Whether you’re looking to insure a brand new family SUV, a work ute or a reliable runabout that’s seen better days, you might be asking yourself, is it worth getting comprehensive car insurance?
There are around 18 million motor-related insurance policies across Australia,1 so deciding which level of cover to take out for your car – outside of the necessary Compulsory Third Party (CTP) insurance – is a decision a huge number of drivers face every year.
Despite costing more than optional third party car insurance cover, comprehensive car insurance is the more popular choice in Australia,2 with Youi’s research showing that 77% of drivers have this type of insurance for their car.
But that doesn’t automatically mean it’s the right choice for every vehicle and car owner.2
This guide breaks down what Comprehensive car insurance typically includes, the circumstances when it could make sense to have it, when it might not be the most practical option, and some key questions to consider that can help you decide if comprehensive car insurance is worth investing in for your situation.
What does comprehensive car insurance cover?
If you have an accident, comprehensive car insurance can cover repairs to your car or to other people’s, even if the accident is your fault.3
In comparison, third party car insurance policies only cover damage to other people’s cars in accidents that are your fault,3 while CTP insurance protects you from being held financially responsible if you injure or kill someone in a car accident.4
But comprehensive car insurance covers much more than accidental damage.
Picture these scenarios:
- A severe hailstorm hits while you’re at work – by the time you reach your car, the bonnet and roof are covered in dents.
- You return from shopping to find your car’s been keyed along the entire passenger side in the car park.
- You get rear-ended by a distracted driver and need a hire car to get to work while your vehicle is being repaired.
- Your car is left undriveable after an at fault accident and needs towing from the scene.
- You wake to find your car’s been stolen from your driveway overnight.
These situations happen to Australian drivers every day – and they’re all potentially costly.
Youi’s Comprehensive car insurance provides cover for a wide range of unexpected events, such as theft, intentional damage and damage from severe weather events including storms, hail and floods, which could help you repair or replace your car without the financial stress.5
It also covers towing costs if your car’s unsafe to drive after an insured event and a hire car after not at fault accidents.5
Plus, Youi’s Roadside Assist is automatically included with Comprehensive car insurance and can come to your aid in the event of a flat battery, flat tyre, stalled engine and more.5
When comprehensive car insurance can really be worth it
To work out if comprehensive car insurance might be right for you and your car, it can help to ask yourself a few key questions.
Could you afford to repair your car?
Data from the Insurance Council of Australia (ICA) shows repair costs for cars climbed more than 25% between 2022 and 2024.6 So if your car gets damaged and you don’t have the appropriate level of insurance to cover it, getting it repaired is not only likely to be an unexpected expense, it could cost significantly more than you bargained for.
Could you afford to replace your car?
The ICA research also found that new car prices rose by up to 39% between 2019 and 2024, while used car prices rose by around 32%.6
So, without comprehensive car insurance, could you afford to buy another car – or survive without one – if yours was damaged beyond repair in a car accident or a severe weather event? This may be particularly important to consider if you need your car for work or family commitments.7
Cars being declared write-offs isn’t an uncommon scenario either – total losses account for about 25% of car insurance claims costs in Australia.6 If you have comprehensive car insurance, a payout from your policy could significantly contribute to organising a replacement vehicle.7
Do you still owe money on your car?
Some banks and car-loan finance providers will require your car to have comprehensive cover if you’re still paying off your loan. This protects the lender’s interests – if the car securing your loan can be repaired or replaced if it’s damaged, the lender is less likely to be left out of pocket if you default on payments.7
But even if it’s not a requirement stipulated by your lender, comprehensive insurance could still be worth considering if you have finance owing on your car. For example, if you have an accident and your car gets written off, you could end up left with the debt – but no car to show for it – if you don’t have comprehensive insurance.8
When you might consider a third party policy instead
Comprehensive car insurance offers a high level of cover, but in some circumstances, paying the higher premiums that typically come with this level of cover may not make sense for every car owner.7
For example, it may not be worth having comprehensive insurance on an old car when you consider that a few years of comprehensive insurance premiums on a model with plenty of kilometres on the odometer might cost more than the vehicle is actually worth.7
If you have an older car, consumer advocacy group CHOICE says it may be worth considering whether a Third Party Fire & Theft or a Third Party Property Only car insurance policy might suit you better.2
What do car insurance statistics say about comprehensive car insurance?
Car insurance stats from Youi’s 2025 Under the Hood Report show that compared to drivers with lower levels of cover, those with comprehensive car insurance were the most likely to have made between two to five insurance claims. Here’s what else our survey revealed:
- 78% of people with comprehensive car insurance say they’ve taken it out for peace of mind. This compares to around 70% of drivers with third party cover.9
- 89% of Australia’s oldest drivers (aged 59+) have comprehensive car insurance.
- More than 50% of Gen Z drivers – people aged under 28 – have comprehensive car insurance.
So, is comprehensive car insurance worth it? As this guide has shown, the answer can hinge on a number of different factors, but hopefully you now feel more confident about what comprehensive insurance covers and how to work out whether it’s the right choice for you and your car.
If you are weighing up your car insurance options and would like to discuss whether Youi has a policy that might suit you, we’re here to help. Start a quote online or call us on 13 9684 to find car insurance that’s a bit more you-shaped.
Note: Information in this article is relevant as of December 2025 and by its nature will change over time. Check relevant Government websites for updates if this information is important to you.
1 Source: Insurance Council of Australia – Australia’s insurance industry snapshot 2025
2 Source: CHOICE – How to find the best car insurance policy, April 2022
3 Source: Insurance Council of Australia – Car insurance, September 2025
4 Source: Motor Accident Insurance Commission – About CTP insurance, November 2024
5 Exclusions, limits and additional fees may apply. For full details, see the Car Insurance PDS.
6 Source: Insurance Council of Australia – Motor Insurance Policy Paper: A Roadmap for Reducing Rising Premiums, March 2025
7 Source: Canstar – Is comprehensive car insurance worth it?, May 2025
8 Source: Drive – Is third-party car insurance worth it? Here’s the honest truth, November 2024
9 Includes drivers with Third Party Property Only or Third Party Fire and Theft cover.
