Protect your vehicle against fire and theft, and get protection if you damage someone else’s vehicle or property.
Third party fire and theft car insurance is designed to cover you when your vehicle is stolen or damaged by fire, or if you’re responsible for an accident that damages someone else’s vehicle or property. This mid-level car insurance option provides cover against the most common risks you face when on or off the road, but is designed to be more affordable than comprehensive car insurance.
If you’re looking for third party fire and theft cover for your car, read on to find out how to compare policies and choose the right option for you.
Ready to compare third party fire and theft policies?
What does third party fire and theft car insurance cover?
Third party fire and theft policies cover fire, theft and your liability for loss or damage to other people’s property. A typical policy includes the following benefits:
- Loss or damage due to fire or theft. Cover up to the market value of your vehicle for loss or damage caused by fire or theft.
- Third party property damage. Covers your legal liability for loss or damage to someone else’s vehicle or property.
- No-fault crash with an uninsured motorist. 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 insured event
- Temporary cover. 14 days' temporary cover if you sell your vehicle and buy a replacement.
- Towing. The cost of towing your vehicle after an insured incident if it can’t be driven or is unsafe to drive.
What's the difference between CTP and third party insurance?
CTP stands for compulsory third party insurance and as its name suggests, this type of cover is mandatory for every Australian driver. CTP insurance, sometimes also known as a green slip, covers your legal liability and the medical bills that result when you cause injury or death in an at-fault car accident. This includes injury to or death of other drivers, passengers, pedestrians and cyclists.
CTP is automatically included in your registration fees in most states and territories. However, if you live in NSW, the ACT or Queensland, you have the freedom to choose your own CTP insurance provider.
Meanwhile, third party property damage insurance covers your legal liability when you’re responsible for an accident that damages someone else’s vehicle or property. It is available on all three types of optional car insurance available in Australia:
- Third party property damage car insurance
- Third party fire and theft car insurance
- Comprehensive car insurance
Is this type of car insurance right for me?
With several different types of car insurance available, it can be tricky to work out which type of policy is the best fit for you. To help make your choice easier, check out the comparison table below:
|Cover||CTP insurance||Third party property damage insurance||Third party fire and theft insurance||Comprehensive car insurance|
|Damage to my vehicle in an accident|
|Damage to another person’s vehicle or property|
|Loss or damage to my car due to fire|
|Loss or damage to my car due to theft|
|Loss or damage to my car due to storm, hail and flood|
|Injury or death to someone else as the result of a car accident|
What isn’t covered by third party fire and theft insurance?
Check the list of general exclusions in a third party fire and theft policy PDS to find out when the policy won’t provide any cover. Your claim will not be paid if:
- You were driving under the influence of drugs or alcohol
- Your car breaks down
- You fail to care for your vehicle or take all reasonable steps to prevent loss or damage
- Your car was being used to carry dangerous goods
- It arises due to a deliberate or intentional act by you
- It is for depreciation, wear and tear, rust or gradual deterioration
- It is for pre-existing damage to your vehicle
- It is caused by unauthorised modifications to your vehicle
- You were using your car for hire or reward
- It arises due to an illegal act by you
- Your car was being driven by anyone who is excluded from cover
- It arises due to the lawful seizure of your vehicle
- It is for loss of use of your vehicle
- It is for loss of value of your car due to damage
- Your car was being used for testing or demonstrations
- Your car was participating in motor sports
- Your vehicle was being used while overloaded with goods or passengers
- It is for damage caused by tyre punctures or blowouts
- Your car was being used by an unlicensed driver
- Your car was being driven while in an unsafe or unroadworthy condition
- If you do not remain at the scene of an accident when required by law to do so
- It arises because you use an incorrect type of fuel
What are the benefits of third party fire and theft car insurance?
There are several reasons why you may want to consider this type of cover for your vehicle:
- It covers the most common risks. Car accidents, theft and fire damage are three of the biggest risks all drivers face, and third party fire and theft insurance provides protection against all of them.
- It’s cheaper than comprehensive car insurance. Third party fire and theft insurance is a mid-level policy option that combines a broad range of cover with affordable premiums. Because it doesn’t offer the same level of cover as comprehensive car insurance, it’s a whole lot more affordable.
- It can be a good choice if your car isn’t overly expensive. If your car is a little older and perhaps not as valuable as it used to be, forking out big bucks for comprehensive car insurance may be overkill. However, third party fire and theft cover may offer the right combination of essential cover and cheaper premiums.
- It offers additional benefits. Most third party fire and theft policies also include a range of additional benefits, such as towing and storage costs, a hire car after theft, and cover for damage caused by uninsured motorists.
- It provides peace of mind. Like any form of car insurance, third party fire and theft insurance is all about peace of mind. It gives you the confidence and reassurance you need to hit the road.
How much does third party fire and theft car insurance cost?
That depends on a whole lot of things. When you apply for a third party fire and theft policy you’ll need to answer a whole range of questions about your car and where you live. Your answers to these questions reveal a range of risk factors that can affect the cost of car insurance, such as:
- The car you drive. The more expensive or powerful your vehicle is, the more it will cost to insure. Whether or not it has a security system fitted can also affect premiums.
- Where you live. If your suburb has a high rate of theft, expect to pay more for cover. You can also expect to pay more if your car is kept on the street rather than locked in a garage.
- The insured drivers. The age, gender, experience, driving record and claims history of all drivers will be assessed by the insurer when determining your premiums. Young drivers pay more than older drivers and cover tends to be more expensive for men than women, while safe drivers with a clean record will be cheaper to insure than those with a chequered history.
- Other factors. Is the car used for business or private use? How many kilometres do you drive each year? Has the car been modified at all? Your answers to all of these questions will have a bearing on how much you pay for cover.
Is third party fire and theft cover worth it?
The answer to this question really depends on two factors:
- How much cover you want
- How much cover you can afford
Third party fire and theft insurance is a mid-range cover option. It’s more affordable than comprehensive car insurance but not as cheap as third party property-only cover, while it also sits between the two other policies in terms of the benefits it offers. If this sounds like the type of cover you’re looking for, start comparing third party fire and theft policies today.
How can I save money on car insurance?
Keep the following tips in mind to help you save money on your car insurance premiums:
- Compare policies. It’s quick and easy to compare car insurance quotes online, so get quotes from multiple insurers and see which policy comes out on top.
- Choose the right level of cover. The lower your level of cover, the less you will pay for your policy. With this in mind, consider whether third party property damage only-cover might be a better fit for you than a policy that also covers fire and theft.
- Choose a higher excess. The higher your excess, the cheaper your premium will be.
- Take advantage of discounts. Many insurers offer discounts to people who insure multiple cars, hold multiple policies with the same provider or are long-term customers.
- Restrict cover. Restricting cover to drivers over the age of 25 or 30 only can help you reduce your premiums.
- Secure your vehicle. Vehicles that are kept in a locked garage and that also have their own security and anti-theft devices installed are harder for thieves to steal, which therefore makes them cheaper to insure.
- Buy online. Some insurers offer substantial discounts if you purchase cover online.
What’s the difference between third party property damage insurance and third party fire and theft insurance?
Both policies provide cover for your legal liability when you’re responsible for a car accident that causes damage to someone else’s car or property. However, third party fire and theft insurance also provides cover for loss or damage to your vehicle caused by fire or theft.
Does comprehensive car insurance include cover for fire, theft and third party property damage?
Yes, all of these benefits are included in a comprehensive car insurance policy along with a wide range of other cover features.
Will my third party insurance policy cover me when I’m driving other cars?
No. The insurance is for your vehicle only and will not cover you when you drive other cars.
Does third party fire and theft insurance cover damage to my car in an accident?
No. This type of cover only covers damage to someone else’s vehicle or property in an accident for which you’re responsible. However, many policies will include a limited level of cover when your vehicle is damaged in a no-fault accident with an uninsured motorist.
How can I find the best third party fire and theft insurance?
The only way to find the best third party fire and theft policy for your needs is to shop around. Compare cover features and quotes from a range of insurers to track down the policy that provides the cover you need at the best possible price.
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