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Third party, fire and theft car insurance
Third party, fire and theft insurance covers you if your vehicle's stolen or damaged by fire. Or, if you're at fault for an accident that damages a person's vehicle or property.
What is third party, fire and theft car insurance?
Third party, fire and theft car insurance covers you for damage to another person's vehicle or property as well as damage to your car by fire or theft. It does not cover damage to your vehicle in the event of an accident; for that, you'll need comprehensive car insurance.
Compare third party, fire and theft car insurance policies
Finder survey: Why do Australians choose third party fire and theft?
Response
I'm worried my car will be stolen
47.54%
It was only slightly more expensive
27.87%
I don't know the difference
19.67%
I live in a bushfire-prone area
19.67%
Source: Finder survey by Pure Profile of 1006 Australians, December 2023
What does third party fire and theft cover?
Third party fire and theft car insurance covers you for damage to another person's vehicle or property, plus damage to your car by fire or theft.
It's a step up from third party car insurance, which only covers damage to another person's vehicle or property.
It doesn't cover damage to your vehicle in the event of an accident; for that, you'll need comprehensive car insurance.
Our editorial pick
If you're looking at third party fire and theft car insurance, chances are you don't want to dish out thousands a year for comprehensive cover but you want a bit more than a basic third party policy. Maybe you're worried about theft, live in a bushfire area; regardless, we can help. Our insurance team collected 199 third party fire and theft quotes from 20 popular car insurers and analysed dozens of features to see who came out on top.
Why you can trust our research
20third party fire and theft policies
199prices gathered
100+hours of research
Great for value: Budget Direct third party fire and theft
Our verdict
Budget Direct was the cheapest third party fire and theft policy on average across all major states, according to our research. In addition to cover for damage to other people's property, fire and theft, it also covers your car for damage caused by an uninsured driver, up to $5,000.
Cheap third party fire and theft policy.
You can reduce costs by restricting drivers.
Hire car following theft - up to $1,000, up to 14 days.
The 15% sign-up discount only applies for the 12 months.
It doesn't generally cover damage to your own car (only if an uninsured driver hits you).
AAMI and Virgin were around the same price in our analysis – marginally more expensive.
Our team got 199 quotes across 20 different third party fire and theft policies. We got quotes in NSW, QLD, VIC and WA. The car model we used for all quotes was a 2007 Mazda 3 Neo BK Series 2 Auto 5DR hatchback.
We selected Budget Direct because it was the cheapest policy on average, it covers your car for damage caused by an uninsured driver, up to $5,000 and it can provide you with a hire car if yours is stolen.
Keep in mind, while our team did extensive research, Budget Direct may not be the best value policy for you. There are lots of things that can impact the price of a policy such as where you live, your driving history, age and gender.
Maximum cover limits Most third party, fire and theft policies have a cap on how much they'll pay you if your car is written off due to a fire or because it's been stolen. This is typically up to $10,000. We researched 14 policies and GIO was the only insurer with a slightly higher $12,000 limit.
How does this type of car insurance compare to others?
There are 4 main types of car insurance available. Here's a summary of what they cover:
Cover
CTP insurance
Third party property damage insurance
Third party, fire and theft insurance
Comprehensive car insurance
Damage to my vehicle in an accident
No
No
No
Yes
Damage to another person's vehicle or property
No
Yes
Yes
Yes
Loss or damage to my car due to fire
No
No
Yes
Yes
Loss or damage to my car due to theft
No
No
Yes
Yes
Loss or damage to my car due to storm, hail and flood
No
No
No
Yes
What are the benefits of third party, fire and theft car insurance?
It covers some common risks. Get protection for car accidents, theft and fire damage – among the biggest risks all drivers face.
It can be cheaper than comprehensive car insurance. This mid-level policy option combines a decent range of cover with competitive premiums. But, it doesn't offer the same level of insurance as comprehensive cover. For example, it won't cover the contents in your car or replacement keys.
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 before getting behind the wheel.
What isn't covered by third party, fire and theft insurance?
There are a few situations where third party, fire and theft insurance won't cover you. The main ones relate to damages to your car.
Natural disasters. You won't be covered for natural disasters including storms, floods, hailstorms, earthquakes or landslides. The one exception is bushfire since it does cover fire of all types.
Accidents you cause. You won't be covered for any damage to your own car if you cause the crash.
Vandalism. You won't be covered for vandalism. However, you will be covered if someone damages your car while attempting to steal it.
Hitting an animal. You won't be covered for hitting an animal, even if there was nothing you could do to avoid it.
How can I find the cheapest third party, fire and theft policy?
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 a higher excess. The higher your excess, the cheaper your premium will be.
Take advantage of discounts. Many insurers offer discounts to new customers. Some sign up discounts are as generous as 15% off.
Restrict cover. Restricting younger drivers can help you reduce your premiums as you're seen as less risky. Remember, this is only a good option if you're certain no younger drivers will drive your car.
Secure your vehicle. Vehicles that are kept in a locked garage are often cheaper to insure as they're seen as less risky.
Who is third party, fire and theft car insurance good for?
A third party, fire and theft policy is good if:
You want protection against damage you cause to other people's cars or property; theft or fire damage to your own vehicle; and cover for legal expenses after an accident.
You're keeping a close eye on your budget. Put simply, it's usually cheaper than comprehensive insurance.
Theft is a worry where you live or work. It's worth considering if you're based in an area that carries a high risk of vehicle thefts.
You drive an inexpensive car. If your vehicle has a low market value, you may decide that mid-range coverage is enough for you.
Third party fire and theft covers a number of road-related risks – and goes quite a bit further than an entry-level policy. It's particularly good if you rely on having a vehicle and you'd otherwise be stuck, say, if your car were stolen. But, keep in mind your cover won't extend to damages to your own car after an at-fault incident. For that, you'll need to upgrade to comprehensive insurance.
You pay nothing. Finder is free to use. And you pay the same as going direct. No markups, no hidden fees.
You save time. We spend 100s of hours researching car insurance so you can sort the gold from the junk faster.
You can trust us. We say it like it is. We aren't owned by an insurer and our opinions are our own.
FAQs
Third party, fire and theft is worth it if you don't need the full cover for your own car, but have a higher risk of experiencing fire damage or theft.
Also, you'll find it more useful than the more basic third party property cover, especially if you:
Don't have secure parking
Commonly travel with your car
Live in a bushfire-prone area
Live or work in a high-crime area
Many policies also cover you for a hire car if your car is stolen, and may even offer emergency transportation and accommodation if it's stolen while you're far from home.
CTP only pays for injuries that you cause to others with your car. It's also called your green slip. Whereas third party, fire and theft also protects you if you damage someone's property like their car, bicycle or fence. It can also provide some limited protection for your own car.
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. But third party, fire and theft insurance provides cover for loss or damage to your vehicle caused by fire or theft; third party property insurance doesn't.
Comprehensive car insurance covers damage to your own vehicle if you're involved in an accident, third party car insurance does not.
No. The insurance is for your vehicle only and will not cover you when you drive other cars.
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.
Yes. Most policies let you accrue a no-claims bonus. But read the policy wording or give an insurer a call if you're in any doubt about what you're covered for.
James Martin was the insurance editor at Finder. He has written on a range of insurance and finance topics for over 7 years. James often shares his insurance expertise as a media spokesperson and has appeared on Prime 7 News, WIN News, Insurance News, 7NEWS and The Guardian. He holds a Tier 1 General Insurance (General Advice) certification and a Tier 1 Generic Knowledge certification, both of which meet the requirements of ASIC Regulatory Guide 146 (RG146). See full bio
James's expertise
James has written 255 Finder guides across topics including:
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
Gary Ross's expertise
Gary Ross has written 725 Finder guides across topics including:
I am looking for an insurance company to insurer my son’s vehicle he is 19 years old and has had two suspensions with in 2 years, the vehicle is a 2008 Toyota Hilux.
Finder
SarahJuly 18, 2024Finder
Hi Byron, It may be possible to get cover, but will definitely vary between insurers. He should check out this page: https://www.finder.com.au/car-insurance/high-risk-car-insurance – there’s a section on insurers who we found would insure people after license suspension. Obviously his driver profile will be different so there are no guarantee, but this is a good place to start. Best of luck!
MichelleMay 21, 2024
Need to get motor vehicle cover for one day have asked a couple of insurers, telling me they only do yearly policies, in the old days this was usually done by your insurer as a cover note, only required to drive back from motor vehicle dealership.
Finder
SarahMay 24, 2024Finder
Hi Michelle,
This cover isn’t available any more, as the assumption is you’ll continue to want cover beyond driving the vehicle home from the dealership. In the past this was available because you had to buy a policy during business hours. Now that it’s possible to buy a policy online at any time of the day or night or on weekends, there’s no need for one-day cover anymore.
Hope this helps!
rossMarch 6, 2017
need cover have driver (L)with drug conviction less than 3yrs
Finder
ZubairMarch 8, 2017Finder
Hi Ross,
Thank you for your question.
finder.com.au is a comparison and information service and not an insurer. Most insurers in Australia will ensure you with a drug conviction but depending on the offense, you may pay a little more for cover.
Please make sure though to read the eligibility criteria, features, and details of the policy, as well as the relevant Product Disclosure Statement PDS/T&C’s of the policy before making a decision and consider whether the product is right for you. If necessary, speak to the insurance brand to verify any details.
Cheers,
Zubair
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You pay nothing. Finder is free to use. And you pay the same as going direct. No markups, no hidden fees.
You save time. We spend 100s of hours researching car insurance so you can sort the gold from the junk faster.
You can trust us. We say it like it is. We aren't owned by an insurer and our opinions are our own.
I am looking for an insurance company to insurer my son’s vehicle he is 19 years old and has had two suspensions with in 2 years, the vehicle is a 2008 Toyota Hilux.
Hi Byron, It may be possible to get cover, but will definitely vary between insurers. He should check out this page: https://www.finder.com.au/car-insurance/high-risk-car-insurance – there’s a section on insurers who we found would insure people after license suspension. Obviously his driver profile will be different so there are no guarantee, but this is a good place to start. Best of luck!
Need to get motor vehicle cover for one day have asked a couple of insurers, telling me they only do yearly policies, in the old days this was usually done by your insurer as a cover note, only required to drive back from motor vehicle dealership.
Hi Michelle,
This cover isn’t available any more, as the assumption is you’ll continue to want cover beyond driving the vehicle home from the dealership. In the past this was available because you had to buy a policy during business hours. Now that it’s possible to buy a policy online at any time of the day or night or on weekends, there’s no need for one-day cover anymore.
Hope this helps!
need cover have driver (L)with drug conviction less than 3yrs
Hi Ross,
Thank you for your question.
finder.com.au is a comparison and information service and not an insurer. Most insurers in Australia will ensure you with a drug conviction but depending on the offense, you may pay a little more for cover.
You may find our car insurance for learner drivers and car insurance for drivers convicted of drunk driving guides helpful.
Please make sure though to read the eligibility criteria, features, and details of the policy, as well as the relevant Product Disclosure Statement PDS/T&C’s of the policy before making a decision and consider whether the product is right for you. If necessary, speak to the insurance brand to verify any details.
Cheers,
Zubair