Compare Third Party Fire and Theft Car Insurance

This can vary depending on the terms of your specific policy. However, you’ll usually be covered if you damage someone else’s vehicle or house in a car accident. You might also be covered if you damage their shop, caravan, boat, bicycle or the contents inside their car. Needless to say, this insurance might be able to save you some serious cash in repair costs! 

Just keep in mind that there’s usually a limit on how much you can claim. For this reason, you’ll always want to read your policy’s Product Disclosure Statement (PDS) to find out how much your insurer is willing to pay, as well as what kind of damages and repairs they’ll insure. 

True, compulsory third party insurance (or CTP)  is mandatory and other car insurance policies, well, aren’t. And if you don’t want to pay for additional insurance, you do you. But that could then open you up to all kinds of risks.

See, CTP doesn’t cover property. It only covers you for personal injury or death if your car is involved in an accident. But crucially won’t cover you for the repair costs if you rear-end a Bentley.  In this instance, either you’ll need to cough up for the damages yourself, or risk getting sued by a very angry driver. So yes, additional insurance costs a bit more in premiums than CTP, but it might also prevent you from dipping into your savings for a big payout.

Well, third party fire and theft insurance can be more expensive because it provides more coverage than a third party property policy. Third party fire and theft, as the name suggests, also helps cover you if your car is stolen and not recovered as well as if it is damaged due to fire. As the name suggests, third party property generally only covers other people’s property. It is however always important to review the Product Disclosure Statement (PDS) because coverage can differ between policies.

Your third party fire and theft insurance can help cover the costs if you damage someone else’s property in a car crash. However, some insurers will also offer a limited amount of cover if someone else crashes into you. This means they might help pay for the repair costs on your car too.

Usually, this will depend on the following conditions: 

• The driver of the other vehicle was entirely at fault 
• The driver of the other vehicle isn’t insured

The maximum amount you can claim here might also be less than you could get on a comprehensive car insurance policy. For instance, a limit of $5,000 as opposed to $20,000,000. But, as always, you’ll want to check your insurer’s Product Disclosure Statement (PDS) to find out if this cover is even offered in the first place.

Many insurers provide additional cover as part of their third party fire and theft car insurance. This can include:  

• Damage to your car caused by an uninsured driver
• A hire car if your car is stolen
• Towing costs (to the nearest safe place or repairer)

Just keep in mind that not all insurers cover all these additional items and limits will often apply. So make sure you check the Product Disclosure Statement (PDS) before you decide on a policy. 

Yes. Most insurers will ask you to pay an out-of-pocket fee—also known as an excess—when you make a claim on third party property insurance or third party theft and fire insurance.

This fee also goes towards the cost of the claim. Many comprehensive car Insurance policies allow you to choose a higher excess in exchange for lower premiums. However, this can be less common for other policies. 

Depending on your circumstances, you might also be required to pay an additional excess. These can include:

• Age Excess: If the driver of your car gets into an accident, and they’re below a certain age (usually 25 or 35), then this excess may apply.
   
• Unlisted Driver Excess: If the driver of your car gets into an accident, and they’re not listed on your policy, then this excess might also apply.
   
• Inexperienced Driver Excess: This excess applies if the driver of your car hasn’t held a full Australian driver’s licence for a certain period of time (e.g. two years).

However, many insurers will not require an excess if you claim for a ‘no-fault accident’—an accident that was caused entirely by another driver or person. They may also waive the additional excesses if your car was stolen. But this all depends on the terms laid down by your insurer, so make sure you speak to them beforehand to find out what kind of excesses you might be required to pay.

Let’s face it, life is costly enough without paying a small fortune in Car Insurance premiums. Fortunately, there are a number of things you might be able to do that can help reduce your premiums: 

• Choose a safe car that’s affordable to repair 
• Avoid unnecessary modifications to your car 
• Keep your car safe in a garage overnight 
• Maintain a safe, no-claim driving record 
• Install a car alarm or GPS tracking device  
• Pay your premium annually instead of monthly 
• Look for insurers who provide online discounts 
• Compare policies online to find a good deal

Most insurers will ask you all the important questions up-front. Besides your personal details, and all the information about your car’s model and make, they might want to know:

• How the car is financed 
• How many kilometres you’ll drive each year 
• Where the car is parked at night 
• If you’ve had any incidents or claims 
• Whether it has any unrepaired damage 
• Whether it has any modifications 
• Whether it will be used for business purposes 
• Whether anyone else will drive the car

It goes without saying that you need to tell the truth about everything. If you get into an accident and your insurer discovers you gave false information, then they can reduce the amount they will pay or reject your claim. You’ll also want to tell your insurer if your circumstances change; for instance, if you’re going to start using your car for business purposes or install modifications.

Many car insurers do not provide this option for third party fire and theft insurance. Instead, most insurers will designate a ‘preferred repairer’ to conduct the repairs for an eligible claim.

Furthermore, while some car insurance policies provide the option to choose your own repairer, these are usually comprehensive car insurance policies. Even then, this is typically offered at an extra cost in the form of an ‘optional extra’.

Optional extras are the ‘nice-to-haves’ that you can add to Insurance at an additional cost. They’re things like cover for windscreen replacement or a hire car after a car crash.

Many insurers only offer these extras for comprehensive car insurance. However, there are always exceptions. For instance, some insurers offer an ‘excess buster’ as an optional extra for third party fire and theft; this can cover the cost of your basic excess—meaning you won’t have to pay it—on one claim per year.

This is another thing that will depend on the terms of your policy. Some insurers won’t offer cover for personal effects—like groceries, clothing or child safety seats—under third party fire and theft insurance. Instead, they might provide it as part of their comprehensive car insurance.

Again, you’ll want to check your policy’s Product Disclosure Statement (PDS) to get a good overview of what kind of cover you’ll get. Sorry to repeat ourselves so much, but it needs to be said!  

In the end, this comes down to what you want. Your needs, your budget, and the level or risk you’re willing to accept. Third party fire and theft car insurance won’t typically cover you for damage to your car if you get into a bingle, but it will cover you for a whole lot of other, costly incidents. Generally speaking, it’s also cheaper than comprehensive car insurance; though it usually costs more than a simple third party property policy.

You’ll also want to ask yourself a few questions before you reach a decision. For instance, do you live in an area with a higher risk of fire? What about theft in your area? How would you go if you suddenly needed to replace your car after it was stolen or damaged in a fire? Do you have a secure place to park your car overnight? While this isn’t the full comprehensive cover, it can give you a sense of added peace of mind, which could be worth the extra money.