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If you’ve been in a car accident in Victoria, the insurance held by you and the other driver can shape what happens next, and how much you’re left paying out of your own pocket.

Comprehensive and third-party insurance cover very different things, and mixing them up is an easy (and expensive) mistake. Here’s a simple breakdown of each option, and where your legal rights fit in once an accident has happened.

Quick Answer

CTP (Compulsory Third Party) is bundled into your Victorian rego and only covers injury, not damage to any vehicle or property.
Third-party property damage covers repairs to the other person’s car or property, not your own.
Comprehensive insurance covers your own car as well as others’, plus fire, theft and storm damage.
Comprehensive premiums have climbed sharply in recent years, though they’re still usually far cheaper than an uninsured repair bill.
None of these policies affects your right to pursue compensation for your own injuries. That’s a separate process, and one where a TAC lawyer can help.

What Is CTP Insurance?

Compulsory Third Party insurance is the one type of cover every registered Victorian vehicle must carry. In Victoria, it’s known as the TAC charge, and it’s included in your registration payment each year rather than purchased separately. The TAC confirms the charge is indexed to inflation every 1 July, and pensioners and eligible apprentices can access discounts.

CTP compensates people injured in a transport accident, including drivers, passengers, pedestrians and cyclists. It pays for reasonable medical treatment, rehabilitation and related support. What it doesn’t do is cover any damage to vehicles or property. For that, you need additional insurance.

Third Party Property Insurance

Third-party property damage insurance steps in where CTP stops. It covers the cost of repairing another person’s car or property if you’re at fault in an accident, but it won’t pay a cent towards fixing your own vehicle. Some insurers offer a “fire and theft” option, which provides limited cover for your own car if it’s stolen or damaged by fire. This is a gap many drivers don’t realise exists until they’re facing a repair bill with no way to claim it back.

Comprehensive Insurance

Comprehensive is the broadest option available. It covers damage to your own car and to other people’s cars or property, even where you caused the accident, and typically extends to theft, vandalism, fire and weather events such as storms and hail. You can usually choose between an agreed value (fixed at the outset) or a market value payout if your car is written off.

Comprehensive cover isn’t cheap, and it’s getting less so. The Insurance Council of Australia reports that average comprehensive premiums rose 42% between 2019 and 2024, driven by higher repair, parts and rental costs. Even so, for most drivers, it remains far more affordable than paying out of pocket for a total loss or a large repair bill.

Higher or Lower Excess?

Your premium is also shaped by the excess you choose, which is the amount you pay upfront before your insurer covers the rest. A higher excess generally means a lower premium, but a higher out-of-pocket cost if something goes wrong. It’s worth weighing this against how much you could comfortably afford after an unexpected accident.

Where Does a TAC Claim Fit In?

None of this insurance affects your entitlement to pursue compensation if you’re injured in a road accident. That’s a separate legal process handled through the TAC, and it applies regardless of who’s at fault or what insurance either driver holds. If you’ve been injured, our TAC lawyers can help you understand what you’re entitled to, from medical costs and income support through to common law compensation for pain and suffering.

Our Expert Legal Advice

For most Victorian drivers, comprehensive insurance offers the strongest financial protection alongside your compulsory TAC charge. But insurance only ever covers the cost of the vehicle. It says nothing about your right to recover compensation for an injury someone else caused.

If you’ve been hurt in a road accident, our car accident lawyers can talk you through your options at no cost, on a no-win, no-fee basis.