Do you need comprehensive car insurance in Australia, it is not legally mandatory like CTP which is mandatory for registration, but it is strongly recommended and effectively needed if your car is worth over $10K, financed, new or you cannot afford to replace it. Legally you need Compulsory Third Party CTP for personal injury to others, included in rego in most states. For property damage, you need at least Third Party Property Damage insurance costing $300 to $600 per year, which covers damage you cause to other cars and property up to $20M, but not your own car. Comprehensive insurance covers damage to your own car plus damage to others, plus theft, fire, vandalism, hail and flood, costing $800 to $1,500 per year. If your car is worth over $10K, comprehensive is needed because at-fault accident could cost $15K to repair your car plus $10K for other car, without comprehensive you pay $15K yourself. If you have car loan, lender requires comprehensive as condition of loan. If you have new car, comprehensive includes new car replacement within 2 years if written off. If you park on street or in high crime area, comprehensive covers theft, with 50,000 cars stolen per year. If you can afford to lose car value without financial hardship, you may only need Third Party Property. For most drivers, comprehensive is needed for financial protection, especially with high repair costs and luxury cars on road that could cost $50K+ if you hit them.
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