car insurance, Geelong, Victoria, Hobart, Tasmania

Clearing the confusion about car insurance

Do you have the right car insurance in place?

As much of a grudge purchase as car insurance can be, not having your car insured properly could effectively bankrupt you.

Allsure Insurance Director Melissa Donaldson exclaimed “I don’t understand why you would be working so hard at building a business, yet leave a huge hole in your risk profile! I cannot comprehend it. A new Merc is super expensive, imagine if you wrote one off, and you didn’t have insurance. We are here to help!”

But what are the types of car insurance and how much does car insurance typically cost? See below for a high level explanation about some common car insurance lingo.

Third party

Third party insurance means in the case of an accident, the other party [person, property] is covered for the damage your vehicle caused. Many take this option if their car isn’t worth much… but keep in mind that you may save money on your on premium, however, you might be out of pocket on car repairs or a total loss. Sometimes it’s less than $200 per year for this cover.

Third party fire and theft

Third party fire and theft covers the above AS WELL as if your car if it catches fire, or if it is stolen. It doesn’t cover your car if it’s damaged in an accident. It could be less then $300 per year for this cover.


Comprehensive car insurance covers all the above, as well as repairs to your vehicle if you are in an accident. You can also add features like a hire car and windscreen. It can be as little as $550 per year for this cover.

Compulsory third party (CTP)

Compulsory third party insurance is MANDATORY, and is designed to cover the cost of personal injury to another party, this is TAC. If they are injured in the car accident, it pays for their medical and rehabilitation.

Want to learn more car insurance lingo? Check out our blog ‘Car insurance – market value versus agreed value‘ by Taz (Thaddeus Treloar).

PS. We haven’t taken your person circumstance into account, just general advice. Yes we’re an insurance broker, with a small, local business, trying to save the world, one insurance policy at a time.

PSS. Prices will change depending on vehicles, state and drivers.

PSSS. Have questions? Talk to someone like us! Call (03) 5278 6808 to get answers or a free quote.