Comprehensive car insurance: meaning, coverage, benefits and cost explained

What is comprehensive car insurance?

Comprehensive car insurance is a type of motor vehicle insurance that covers damage to your own car, as well as damage you cause to other people's vehicles or property.

Unlike compulsory third party (CTP) insurance, which only helps cover injuries to people, comprehensive cover helps protect your vehicle against a wide range of risks, including accidents, theft, fire, vandalism and weather-related damage.

In practical terms, comprehensive car insurance combines third party property damage cover with protection for your own car, making it the most inclusive car insurance option available.

What does comprehensive car insurance cover?

Comprehensive car insurance in Australia generally includes the following (subject to any exclusions and limits).

Damage to your car

Comprehensive insurance covers the cost of repairing or replacing your car if it's damaged in an accident, regardless of who is at fault. This includes collisions with other vehicles, objects such as poles or fences, and single-vehicle accidents.

Damage you cause to other vehicles or property

If you accidentally damage someone else's car or property, comprehensive car insurance covers the cost of repairs or replacement. This is the same core protection offered by third party property damage insurance, but included as part of a broader policy.

Theft and attempted theft

If your car is stolen, comprehensive car insurance can cover the cost of replacing it, up to the agreed or market value. Damage caused by attempted theft is also typically covered.

Fire damage

Damage caused by fire, including bushfires and accidental fires, is generally covered under comprehensive policies.

Weather and natural events

Comprehensive car insurance often covers damage caused by severe weather events such as hailstorms, floods, storms, lightning, and falling trees or branches. Given Australia's climate, this is a significant benefit for many drivers.

Vandalism and malicious damage

If your car is deliberately damaged, such as through vandalism or graffiti, comprehensive insurance usually covers the cost of repairs.

Animal collisions

Collisions with animals, including kangaroos and livestock, are commonly covered under comprehensive car insurance.

What does RACV comprehensive car insurance cover?

RACV Comprehensive Car Insurance provides broad, flexible cover, while RACV Complete Care Car Insurance has extra inclusions with premium protection. For full details and to compare policies, always refer to the official Product Disclosure Statement on the RACV website.

RACV Comprehensive Car Insurance

RACV Comprehensive Car Insurance is a popular car insurance policy, with broad cover for your car and others' - including accidents, theft, fire, vandalism, and natural disasters. Key features include:

• Accidental damage cover - helps protect your car regardless of who is at fault.
• Theft and fire - covers loss or damage from theft, attempted theft, or fire.
• Liability cover - up to $20 million for claims against you for loss or damage to someone else's vehicle or property.
• New-for-new car replacement- if your car is written off within the first two years of registration, it may be replaced with a new one of the same make and model.*
• Hire car after theft or not-at-fault accident - up to $60 per day for 21 days after a theft or attempted theft, with the option to add cover for other incidents. No limit applies after a not-at-fault collision.
• Emergency accommodation and transport - up to $1,000 if you're more than 100km from home in Australia and your car is undriveable after an insured event.
• Personal items cover - up to $500 for personal items stolen with your car or damaged in an incident. Exclusions apply.
• Choice of excess - tailor your premium by choosing a higher or lower excess.
• Any driver cover - any licensed driver who meets policy conditions is covered, including learners.**
• Optional extras - add-ons like excess-free windscreen cover, hire car after any incident, and your choice of repairer.

RACV Complete Care Car Insurance

RACV Complete Care Car Insurance is the highest level of cover offered by RACV Insurance, building on the inclusions of Comprehensive Insurance, with extra benefits and premium features. It's designed for those who want premium protection with agreed value, extensive benefits and support. In addition to all the benefits of Comprehensive Car Insurance, Complete Care offers:

• Hire car for any insured incident- not just theft or not-at-fault accidents: hire car cover applies for any insured incident, up to $100 per day until your car is fixed or your claim is settled. No limit applies after a not-at-fault collision.
• No excess for windscreen, window glass, or sunroof damage - you won't pay any excess if only your car's glass is damaged in the event of an insured incident.
• Your choice of repairer - choose your own licensed repairer or use RACV's partner network.
• Emergency transport and accommodation - up to $1,500 if you're more than 100km from home in Australia and your car is undriveable after an insured event.
• Personal items cover - up to $1,000 for personal items stolen or damaged in an incident. Exclusions apply.
• Vehicle pickup and return - covers the cost of getting your vehicle to and from a repairer after an insured accident.
• New-for-new car replacement - for cars up to three years old, if considered a total loss.*
• Award-winning cover - RACV Complete Care has recently won the 2025 Mozo Exceptional Quality Car Insurance award.^
• Premium support: Access to a local, dedicated support team from 7am–11pm every day.

Which RACV Car Insurance policy Is right for you?

• Comprehensive Car Insurance is ideal for drivers seeking robust protection and flexibility, with the option to tailor cover to suit their budget.
• Complete Care Car Insurance is best for those who want the highest level of protection and premium inclusions - especially if you value features like unlimited hire car cover, higher personal items protection, and no excess for glass claims.

Both policies come with RACV membership, unlocking loyalty discounts, multi-policy savings, and exclusive offers.

Key differences at a glance

What isn't covered by comprehensive car insurance?

Despite its broad protection, comprehensive car insurance does not cover everything. Common exclusions include:

• general wear and tear, mechanical breakdowns or rust
• damage caused by illegal activities, such as driving under the influence
• unapproved modifications not disclosed to the insurer
• driving an unroadworthy or unregistered vehicle
• using the car outside the policy terms, such as commercial use without disclosure.

Always read the Product Disclosure Statement (PDS) carefully to understand exactly what is and is not covered.

Comprehensive car insurance vs other types of car insurance

Comprehensive vs third party property damage insurance

Third party property damage insurance only covers damage you cause to other people's vehicles or property. It doesn't cover damage to your own car. Comprehensive insurance includes this protection and also covers your own vehicle.

Comprehensive vs third party fire and theft insurance

Third party fire and theft insurance covers damage you cause to others, plus limited cover if your car is stolen or damaged by fire. However, it does not cover accident damage to your own car. Comprehensive insurance generally provides broader protection.

Benefits of comprehensive car insurance

Greater peace of mind

One of the biggest benefits of comprehensive car insurance is peace of mind. Comprehensive cover helps protect you financially if your car is stolen, vandalised, or damaged in an accident.

Financial protection for high-value vehicles

If you drive a new or expensive car, comprehensive insurance helps protect your investment. Repair or replacement costs can be significant, and comprehensive cover can reduce out-of-pocket expenses.

Flexibility and customisation

Many comprehensive policies allow you to choose between agreed value and market value, adjust your excess, and add optional benefits to suit your needs.

Coverage regardless of fault

Unlike some other insurance types, comprehensive car insurance generally covers damage to your car even if you are at fault in an accident.

How much does comprehensive car insurance cost in Australia?

Comprehensive car insurance is typically more expensive than third party options because it offers a higher level of cover. Refer to the Premium, Excess and Discounts Guide for the factors that influence pricing.

Agreed value vs market value explained

When taking out comprehensive car insurance, you will usually choose between agreed value and market value. Each option has advantages, and the right choice depends on your preferences and financial priorities.

Agreed value is a fixed amount agreed upon at the start of the policy, representing what your insurer will pay if your car is written off.

Market value reflects the car's value at the time of the claim, based on age, condition and market conditions.

Is comprehensive car insurance worth it?

Comprehensive car insurance is generally worth considering if:

• you want cover for your own vehicle in addition to damage caused to others.
• your car is new, high-value or still under finance
• you rely on your vehicle daily
• you want protection against theft, weather damage and accidents
• you would struggle to pay for major repairs or replacement yourself.

For older, low-value vehicles, the cost of comprehensive insurance may outweigh the benefits, and a lower level of cover may be more appropriate.

How to choose the right comprehensive car insurance policy

When comparing comprehensive car insurance policies, consider:

• the level of cover and key exclusions
• whether the policy offers agreed or market value
• excess options and premium flexibility
• optional extras that suit your driving habits
• claims process and customer support.

Choosing the right policy involves balancing cost, coverage and peace of mind.