what car insurance covers

In Australia, car insurance comes in layers, like an onion that makes you cry when you reverse into a pole.

CTP (Compulsory Third Party) covers injuries to people involved in a crash you cause; it doesn’t cover damage to cars or property, and it won’t fix your own car.

Third Party Property covers damage you cause to other people’s vehicles and property, while Third Party Fire & Theft adds cover if your car is stolen or catches fire.

Comprehensive covers your car and others’ for accidents, plus theft, vandalism, storms and hail—basically the works, minus miracles.

Extras can include hire car after an accident or theft, windscreen-only claims, roadside assist, choice of repairer, and no-claim discount protection; expect an excess and the usual fine print.

Policies differ by insurer and state, so always read the Product Disclosure Statement before you hand over your hard-earned.