Receive affordable car insurance for liability costs with third party fire and theft cover
Third party fire and theft car insurance protects you from third party liability costs (damage your vehicle does to other cars and property) as well as fire and theft damage to your vehicle.
This makes it a great alternative to comprehensive insurance for older or less valuable vehicles, and a safe alternative to third party property insurance for people who depend on their car and can’t afford to replace it if it’s stolen.
It offers a balanced approach that falls between third party property car insurance and comprehensive car insurance.
This article looks at what is and isn’t included in such cover to help you decide whether it’s the right insurance for your car.
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Third Party Fire & Theft covers fire, theft and your liability for loss or damage to other people’s property. A typical policy includes the following benefits:
- Loss or damage. Cover up to the market value of your vehicle for loss or damage caused by fire or theft
- Third party property damage. Covers your liability for loss or damage of third party property, including medical and legal costs, up to a high maximum.
- Crash with at fault driver. Limited cover for repairs to your vehicle, if you can identify the at fault driver.
- Emergency repairs. Reimbursement for emergency repairs to secure your vehicle and make it safe to drive.
- Hire car after theft. The cost of a hire car for up to 21 days until your vehicle is recovered, repaired or written off.
- Storage costs. The cost of storing your vehicle in a holding yard or storage facility after an accident or theft.
- Temporary cover. 14 days temporary cover if you sell your vehicle and buy a replacement.
- Towing. The cost of one tow if your vehicle can’t be driven or is unsafe to drive.
Circumstances third party car insurance does not cover include:Back to top
What’s the difference between third party fire and theft and other car insurance?
Before you compare third party fire and theft car insurance, you should know what makes it different. The following is a snapshot of what each type of car insurance covers:
- Compulsory third party (CTP). This mandatory insurance covers your legal liability for third party death or injuries caused by your vehicle. In most states it is included in your registration costs, except for NSW where it is called a ‘green slip’ and must be obtained separately.
Is car insurance compulsory?
Only compulsory third party (CTP) insurance, also known a green slip, is compulsory. You cannot register a vehicle without it. The other types of insurance are optional, but third party property damage is strongly recommended as a minimum.
- Third party property damage (TPPD). Covers the cost of third party property damage caused by your vehicle.
- Third party fire & theft (TPPD F&T). Covers the cost of replacing or repairing your vehicle when damaged due to fire or theft, plus the cost of third party property damage.
- Comprehensive. Covers the cost of replacing or repairing your vehicle when damaged in any circumstance including fire and theft, plus the cost of third party property damage.
What's the difference between CTP and third party insurance?
CTP covers injuries and death, while third party insurance covers damage and destruction. CTP is for humans and third party insurance is for property.
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How much you pay for car insurance depends on what level of cover you choose. Third Party Property is the cheapest, Third Party Fire & Theft is somewhere in between and Comprehensive is the most expensive.
Other factors that influence how much your premium costs include:
- Your age. Young inexperienced drivers usually pay more
- Your driving history. The number of accidents you have had
- Your address. Whether the vehicle is in a high theft area
- Vehicle parking. Whether your vehicle is kept in a locked garage or on the street
- Security features. Whether your vehicle has an alarm or engine immobiliser
- Size of the vehicle. The number of horsepower and whether the vehicle has any modifications
- Make and model. How much repairs cost and whether a particular model is stolen more often
- Use of vehicle. Whether it is for private or commercial use.
Different insurers factor these things in differently, which is why you get different quotes from different providers when comparing third party fire and theft car insurance.Back to top
The type of insurance you need depends on factors. You should ask yourself:
- How much is my car is worth? Higher value cars cost more to repair and replace, and therefore more to insure.
- How often do I drive? The more frequently you drive, the higher the chance of having an accident and the higher the premiums.
- Where do I park everyday? If you park on the street you should expect higher premiums than if you park in a secure garage.
- How much can I afford to pay? The different types of insurance carry different price tags. If you have a very small budget you may wish to stick with TPPD only. If you want to pay more for better protection, TPPD F&T or comprehensive insurance might be better.
Third party fire and theft insurance is a popular middle ground for getting cost-effective third party liability insurance, while also protecting your vehicle from common risks.
You can reduce the cost of your car insurance premiums by following some key steps. These include:
- Comparing policies online
- Bundling your insurance with one insurer to get discounts
- Adding security to your vehicle
- Increasing your excess to reduce your premium
- Shopping around for the best No Claim Bonus discount
- Restricting use to nominated drivers only
- Buying a vehicle which is cheaper to insure
Neville, His Croaking Corolla and the Dangers of Underinsurance
Neville owned a Corolla. The car was a graduation present. He had owned the car for so long that it was part of the family. It even had a name, Trevor. However, Trevor was pretty beaten up and had a market value of just $5,000. Because the car was old, Neville decided to only get CTP insurance.
A few months later, Neville rear-ended a luxury car. The repair bill was $22,000 and Neville was forced to take out an personal loan and work longer hours in order to pay off the debt.
Q. What’s the difference between comprehensive and third party insurance?
- A. Comprehensive car insurance offers the highest levels of protection against everything. It includes third party cover.
Third party cover protects you from costs incurred by damaging someone else’s vehicle or property. Third party property damage (TPPD) does only this, while third party fire and theft (TPPD F&T) does this while covering your car from fire and theft damage
Q. How much is third party car insurance?
- A. Compulsory third party car insurance alone is inexpensive, third party property damage costs more but is still cheap, while third party fire and theft is a bit pricier still. Comprehensive car insurance, which includes third party, is the most expensive option.
Q: What are the benefits of buying car insurance online?
- A: It’s faster and more convenient, with 24/7 access and no forms to sign. It can also be cheaper, with a greater choice of policies to compare.
Q: Why is my car insurance more expensive than my friend’s?
- A: Factors affecting cost include age, make and model of vehicle, where it is housed, who drives it and how many claims you have made in the past.
Q: What’s the difference between agreed and market value?
- A: Market value is the cost to replace your vehicle with one of the same make, model, age and condition. Agreed value is the amount the insurer agrees to insure your vehicle for.
Q: What is a No Claim Bonus and how does it affect my premiums?
- A: It is a discount on your premium, based on your driving experience and claims record. The more claim-free years, the greater the discount, until you reach the maximum Rating 1.
Q: Will I lose my No Claim Bonus if I have an accident?
- A: Not if the other driver is at fault. Otherwise, it may be reduced at renewal, if you don’t have No Claim Bonus protection.