Everything you need to know about what is covered by car insurance

Sheen Panel Service on 14 March 2019

Car insurance offers important protection for everyone on the road. Some policies just protect the individual, while others will also protect the property of the individual and the property of others.

What does car insurance cover?

It is vital that you understand exactly what is covered by car insurance and is not. Knowing these details will help you make the right decision following an incident on the road.

 Injury and deathCollisionsTheftFireWeatherVandalismDamage to your car

Compulsory third party







Third party property 






Third party property, Fire and Theft




Comprehensive car insurance


Source: Canstar

Has your car been damaged? If you aren't sure if the repair bill falls under your coverage, call Sheen Panel Service to see if your insurance can cover it.

Types of insurance

In Australia, there are four types of car insurance offering buyers different levels of protection. These types of insurance start at the basic essentials and work up to the most expensive.

  1. Compulsory third party (CTP): This is mandatory insurance required by every driver in Australia. It protects you against claims if you injure or kill another person while driving.

  2. Third Party Property (TPP): This is optional insurance that covers damage to another person’s car or property. TPP only covers the property of the other driver, not the property of the policy holder.

  3. Third Party, Fire and Theft (TPFT): This level of optional insurance covers damage to a third party, as well as protection for your own vehicle if is affected by fire or theft.

  4. Comprehensive Car Insurance (CCI): This premium level of insurance offers all the protection of the previous levels, with the added benefit of covering damage to your own car.

Incidents covered by insurance

signing car insurance contract

Injury and death

Unfortunately, serious accidents are all too common. Australia’s road toll is on the decline, but well over 1,000 people still die on our roads each year.

  • CTP insurance protects from the financial costs of injuries or death in a car accident

Rear endings and other collisions

Colliding with another vehicle can be jarring in many ways - not only from the shock of the initial impact, but also having to face the damage to the vehicles involved.

  • If you rear end another vehicle on the road, you may be at fault for the incident

  • T-bones, sideswipes and other collisions mean costly repairs for those at fault

Sheen Panel Service works with drivers and insurers after road incidents. If you would like to know if our services are covered by your insurance, contact us today.

Coverage level required: Third party property


Car theft is still a very common crime in Australia. Although modern technology has made it much harder to steal a car, thieves are now focused on stealing keys and returning for the vehicle.

  • 50% of all stolen cars are taken from the home

  • 25% of cars are stolen from the street outside the home

Theft insurance will protect your car for a higher premium than basic cover.

Coverage level required: Third party property, Fire and Theft


Small fires, whether from an accident or electrical fault, can completely destroy a vehicle, rendering it unable to be driven.

  • Heat, combustion and flammable liquids mean that car fires are aggressive and dangerous

  • Unfortunately, arson is often a final consequence of theft

If you are worried about your car being destroyed, or live in an area that is prone to bushfires, you may want to consider covering for fire damage.

Coverage level required: Third party property, Fire and Theft


As a driver, you have probably encountered a spot of bad weather on the road. When wild weather becomes extreme, it can lead to significant property damage.

  • Hail can cause enough damage to write a car off

  • Rain and flooding can easily wash away vehicles

  • Lightning can destroy internal circuitry

  • Wind can displace tree branches and other debris

Coverage level required: Comprehensive


Wilful damage to you property can be both frustrating and costly. You can't keep your eye on your car all the time, so you may want to purchase insurance that covers vandalism.

  • Broken windows, minor dings and other superficial damages may be an easy fix

  • Heavily damage to panels, paint and electronics will cost a lot more

Coverage level required: Comprehensive

Damage to your car

If you're involved in an incident on the road, there's always a chance that your vehicle might come off second best. You might be facing a significant repair bill if you are not insured.

  • Comprehensive car insurance protects you from having to pay for damages to your car.

  • You pay the premium, and the insurer will pay the remainder of the repair bill.

Coverage level required: Comprehensive

What insurance doesn't cover

Depending on the conditions of your policy, your insurer won't cover damages incurred in incidents where:

  • Damages were caused by proven distracted or negligent driving

  • Damages were caused while under the influence of drugs or alcohol

  • The driver has a suspended or expired license

  • The vehicle was previously damaged or not roadworthy

  • Police have charged the claimant with an offence related to the incident

Have you been involved in an incident that has damage your vehicle? Whatever the damage, it's important you know exactly what your policy covers. Contact Sheen Panel Service for accurate and balanced advice on how you should proceed.