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
Provider | ~Annual cost |
---|---|
Budget Direct | $461.72 |
Bingle | $459.69 |
Allianz | $516.56 |
AAMI | $531.99 |
NRMA | $609.86 |
QBE | $855.27 |
These quotes are accurate as of September 2024.
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."
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Ask a question
I have a car with hail damage only.
Can I still get third-party insurance?
Hi Tina,
Provided the car is still safe to drive, it should be possible to get third party car insurance. Good luck!
I am 76, male, car worth less than $10,000, drive less than 5,000 km annually. What’s best, cheapest insurance for me, for damage to other cars only?
Hi Bjorn,
What’s best or cheapest will depend on your personal circumstances and driver profile so I couldn’t recommend specific providers to you. Instead, I can share a few tips to help you find a cheaper policy:
– Get quotes from at least 3-5 providers so you can see the difference in pricing on offer
– Look for sign up discounts
– Consider adjusting your excess; a higher excess means a lower premium. Just be sure you can still afford the excess in the event you’re required to pay it
– Restrict drivers under 25 if you’re sure no one under that age will drive the car. This can help bring the cost down as insurers typically view younger drivers as more risky and can up the premium if they’re not excluded
Remember, every policy varies so to ensure it covers what you need, read the product disclosure statement on the provider’s website.
I hope this helps!
I have a 2004 Holden Berlina which has not been registerred nor driven for 5 years , it is now for sale, can I get CTP insurance for less than 12 months , even 6 month to match the proposed registration term.
James
Hi James, CTP insurance can typically be bought for either 6 or 12 months but it’s best to check with your insurer as payment terms may vary. This page may be helpful for any other questions: https://www.finder.com.au/car-insurance/ctp-insurance
Hello, I have an at fault claim from nearly 4 years ago, a driving under the influence of drugs charge for which I lost my licence for 6 months approx 3 years ago plus I have a criminal record for drug charges… Can you help me weed through the options, if any, available to me to take out a policy?
Hi Ryan,
Check out this article for more info that might be useful for your situation:
https://www.finder.com.au/car-insurance/car-insurance-criminal-record
I’m interested in looking at car insurance which allows for some rideshare work. Can you provide a list?
Hi Dan,
Thanks for the message. You can head to our guide to rideshare insurance here. More than a dozen providers offer some coverage for rideshare drivers.
Best,
James