Third Party Fire and Theft Car Insurance

What car insurance policies are available?

In Australia, it’s not compulsory to have car insurance that covers property damage. However, every driver must have compulsory third party (CTP) insurance to cover injury to people or death. This is included in your registration paperwork in all Australian states and territories, except NSW. In NSW, you must buy CTP insurance (referred to as a green slip) through a private approved insurer before registering your car. Regardless of where you live, it’s worth checking that you have CTP insurance, as penalties apply for anyone not covered.

On top of CTP, you may wish to purchase a car insurance policy that covers damage to property. Your options include:

• Third Party Property
• Third Party Fire and Theft
• Comprehensive Car Insurance
• Classic Car
• Luxury or Prestige Car Insurance

The last two options are top of the range and only worth considering if you drive a classic or luxury car. However, for the majority of people, third party (fire and theft) and comprehensive are going to be the options.

Third Party Property vs Third Party Fire and Theft

Third party property does not usually cover any damage to your own car – although in some instances you may be covered if not at fault. That said, it does make sure you don’t end up in debt if you crash into a fancy sports car. This is usually the cheapest car insurance option¹, but you’ll always have to pay for damage to your own car.

Third party fire and theft is usually more expensive than third party property², because it gives you some cover for your own car.

Benefits of Third Party Fire and Theft Car Insurance

Third party fire and theft gives you more cover than third party property and less than comprehensive. It’s a great intermediate option if you want some cover for your own car without having to pay the premium for full comprehensive cover.

A typical third party fire and theft policy covers you for³:

1. damage to other people’s property that is caused by your car
2. damage to your car that is caused by fire or theft

Many car insurers will provide the following benefits:

• Damage to your car that is caused by earthquake
• Emergency accommodation costs
• Transport and repair costs (up to a set amount)
• The contents of your car (up to a set amount)
• Damage to your car caused by an uninsured driver (up to a set amount)
• Car hire if your car is stolen
• Debris removal
• Storage costs
• Towing costs (to the nearest safe place or repairer)
• Re-coding costs for locks and barrels if keys are stolen
• Infant car seats

Each insurer offers different third party fire and theft policies, so it’s important to check the inclusions before purchasing.

Find the cheapest Third Party Fire and Theft Policy

As with all insurance policies, third party fire and theft premiums will vary, both in terms of pricing and inclusions. To find the right policy for you, the first step is deciding what cover you need. Comparing policies with multiple insurers will give you an idea about typical inclusions, and optional extras.

Once you know what’s on offer, you can find a suitable policy and tailor it to best suit your needs. From there, it’s as simple as comparing like with like to find good value for money.

Some simple ways to potentially reduce your premiums are⁴:

1. Choosing a car that’s cheaper to insure
2. Not adding modifications to your car
3. Parking your car in a garage overnight
4. Maintaining a safe, no-claim driving record
5. Driving less than the average person
6. Opting for market value instead of agreed value
7. Installing a car alarm or immobiliser
8. Opting out of unnecessary optional extras
9. Paying your premium annually instead of monthly
10. Compare policies online or via phone with iSelect

Why honesty is the best policy

Tailoring your third party fire and theft policy to suit your needs is a great way to find a good deal. Always aim to give accurate information to your insurer and update them whenever your circumstances change. Something as simple as moving house can affect your insurance premium – for the better or worse.

If you provide inaccurate information, whether inadvertently or not, your insurer may not pay for damages in the case of an at-fault accident³. So it pays to be upfront from the start and have peace of mind that you’ll be covered when it counts.

Compare car insurance policies with iSelect

Don’t purchase a third party fire and theft policy with just any insurer. Compare policies online from iSelect's range of providers and select a policy that suits you.

Sources:
1. https://www.sa.gov.au/topics/driving-and-transport/vehicles-and-registration/vehicle-insurance/
2. http://www.rms.nsw.gov.au/geared/your_car/registration_and_insurance/get_covered.html
3. https://www.moneysmart.gov.au/insurance/car-insurance/
4. https://www.moneysmart.gov.au/tools-and-resources/publications/factsheet-buying-a-car/