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Do I need comprehensive car insurance?

Sheen Resources
Insurance
James Black
June 30, 2025
June 30, 2025
3.5 minute read

If you've got a car and want to look after it, chances are you've considered comprehensive car insurance. Taking out a comprehensive policy provides cover for collisions, theft, and vandalism. It also insures you against damage to other drivers’ vehicles and property, as well as weather events, including falling branches and severe hail.

It’s essentially the highest level of financial protection available on the road, covering many mishaps and misfortunes.

However, it’s not for everyone. The cost of comprehensive car insurance varies based on several factors, including:

  • The type of car you drive
  • Your age
  • Your driving record
  • Your past claim history

In this article, we’ll explore the key factors that influence policy costs and help you decide whether comprehensive cover fits your needs.

At Sheen Panel Service, our knowledge of car insurance is second only to our expertise in smash repairs. Whether you're navigating the claims process or weighing up your coverage options, we're here to help take the stress out of it.

Comparing car insurance types

Insurance Type What it Covers What it Doesn’t Cover Who It’s Best For
Compulsory Third Party (CTP) (aka Green Slip) Covers injuries or death caused to other people in an accident you cause. Damage to your own vehicle or other vehicles/property. Everyone — it's legally required to register a car in Australia.
Third Party Property Covers damage you cause to other people’s vehicles or property. Damage to your own car, even if you're at fault. Drivers with older or lower-value vehicles.
Third Party Fire & Theft Covers damage you cause to others' property + your own car if it's stolen or burns. Damage to your car if you’re at fault in a collision. Budget-conscious drivers wanting extra protection beyond basics.
Comprehensive Covers your car and others’ — including theft, weather, vandalism, and collisions. Usually won’t cover wear and tear, unlisted drivers, or mechanical failures.* Anyone who wants full coverage, especially new or high-value cars.

Factors to consider for comprehensive car insurance

Are you a younger driver?

Younger drivers typically pay more for comprehensive car insurance and are statistically more likely to be involved in road accidents. According to IAG data, drivers aged 18 to 25 made more insurance claims than any other age group in 2023.

While paying a higher premium might feel like a sting, it’s often worth ensuring you’re protected, especially if you rely on your vehicle for work, study or travel. That said, assessing how often you drive and whether comprehensive cover suits your situation is important. You might also explore ways to reduce costs, such as increasing your excess or bundling policies.

Do you live in a high-risk location?

Your location plays a major role in determining your insurance premium. If you live in a high-risk area, such as an inner-city suburb with high traffic or theft rates, you may pay significantly more for comprehensive cover than someone in a quieter residential area.

Insurers also consider where your car is parked overnight. A locked garage or off-street carport usually attracts a lower premium than an unsecured street spot.

Before buying a policy, check how your postcode affects your premium, and make sure the cover you’re paying for justifies the cost.

Do you drive a new, used, or specialty car?

The type and value of your vehicle have a major impact on your comprehensive car insurance premium.

If you drive a low-value or older car — often described as a “lemon” — the annual premium may not be worth it, especially if repairs or write-off payments won’t exceed the cost of the policy. On the other hand, if you own a new, high-powered, modified, or vintage vehicle, the higher premiums are often justified. In the event of a write-off or accident, comprehensive insurance ensures your car (and your investment) is protected.

Other considerations

While comprehensive car insurance will provide financial protection for your car in the event of collisions, accidental damage, adverse weather, theft, vandalism and third-party property damage, it is meant to save you money.

Many comprehensive car insurance policies also offer the option of either a preferred repairer or a choice of repairer, which dictates where you can get your car fixed following a collision.

Regarding your policy, always read the Product Disclosure Statement from top to bottom to ensure you choose the right type of cover for your car and financial situation. Talk to an insurance policy representative or your trusted smash repairer to determine if comprehensive car insurance is right for you.

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Here to help with repairs and insurance clarity

Still unsure whether comprehensive car insurance is the right fit for you? Or need help navigating a claim after an accident?

At Sheen Panel Service, our expert team understands insurance processes, high-quality smash repairs, and panel beating, so you get the support you need from start to finish. We’ll help you understand your repair options, work with all major insurers, and get you back on the road sooner.

Whether you have comprehensive, third-party, or you're still deciding on the right cover, give us a call and chat with a Sheen expert today.

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