Compare third party car insurance

What does third party property damage car insurance cover?

Third party property car insurance

Third party property car insurance covers you for damage to other people's property – for example someone else's car, home or shop. It covers only this and nothing else, up to a certain limit (commonly $20 million). This type of policy adds an additional layer of protection over the bare minimum compulsory third party insurance, and prevents you from having to be out of pocket for potentially enormous bills if you hit something expensive.

Third party, fire and theft car insurance

This is a step up from third party property insurance. In addition to covering you for costs if you damage someone else's property, it can pay to repair or replace your car if it's damaged by fire or stolen. However, it still doesn't cover you for damage done to your own car – only comprehensive car insurance covers you for this.

Third party property damage insurance costs

These quotes are accurate as of November 2024.

• How we got these costs

  These quotes were collected using a NSW based address for a 30 year old male driver with a Mazda 3 hatchback. This should be used as a guide only as your own quote will differ based on your personal circumstances.

How to find the best third party coverage for you

1. Compare quotes

Most third party car insurance policies are very similar so price is an important factor. If you think you're paying too much, compare car insurance policies to find a better deal.

2. Choose a higher excess

Your insurer will offer you a lower premium in return.

3. Restrict drivers

You can get a cheaper car insurance policy by restricting your policy to drivers over a certain age.

4. Uninsured motorist damage

Some third party policies cover damage to your own car caused by an uninsured driver. The cap is usually $5,000 but will vary between insurers.

5. Discounts

Sign-up discounts can be a good way to pay less. Just make sure the policy is still the right fit for you.

Is third party car insurance worth it?

Could be good if you:

• Have a low-value car. For example, if it's worth under $10,000. Sometimes it is not economically viable to insure for comprehensive, especially for lower value cars, or drivers with a higher excess (usually younger drivers).
• It's all you can afford right now. Our research shows third party is more than half the price of a comprehensive policy.
• Want more than the bare minimum (CTP) which only covers injuries to people. "I like knowing I'm covered for the costs of their repairs" says finance specialist Nicole Pedersen-McKinnon, "Even if I collide with a Maserati".

Might not be good if you:

• Own an expensive car. You could be thousands out of pocket if it was damaged.
• Rely on your car. Could you afford to replace it if was written off?
• Live in a high-risk area, e.g theft or weather events – in which case, consider third party fire & theft or comprehensive insurance instead.

"I had a third party property damage policy on my old car. It was a pretty run-down vehicle, plus I was always working from home and barely used it or left it unattended, so a comprehensive policy just wouldn't have been worth the money. A basic third party policy to protect me from the costs associated with damage to other people's property was all I needed at the time and cutting it right back was a good way to save money."

Aaron McAllister

Publisher

Frequently asked questions

• What’s the cheapest third party car insurance?

  According to our research, Virgin offer some of the cheapest third party property damage car insurance. Remember, our research is based off a fictional profile and what's cheapest for you may differ.

• What’s the best third party car insurance?

  Our research shows that Budget Direct's third party property damage policy is one of the best value policies. This is because it is reasonably priced and can cover more than some other third party policies. However, keep in mind that what's best for you will depend on your personal circumstances. Always read the PDS and get a range of quotes.

• What is not covered in third party property car insurance?

  You will not be covered for damage to your own vehicle, only comprehensive policies cover this. You will also not be covered for damage by fire or theft, unless you have third party fire and theft insurance.

• Does third party property damage policy cover windscreen damage?

  Usually not. Most third party car insurance policies do not cover windscreen damage. This is usually clearly mentioned as an exclusion.

• What impacts the price you pay?

  When calculating your third party property damage insurance premiums, insurers consider questions like:

  • How old are the people driving your car? Younger drivers are more inexperienced and also feature heavily in Australian road crash statistics, which means they cost more to insure.
  • Are you a good driver? Drivers with a long, blemish-free driving record will obviously cost less to insure than those who have made claims in the past or who have multiple traffic infringements.
  • Where do you keep your car at night? Areas with high theft and accident risks will generally result in higher insurance premiums for car owners.
  • What type of car do you drive? Inexpensive, low powered cars are typically cheaper to cover than high powered, expensive vehicles. Any modifications and accessories fitted to your vehicle will also be taken into account.
  • How much do you use your car? If your vehicle is used for business purposes, or more frequently than most, you may have to pay a higher premium. Alternatively, if you don't drive too often you can opt for a Pay As You Drive policy.

• Will my third party insurance cover me when driving other cars?

  No. Third party insurance is for your vehicle. Your car is insured to be driven by certain people as described in the insurance policy. You are not automatically covered by your usual third party insurance when driving other vehicles.

• Does third party car insurance cover accidents?

  If you hold third party property damage car insurance, then any car or property you damage in an accident is covered, your own vehicle is not.

• Is third party property damage the same thing as compulsory third party?

  No but it's easy to get them confused. Compulsory third party is mandatory in Australia. It protects you from legal and medical costs if you injure or kill someone in a car accident.

  Third party property damage, on the other hand, covers other people's property if you damage it with your car and are at fault.

• What does excess mean?

  The excess is the amount you're required to contribute towards the cost of your claim. As an example, if your excess is $250 and your claim is for $2,000, you will pay the first $250 of your claim and your insurer will cover the remaining $1,750. Insurers will charge a basic excess, which is the minimum you'll need to contribute when you make a claim, as well as a voluntary excess (in return for a lower premium) and an age excess (if your policy features a young or inexperienced driver). Depending on your insurance provider and your individual circumstances, other excesses may also apply to your cover.

• What is an uninsured motorist extension?

  An uninsured motorist extension (UME) is an optional extra available with some third party car insurance policies. It covers damage to your vehicle up to set limits (typically around $3,000–$5,000) in the event that it's damaged by an uninsured driver, that you were not at fault and that you can provide the uninsured driver's name and address.

• Can I add roadside assistance to a third party policy?

  This will depend on the provider. In many cases, roadside assistance is only an optional extra for comprehensive policies. However, it's worth noting that even if you can't add it as an option to your policy, you can just purchase a stand alone roadside assistance policy.

• Can I add extra cover to a third party policy?

  It depends what you're looking to add on. Windscreen cover can typically only be added to comprehensive policies but other features, like roadside assitance, can be added on or purchased seperately to your third party property damage car insurance policy.

• What does 3rd party car insurance cover?

  Third party car insurance only covers damage you do to other people's property. Your own vehicle is not protected against damages it incurs.

Written by

Gary Ross Hunter

Editor, Insurance

Gary Ross Hunter was an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

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