You can’t always prevent a car accident, but you can plan ahead and protect yourself. The right kind of car insurance cover can protect you from expensive bills or lawsuits following a crash, theft, fire or damage. Here’s a quick guide to the types of car insurance here in WA.

Compulsory third party (CTP) insurance

Compulsory third party (CTP) insurance is a minimum and compulsory level of cover in Australia. You automatically get CTP insurance in WA when you pay your car registration. CTP covers you against personal injury you might cause to another person in a car accident or incident.

This means that you’re covered if you’re held responsible for any injuries or fatalities to third parties caused in an accident.

CTP does not cover damage to cars, vehicles or property. So if you’re responsible for an accident, you could be liable for tens of thousands of dollars of damage to other cars or property if you only have CTP insurance. It’s always worth considering additional insurance to give you extra cover, just in case.

Third party car insurance

Third party car insurance covers you for damage, legal costs and repairs to other (third party) vehicles or property in an accident.

Unless otherwise stated, third party car insurance doesn’t cover you for the cost of repairs or replacement for your own car, or the cost of replacing your car if it gets stolen.

Third party insurance may include uninsured driver cover, so if you’re in an accident with an uninsured driver who is at fault, repairs to your car could be covered up to a limit.

Third party with fire and theft

A step up from third party car insurance, this level of insurance will cover damage to your car caused by fire or theft.

Some insurers may include uninsured driver cover, which means if you’re involved in an accident with an uninsured driver and the uninsured driver is at fault, repairs to your car could be covered up to a limit.

Comprehensive car insurance

Comprehensive car insurance is the highest level of car insurance cover. It usually covers:
  • Repair and replacement of your car due to fire, theft, malicious damage, accidental damage and weather-related damage.
  • Repair and replacement of any other vehicles or property that are damaged by your car in an accident.

Comprehensive car insurance covers you for the cost of repairs regardless of who is responsible for the damage. It costs more than other types of insurance, but gives you the most protection. Some car finance loans require comprehensive car insurance as a condition of the loan.

RAC Insurance Pty Limited issues these products. Check the PDS to see if the policy is right for you.

This information is designed to provide helpful general guidance on issues relevant to this topic. It should not be relied on as legal advice. It does not cover everything that may be relevant to you and does not take into account your particular circumstances. You must ensure that you seek appropriate professional advice in relation to this topic as well as to the currency, accuracy and relevance of this material for you.