Compare third party car insurance from Australian brands
Third party property damage (TPPD) is a basic form of car insurance for Australian drivers. This type of policy provides cover when your vehicle causes damage to someone else’s vehicle or property. In addition to covering your legal liability up to a certain limit, usually $20 or $30 million, these policies sometimes also include cover for when your car is damaged in a no-fault accident with an uninsured motorist.
Third party property damage car insurance is available from a wide variety of respected Australian insurance providers.
Compare third party property damage policies and apply
What is third party property damage car insurance?
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 (up to $5000, for example) if you’re involved in a collision with a vehicle driven by an uninsured driver. However, you’ll have to be able to prove that the other driver was at fault for the accident
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
- Temporary replacement vehicle
What does TPPD car insurance not cover?
Just like with any other form of insurance policy, there are several circumstances under which a third party property damage claim will not be paid. These include:
Just like with any other form of insurance policy, there some circumstances under which a third party property damage claim will not be paid. These include:
- If your car was being used for driving tuition or demonstrated for sale at the time of the incident
- If your vehicle was being driven by an unlicensed driver
- If the driver was under the influence of alcohol or drugs, or if they refused to submit to drug and alcohol testing
- If your car was being used in a race, trial or test
- If you have modified your car from the maker’s specifications or fitted non-standard accessories
- If your car was being driven in an unsafe or un-roadworthy condition
- If your car was overloaded
- If your car was being used for hire or reward
- 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, for example forgetting to lock your car when leaving it unattended in a public place
- 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
- f 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
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.
|Damage to your car||No||No||No||Yes|
|Damage to a third party's car||No||Yes||Yes||Yes|
|Injuries or death of a third party||Yes||No||No||No|
|Loss or damage as result of theft||No||No||Yes||Yes|
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 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.
Who's got the best price?
According to the 2015 Best of the Best Money Magazine, the cheapest average car insurance are the following:
|Provider||Average annual premium||Premium range||Max car age for new replacement|
|1||Budget Direct||$574.03||$324.45||2 years|
|3||1300 Insurance||$671.62||$379.61||2 years|
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 cheaper 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 should I look for in a TPPD policy?
The exact terms and conditions of your TPPD insurance depend on the details of the policy. The three main terms to look out for are agreed value or market value, the amount of excess and whether or not it includes an uninsured motorist extension.
What is the difference between agreed and market value?
Car insurance policies are offered in either agreed value or market value form. If you take out a market value policy, your car will be covered up to its market value at the time of a claim, subject to depreciation. The market value is determined by the make, model, age and condition of your vehicle.
Under an agreed value car insurance policy, you and your insurer agree upon the value of your car and lock in that value until the time comes to renew your cover.
What does excess mean?
The excess is the amount you are required to pay to contribute to 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 cheaper 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. It covers damage to your vehicle up to set limits (typically around $3,000-$5,000) damage cover 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.Back to top
Q. Does third party insurance cover theft? Q. Does third party insurance cover windscreen damage? Q. How does third party insurance work? Q. Will my third party insurance cover me when driving other cars? Q. Does this party insurance cover accidents? Q. How can I purchase car insurance? Q. When does my policy start if I buy cover online? Q. What is a no claim bonus? Q. What happens if I don’t provide the full details of my driving history to my insurer? Q. Which policy offers the cheapest car insurance? Q. I modified my car, does that affect my insurance? Q. Are tools of trade covered by TPPD? Q. Is my baby seat covered?
Q. What does third party insurance mean?
How do I make a third party property damage claim?
Q. Does third party insurance cover theft?
Q. Does third party insurance cover windscreen damage?
Q. How does third party insurance work?
Q. Will my third party insurance cover me when driving other cars?
Q. Does this party insurance cover accidents?
Q. How can I purchase car insurance?
Q. When does my policy start if I buy cover online?
Q. What is a no claim bonus?
Q. What happens if I don’t provide the full details of my driving history to my insurer?
Q. Which policy offers the cheapest car insurance?
Q. I modified my car, does that affect my insurance?
Q. Are tools of trade covered by TPPD?
Q. Is my baby seat covered?
If you’re involved in an accident, the first thing you need to do is ensure that everyone is safe and decide if police, fire or ambulance services need to be called. Next, stay at the scene of the accident but make sure not to admit fault or liability. Exchange details with the other drivers involved and make sure to get their contact details, driver’s licence number, registration and insurance details. You can also get the details of witnesses and take photos of the scene if at all possible.
If you decide you would like to make a claim, contact your insurer as soon as possible to let them know what has happened. You’ll need to provide them with full details of the incident and provide any supporting documentation they may require. Your insurer will then begin processing your claim.
- Inform your insurer as soon as possible after a claimable event.
- Inform your insurer of the specific details of the loss or damage so that they can assess your claim quickly. If there were other people involved in the incident, be sure to let them know who was at fault.
- Be accommodating with any representatives should you be required to answer questions or participate in interviews.
- Make sure you are able to provide other proof of ownership, receipts or valuations.
- Pay your excess.
- Disclose any other insurance.
- Allow your insurer to inspect your car.
- Be cooperative your insurer while they defend, negotiate or settle your claim.
Stephanie's first car
It was Stephanie’s first car. It was a beat up old Holden given to her as a gift, but it was all hers and she loved it. She never even considered covering it with anything other than compulsory third party insurance, reasoning that the car was hardly worth anything, and such a decrepit old vehicle would cost more in premiums than one could save.
Her parents, however, insisted that she at least take out third party property damage insurance. She initially refused, but eventually relented.
A few weeks later she was extremely glad she did. Being a relatively new driver with a manual, she ended up rolling into the Mercedes behind her while stopped on a hill. It wasn’t severe, but the damage done to the other vehicle was worth more than her entire car. When she found out how much it would cost, Stephanie was distraught. There was simply no way she had that kind of money.
It was therefore with a huge sense of relief that Stephanie made a successful insurance claim. Later, the thought struck her that getting third party property damage insurance was literally the best financial decision of her life. It cost her a few dollars, but saved thousands.