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Types of insurance

Different types of motor vehicle insurance include Compulsory Third Party, Third Party Property and comprehensive.

Compulsory third party

This is compulsory for all vehicles registered in Australia and covers injuries caused to another person while driving. Rates vary by location and type of vehicle. In Victoria, the Transport Accident Commission administers Compulsory Third Party insurance:

Third party property

This covers damage caused to another car and usually limited cover for damage caused to your car by an uninsured driver.

Third party property, fire and theft

As well as the Third Party Property component as described above, Third Party Property, Fire and Theft insurance covers a vehicle for damage caused by fire or if it is stolen.


This is the highest level of protection available and it covers the cost of repairing or replacing a vehicle after an accident even if the driver is at fault as well as damage caused by natural events e.g. flood or hail, malicious damage, vandalism, fire and theft. Comprehensive insurance should be purchased for all fleet vehicles.

Fleet and commercial insurance packages

Many insurers offer commercial motor vehicle insurance packages e.g. RACV offers a fleet motor vehicle insurance policy for businesses with six or more vehicles. It is worth investigating the benefits and savings offered by such insurance packages and investigating any discounts offered by insurers to non-profits. The current Victorian Government vehicle insurer is Lumley General Insurance Ltd.