident with another motorist or damage someone’s property whereas other levels of insurance could leave you having to pay out of your own pocket for any expenses.

Consider adding optional extras to your policy

Even with comprehensive cover, your car may still be vulnerable to being completely insured, if, for example, you are towing a trailer you would want covered or you are letting younger family members use the car safely with cover in case they have an accident.

Increase your excess to decrease your premium

Raising your standard excess payment on your policy reduces your upfront premium (this is not always available for every level of cover). Before you make any big changes, though, ask yourself: if you raise the excess, would you be able to afford to pay the higher price during an insurance claim?

Make sure you compare at least every 12 months

Every 12 months you should be comparing your existing car insurance policy and not just when you receive your renewal notice. What was a great deal for you 12 months ago may now be surpassed by a better deal in the market.

Always read a policy’s PDS for all restrictions and exclusions

As there are three different types of car insurance that offer varying degrees of cover, it’s vitally important to read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) to make an informed decision for your individual needs.

The different types of car insurance

What is comprehensive car insurance?

What is Third Party Fire and Theft insurance?

What is Third Party Property Damage insurance?

What is Compulsory Third Party insurance?

Car insurance coverage by type

Car insurance extras, features and options

Car insurance optional extras

Discounts and policy choices

Meet our car insurance expert, Adrian Taylor

Adrian Taylor
Executive General Manager – General Insurance

As Executive General Manager of General Insurance at Compare the Market, Adrian Taylor is passionate about demystifying car insurance for consumers, so they have a better understanding of what they’re covered for. Adrian’s goal is to make more information available from more insurers, to make it easier to compare and save.