Don't need a whole lot of cover? Third Party Property Car Insurance could be what you need.
A Third party property damage (TPPD) policy covers damage you cause to someone else's vehicle or property. So let's say you back into a Mercedes. You won't be paying the repair costs - your insurance will! Although this kind of policy won't cover damage to your own car, it's still a really good idea to make sure you're not out of pocket.
Is third party property insurance right for you?
- Have a car that is not worth much money
- Can't afford higher cover at this time
- Want more than the bare minimum cover, which only covers injuries to people
Ready to compare third party property car insurance?
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Third party property car insurance special offers for April 2019
What is third party property insurance?
Third party property is a type of car insurance policy that 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).
- Repair or replacement costs for damage to other people’s property.
- Legal costs you incur while defending yourself against liability claims.
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.
How much does third party car insurance cost?
During our analysis of 6 Australian car insurance brands, we found that the cost of third party property damage car insurance can differ from $25 to $43 a month. So if you're looking for a cheaper third party policy, your best option would be to get a bunch of quotes.
To get these costs, we averaged together the cost of a male and a female Sydneysider, both born on 1/1/1983, driving a 2016 Ford Falcon.
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.
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 also 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.
How to find the cheapest third party car insurance
- 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 kind of exclusions does 3rd party property insurance have?
There are some general exclusions that apply to most third party property damage policies. For example, you won't be covered if:
- You have modified your car with non-standard accessories, such as custom paint work and turbo or supercharged engines. Some modifications will be covered, such as radio and stereo systems, bike racks, alarm systems and bull bars, but to be covered let your insurer know first.
- Your car is overloaded with too much weight.
- You were using your car for 'hire and reward', ie. to carry other people's goods in return for payment.
- Whoever is driving your car is under the influence of alcohol or drugs, or if they won't take a breath or drug test.
- Your car has personal items stolen from it.
- Your car breaks down (for mechanical, structural or electrical reasons).
- There is tyre damage caused by braking, punctures bursts (for example, from a nail on the road) and tyre cuts (either deliberate or accidental).
- The damage is as a result of a deliberate or reckless act by you.
- Your car has already been involved in an accident, and there is an additional loss incurred when driving it.
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* 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.