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.

Our picks

If you've opted for third party property damage car insurance over comprehensive cover, you probably just want a cheap insurer that has a good reputation. To help you find one, our insurance team collected 250 third party property damage quotes from 20 popular providers, including those not currently available on Finder.

We've hand-picked 2 based on price, features and complaints data. Both of the picks cover you for accidental damage your car causes to other people's property, including their vehicles.

Great for price: Virgin third party property damage car insurance

Our verdict

Virgin is consistently one of the cheapest third party policies available. Our team got 250 quotes for third-party car insurance from 20 popular providers. Virgin was the joint cheapest on average across all major states.

• Pros and cons

  • It cost an average of $37 per month in our research.
  • It was $13 a month cheaper than the average price.
  • It covers up to $5,000 worth of damage caused by an uninsured driver.

  • Budget Direct was only a few cents more.
  • Like other third-party policies, it does not cover damage to your own car.
  • This is third party only cover; not third party, fire and theft.

• Our methodology

  Our team gathered 250 quotes from 20 different third-party car insurance policies across NSW, QLD, VIC, SA and WA. The car model used for all quotes was a 2007 Mazda 3 Neo BK Series 2 Auto 5DR hatchback.

  Virgin emerged as the most affordable policy on average. Providers available in only one state, such as RAA, weren't included in the comparison.

  It's important to note that while our team conducted extensive research, Virgin may not necessarily be the cheapest policy for every individual. Various factors such as location, driving history, age, and gender can influence the price of a policy.

  Read more about our third party car insurance methodology.

Selected by Gary Ross Hunter – car insurance specialist

More info

Great for value: Budget Direct third party property damage car insurance

Our verdict

Budget Direct was the second cheapest third party policy, according to our research. To be exact, it was $1 more a year than Virgin! They're virtually the exact same policy but Budget Direct has more positive online reviews, so is still worth calling out.

• Pros and cons

  • It's one of the cheapest third party property damage policies.
  • You can lower costs further by restricting drivers.
  • Comparatively good reviews online.

  • There's a 15% sign-up discount but it only applies for the first year.
  • Like other third party policies, it doesn't cover damage to your own car.
  • It may cost you more if there's a younger driver on the policy.

• Our methodology

  Our team got 250 quotes across 20 different third party car insurance policies. We got quotes in NSW, QLD, VIC, SA and WA. The car model we used for all quotes was a 2007 Mazda 3 Neo BK Series 2 Auto 5DR hatchback.

  Budget Direct was the second cheapest policy on average. We selected it as our value pick because it has good online reviews and scored highly in the Finder Customer Satisfaction awards.

  Keep in mind, while our team did a lot of 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.

  Read more about our third party car insurance methodology.

Selected by Gary Ross Hunter – car insurance specialist

Get a quote

• Third party car insurance costs: research breakdown

  Keep in mind that these costs are based on a limited profile that we've outlined below. As with all car insurance, the cost of a third party policy will vary based on your age, location, gender, and other variables such as where you park your car.

  Brand	Yearly cost	Apply
  AAMI	$481	More info
  Bingle	$427	More info
  GIO	$511	More info
  Australia Post	$433	Get quote
  Budget Direct	$389	Get quote
  Kogan	$487	More info
  Qantas	$448	Get quote
  QBE	$567	Get quote
  Everyday	$699	More info
  ahm	$722	More info
  CGU	$246.20	More info
  Youi	$527	Get quote
  Coles	$491.76	More info
  Suncorp	$559	More info
  Virgin Money	$391	More info
  NRMA	$512	More info
  Bendigo Bank	$225.82	More info

  To determine this estimated cost, we sourced quotes in 2023 using this profile:

  • Male, aged 35
  • Lives in New South Wales
  • Drives a 2007 Mazda 3
  • Car travels up to 15,000kms per year
  • Excess $700 (differs depending on provider)
  • Driver has held his license for 5+ years

  • Car used for private use
  • Driver has made no claims in the last 3 years
  • No additional drivers
  • Excludes drivers under 25
  • No finance on the car
  • Car is kept in a garage
  • Market value

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 , Finder publisher and car owner

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.

Car insurance: Key terms to know

Here's a summary of common definitions you'll see with car insurance. Plus what they actually mean to help you while you're comparing.

• View glossary

  Policy term	Definition	Good to know
  Cover for drivers under 25 years old	Whether you want insurance for an additional driver under the age of 25.	Be sure to shop around for cheaper deals available each year as you get older and gain more driving experience.
  Flexible excess options	This policy feature lets you adjust the excess on your car insurance policy. An excess is the amount you need to pay upfront to make a claim.	Policies tend to split their excesses as follows: a basic excess and an under-25 driver excess.
  Legal liability	Cover in case you get sued as a result of injury or damage you cause to people or their property.	Most insurers pay up to $20 million in legal liability cover.
  Multi-policy discount	A discount an insurer offers you if you hold at least one other policy with them.	Savings usually range from 5–25%. But it isn't always the case you'll get cheaper cover if you hold multiple policies with the same insurer.
  No claim discount	A discount you get on your car insurance premium for each year that you don't make a claim. It's also known as a no claim bonus.	Your discount can be as high as 15% if you have no at-fault claims for 5 years.
  Pay monthly at no extra cost	You can make payments each month, rather than annually, at no extra cost.	Only a few insurers in Australia won't charge you more by paying monthly. So, you can often save by paying your whole premium in one go (if you can afford it).
  Third party car insurance	Entry-level insurance that covers damage you cause to someone else's vehicle or property.	This policy, often referred to as third party property damage (TPPD), won't cover your car; but it could stop you from facing large bills from other people.
  Third party, fire & theft	Mid-range cover that'll protect you financially for damage to another person's vehicle or property as well as damage to your car resulting from fire or theft.	Third party, fire & theft doesn't cover damage to your car in the event of an accident; for that, you'll need comprehensive car insurance.
  Windscreen cover	With windscreen cover in place, your excess gets waived so you're not out of pocket if your car window gets damaged.	You can add excess-free windscreen cover to a comprehensive car insurance policy. This could save you hundreds of dollars if you need to replace your windscreen, which can otherwise cost as much as $1,000.
  Roadside assistance	A type of insurance that protects you if you get stranded because of an issue with your car. It's also known as breakdown cover.	You can add roadside assistance to some car insurance policies; there are very few insurers who'll include it automatically. A roadside assistance callout won't count as a claim.
  Underwriter	The company that assesses the risk of providing you with insurance.	Examples of underwriters in Australia include Youi Pty Ltd, Insurance Australia Limited, AAI Limited and The Hollard Insurance Company Pty Ltd.

Written by

Gary Ross Hunter

Editor, Insurance & Innovations

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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