Don't need a whole lot of cover? Third Party Property Damage Car Insurance might be for you.
Third party property damage (TPPD) covers damage caused to someone else's vehicle or property that you cause. So let's say you crash into a Ferrari. You won't be paying the repair costs - your insurance will! Although TPPD won't cover damages to your own vehicle, it's still considered a pretty good idea.
Ready to compare third party property damage policies?
What does third party property damage car insurance actually cover?
Third party property damage is defined as car insurance which covers you for damage to other people’s property, for example their car or home, up to a certain limit (commonly $20 million). Third party property damage covers only this and nothing else, with the exception of some policies which partially cover damage to your own vehicle as well, even if you were found to be at fault. Cover includes:
- Repair or replacement costs for damage to other people’s property.
- Legal costs you incur while defending yourself against liability claims.
- Limited damage to your car if you’re involved in a collision with a vehicle driven by an uninsured driver.
Additional benefits
Although third party property damage is a pared down policy, some insurers have additional benefits that provide a little added security without raising costs to the level of a comprehensive policy. These additional benefits may include things like:
- Loss or damage to your personal items
- Cover for modifications and accessories
- Emergency repairs
- Towing
- Temporary replacement vehicle
What’s the difference between third party and other car insurance?
Comprehensive, third party fire & theft and third party property damage are the three levels of car insurance you can find from most insurance providers.
- Third party property damage (TPPD) cover. TPPD is the most basic form of cover and protects you when you are legally liable for damaging someone else’s vehicle or property.
- Third party fire & theft (TPP F&T). TPP F&T cover offers the same protection but also covers you if your vehicle catches fire or is stolen. This is a mid-level policy that is more expensive than third party property damage insurance.
- Comprehensive. Comprehensive insurance offers the broadest range of car insurance cover available. As well as cover for all the above, it also covers damage to your car from accident, storm, flood, hail and malicious acts. New for old replacement and guaranteed repairs are common features of a comprehensive policy.
Compulsory third party (CTP) insurance is mandatory in Australia, and is a completely separate policy.
| Legal Liability |
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| Immediate Replacement Car |
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| Damage to other people's property |
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| Fire |
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| Malicious damage |
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| Theft |
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| Collision |
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| Earthquake |
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| Emergency Accommodation, Transport and Repairs |
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| Towing Costs |
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| Contents Inside the Car |
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| Accidental Damage |
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| Intentional Damage |
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| Storm or Flood |
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| Hire car following theft |
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How much does it cost?
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 and also have multiple traffic infringements to their name.
- How much excess do you want to pay? If you want to save money on your premiums you can elect to pay a higher excess on your car insurance policy.
- 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 Pay As You Drive policies.
Tips for getting lower premiums
- Shop around. Don’t just sign up for the first policy you see just because you saw a convincing ad on TV. Compare the cover offered by different policies to find a better deal. If you think you’re paying too much, get quotes from other insurers.
- Compare quotes. Getting car insurance quotes online is quick and easy. Obtain quotes from multiple insurers and compare them in relation to the level of cover offered.
- Choose a higher excess. Your insurer will offer you a lower premium in return.
- Nominate drivers. If you can nominate certain people to drive your car, especially if they are all over the age of 25, this will reduce the cost of your cover.
- Bundle your cover. If you have a separate policy (for example home insurance) with a provider, they may offer you a discount on your car insurance policy.
- Buy online. Many insurers offer sizeable discounts to their customers for purchasing their policies online.
- Secure your vehicle. Vehicles with security systems and those that are kept garaged overnight are less expensive to insure than ones parked on the street or without security systems.
What type of car insurance do I need?
How do I choose the right car insurance policy for me? You need to consider a range of factors.
- Is your car expensive? If you drive an expensive car, you will most likely want to take out comprehensive cover to give your car – and your wallet – the ultimate protection. If your car is a little less valuable, selecting a lower level of cover like third party property or third party fire & theft may be a more suitable option.
- Do I need these benefits? You only want to pay for the cover benefits and options you’re likely to use, so make sure you know exactly what is covered under these different policies before you decide on the right one for you.
- Would your car be expensive to repair? Consider how likely it is that you’ll be able to afford the repairs if you’re involved in an accident, or how you’ll manage on a day-to-day basis if your car is stolen and you don’t have cover in place. Answering a few simple hypothetical questions will help you determine the level of cover that suits your needs.
What kind of exclusions are there?
There are some general exclusions that apply to most third party property damage policies. You won't be cover if your car:
- Was being used for driving tuition or demonstrated for sale at the time of the incident
- Was being driven by an unlicensed driver
- Was being used in a race, trial or test
- Has been modified from the maker’s specifications or fitted non-standard accessories
- Was being driven in an unsafe or un-roadworthy condition
- Was overloaded
- Was being used for hire or reward
- If the driver was under the influence of alcohol or drugs, or if they refused to submit to drug and alcohol testing
- If your claim is for the reduced value of your vehicle after repairs have been properly performed
- If your claim is for personal items stolen from your car
- If your claim is for repairs carried out without the insurer’s consent
- If your claim is for depreciation, wear and tear, rust or corrosion
- If your claim is for mechanical, structural or electrical breakdown
- If your claim is for consequential loss
- If you have failed to take reasonable steps to prevent any loss or damage
- If your claim is for tyre damage caused by braking, punctures bursts and cuts
- If the loss or damage was incurred thanks to a deliberate or reckless act by you
- If your claim results from the lawful seizure or repossession of your car
- If your claim relates to acts of war or terrorism
- If your claim is for additional loss suffered when driving your car after it has been involved in an accident
Some final questions you might have
* The offers compared on this page are chosen from a range of products finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your personal financial circumstances when comparing products.
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