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Compare third-party property, fire and theft car insurance
Written by
Kervin Mathew
Edited by
Ellie Garran
Reviewed by
Adrian BennettWe compare many well-known car insurers
iSelect does not compare all providers in the market or all policies offered by our partners in your area. Not all policies or special offers are available to all customers. Learn more.
What is third-party property, fire and theft car insurance?
Third-party property, fire and theft car insurance is a type of car insurance cover that’s designed to cover the cost of repairing accidental damage you cause to other people’s property, plus your own car if it’s stolen or damaged by fire.
How do I find a third-party property, fire and theft policy?
A great way to start your search for a third-party property, fire and theft policy is to explore policies online. You can use a comparison website like iSelect and find quotes from a range of well-known car insurance brands in Australia.
What’s covered by a third-party property, fire and theft car insurance policy?
Third-party property, fire and theft car insurance covers damage you (or perhaps someone driving your car) cause to someone else’s car or property, as well as covering your own car for theft or fire damage. It can also include towing, recovery and storage costs, subject to policy terms. If your car is stolen, you could also be covered for the costs of hiring a car.
The best way to be sure about what’s covered (and what isn’t) is to check directly with the insurer or read the policy’s Product Disclosure Statement for exclusions and conditions of cover. For example, a third-party property, fire and theft policy might not cover damage caused by an attempted theft or any items that were stolen from your car. These types of events are more likely to be covered by comprehensive car insurance.
What’s typically covered
Damage to other people’s property
If your car damages someone else’s car, house or anything else they own, this insurance might cover the repair or replacement costs. Be aware of limits on how much you can claim and the kinds of damage that are covered.
Theft of your vehicle
Imagine the peace of mind knowing that you’ve got cover if your car is stolen. There may be limits to how much each provider will pay, though.
Fire damage
If you lose your car to a fire or it sustains any fire damage, your policy may cover you for the insured value of your vehicle or for any repairs it needs. In the case of bushfire damage, there may be waiting periods involved.
Uninsured driver cover (limited)
Say someone without insurance damages your car in an accident. Your insurer can potentially cover the damage to your car up to a certain amount. For this to happen, the other driver needs to be entirely at fault, and you need to give your insurer some details about the uninsured driver and vehicle.
Towing costs
If your car is undrivable due to fire damage, an attempted theft or if found after a theft, a third-party property, fire and theft policy can possibly cover the costs of recovering and towing it to the nearest repairer or a holding facility. Storage costs might also be included, as long as they’re for any period between when you lodge your claim and when it’s settled.
Hire car following a theft
With this benefit, you could get a refund on the cost of a hire car. Though it can come with limits on days, amounts, and the kind of car you hire, it can be worth the convenience of still being able to get around.
What’s typically not covered
Accidental damage to your car
Your third-party property, fire and theft insurance won’t cover your car for damage or total loss unless it’s due to fire or theft. That means if you cause an accident, you’ll have to pay for any repairs to your own car.
Weather events
Any vehicle damage caused by thunderstorms, floods or hail is excluded from cover under most third-party property, fire and theft policies.
Personal belongings in your car
Unless you pay for it as an optional extra, some insurers won’t cover personal property like groceries, clothing, or child safety seats under third-party property, fire and theft cover. Instead, they might provide it as part of a comprehensive car insurance policy.
Illegal activities
Disobeying speed limits, racing, driving under the influence, and driving without a licence can void your policy.
Third-party property, fire and theft car insurance explained, with iSelect
Third-party property, fire and theft car insurance works as a mid-tier type of car insurance, offering cover for damage to other people’s property along with some cover for your own car, but only if it’s stolen or damaged by fire. Learn how it’s different from other types of car insurance and also how you can get a third-party property, fire and theft policy through iSelect.
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Helpful tip
While third-party property, fire and theft insurance is definitely useful, you should also be aware of its limitations. It generally won’t cover your car if it’s damaged by floods or battered in a storm. You won’t be protected if you end up hitting any wildlife, either. To be covered for these events, you’ll generally need comprehensive car insurance.
Toby Hagon
Motoring Journalist
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We’ll show you a range of policies side by side, including their monthly premiums, inclusions, and exclusions, along with any optional extras.
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Is third-party property, fire and theft cheaper than other types of car insurance?
Yes, third-party property, fire and theft car insurance is significantly cheaper than comprehensive car insurance, but it can be more expensive than basic third-party property car insurance. According to quotes for customers who purchased car insurance through iSelect, average annual premiums for third-party property, fire and theft car insurance range from $482 to $799 depending on the state, compared to $978 to $1,492 for comprehensive car insurance and $392 to $705 for third-party property car insurance.1Refer to table ‘Average car insurance premiums by state’ So, for its added benefits and slightly higher cost compared to third-party property insurance, some might find that third-party property, fire and theft offers a good balance between cost and coverage.
Looking at car insurance premiums in New South Wales (NSW), Queensland (Qld), Victoria (Vic), South Australia (SA) and Western AustraIia (WA) it’s fairly clear that third-party property, fire and theft cover is closer to third-party property in costs. For instance, iSelect customers in NSW paid an average of $594 for third-party property, fire and theft cover, which is slightly above the $512 average they paid for third-party property cover but a far cry from the $1,261 average premium they paid for comprehensive car insurance.2Refer to table ‘Average car insurance premiums by state’
| State | Comprehensive | Third-party property, fire and theft | Third-party property |
|---|---|---|---|
| NSW | $1,261 | $594 | $512 |
| Qld | $1,122 | $535 | $404 |
| Vic | $1,492 | $799 | $705 |
| SA | $1,024 | $506 | $392 |
| WA | $978 | $482 | $416 |
Note: These figures represent the average annual indicative quote to insure a car in each specified state for customers who purchased car insurance through iSelect during the period from 1 June 2025 to 31 May 2026. All levels of cover included (comprehensive, third-party property, fire and theft, third-party property). Quote data includes indicative stamp duty and GST where applicable. Premiums have been rounded to the nearest dollar.
What affects the cost of my third-party property, fire and theft policy?
Insurance companies consider factors such as your age, where you live, the type of car and how you use it when deciding on the cost of your third-party property, fire and theft policy.
- Age of driver: Younger drivers with less experience on the road are likely to pay higher premiums due to their higher risk profile.
- Where you live: Some areas have more thefts or car accidents than others or are more prone to bushfires – making them riskier to insure.
- What you use the car for: It’s often cheaper to insure a car that’s for private use than for business purposes such as deliveries or rideshare.
- Model of car: An expensive, high-performance model with a high market value can cost more to insure than a model that’s cheaper to repair or replace.
How can I reduce the premium on my third-party property, fire and theft policy?
You can potentially lower your third-party property, fire and theft car insurance premium by reducing your overall risk level and shopping around for a good deal on car insurance. Choosing a vehicle with lower market value, keeping your car safe and secure and driving safely are some ways to reduce your risk for insurers.
Of course, buying a lower market value car may be out of the question for some. In that case, you could opt to pay your premium annually instead of monthly, choose a higher excess and compare a range of policies online so you’re not missing out on a better deal (iSelect can help you with that).
Frequently asked questions
How does third-party fire and theft compare to other car insurance policies?
In terms of coverage, third-party property, fire and theft car insurance fits between third-party property insurance and comprehensive car insurance. Like a third-party property policy, it can cover you for property damage you cause to other people’s cars and property, but it also includes fire and theft cover for your own car. It doesn’t cover your car for damage due to an accident that was your fault, extreme weather or vandalism – you’ll only find cover for these in a comprehensive policy.
| Insurance type | Damage to someone else’s car or property | Your own car if stolen or fire damaged | Accidental damage to your own car |
|---|---|---|---|
| Third-party property |  |
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| Third-party property, fire and theft | |
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| Comprehensive | |
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To be sure about what a policy covers, it’s a good idea to read the Certificate of Insurance, Product Disclosure Statement and other policy documents.
What’s the difference between third-party property and third-party property, fire and theft insurance?
A third-party policy generally only covers accidental damage to other people’s property, whereas a third-party property, fire and theft policy covers this and also covers your own car if it’s stolen or damaged due to fire. As a result, third-party property, fire and theft car insurance can be more expensive.
Coverage can differ between insurance providers and policies, so it’s always a good idea to review the policy documents if you’re deciding what level of cover you need and what you can do without.
Should I consider other insurance if I have compulsory third-party (CTP) insurance?
Yes, you should consider car insurance on top of CTP insurance if you want any coverage for property damage. CTP insurance only works as liability cover for injuries or deaths caused by your car in an accident, but it won’t cover damage to property, including your car and other people’s vehicles. Not having car insurance could open you up to all kinds of risks, like paying for your and anyone else’s repair costs out of pocket if you cause an accident.
CTP insurance, or Green Slip if you’re in New South Wales, is mandatory, while car insurance mostly isn’t. But if you only have CTP and you cause damage to another vehicle (heaven forbid it’s a pricey Porsche!), either you’d need to cough up for the damages yourself, or you’d risk getting sued by a very angry driver. So yes, additional insurance will cost more than having just CTP insurance, but it might also prevent you from dipping into your savings or taking out a hefty loan to pay for third-party property damage or even damage to your own car.
Will third-party property, fire and theft insurance cover my car for crashes or collisions?
No, it generally won’t. But it can help cover repair or replacement costs for damage you cause to someone else’s property in a car crash. That said, if an uninsured motorist crashes into you, some policies may offer a limited amount of cover for the damage caused to your car.
Usually, this will depend on the following conditions:
- the driver of the other vehicle was entirely at fault
- the driver of the other vehicle is identified.
The maximum amount you can claim here might also be less than you could get on a comprehensive car insurance policy. For example, you could be looking at 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 to find out whether this coverage is even offered in the first place.
Do excesses apply to third-party property, fire and theft car insurance?
Yes, most insurers will ask you to pay an out-of-pocket fee, known as a basic excess, when you make a car insurance claim on a third-party property, fire and theft policy, as with other types of car insurance. Other excesses can also apply, such as an age excess, an unlisted driver excess and an inexperienced driver excess. Here’s when they might apply:
- Age excess: If the driver of your car gets into an accident, and they’re below a certain age (usually 25)
- Unlisted driver excess: If the driver of your car gets into an accident, and they’re not listed on your policy
- Inexperienced driver excess: If the driver of your car hasn’t held a full Australian driver’s licence for a certain period (e.g. two years).
However, many insurers won’t require an excess for a not-at-fault claim – that’s if you claim for damage that was caused entirely by another driver or person in an accident. They’ll likely 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.
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.
What kind of information do I need to tell my insurer for a third-party property, fire and theft policy?
If you’re buying car insurance, your insurer will need your personal details and contact information, as well as information about your car, such as its rego, make and model. You’ll also need to get into some specifics, including whether the car is under finance, how much you drive it, where it’s parked overnight and whether anyone else drives it.
You might also need to answer:
- how the car is financed
- whether you’ve had any incidents or claims
- whether the car has any unrepaired damage
- whether the car has any modifications
- whether the car will be used for business purposes.
It goes without saying that you need to tell the truth about everything. If you get into an accident and your insurer discovers that you provided false information, then they can reduce the amount they’ll pay or reject your claim. You’ll also want to tell your insurer if your circumstances change – for instance, if you’re changing addresses or you’re going to start using your car for business purposes or install modifications.
Is third-party property, fire and theft insurance suitable for me?
Third-party property, fire and theft car insurance is a good choice if you want some of the risk to your own car covered but don’t need comprehensive cover. It can be a suitable option for a car with a lower market value that can be replaced if it were lost in an accident but needs some level of cover when it comes to car theft or fire damage.
You could ask yourself a few questions before you make a choice. For instance, do you live in an area where traffic is usually safe but there’s a higher risk of fire? What about theft in your area? What 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?
In the end, it boils down to your needs, your budget, and the level of risk you’re willing to accept. Third-party property, 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 third-party property policy.
Can I earn a no-claim discount (NCD) with a third-party property, fire and theft car insurance policy?
Unfortunately, NCDs are becoming a thing of the past. Among the insurers that still offer them, an NCD might only be available with comprehensive car insurance. If you’re thinking of upgrading your level of cover to get an NCD (or no-claims bonus as it’s also called), keep in mind that insurers will consider your driving record and even your claims history with other insurers when they calculate your premium.
For the uninitiated, a no-claim discount is (was) a discount on your premium if you don’t make a claim during an insured period – like a reward for being a safe driver. Your discount would increase each year you don’t claim and is capped at a certain number of years. But as NCDs take their final bow, you can try comparing and switching car insurance to try and lower your premiums.
Are learner drivers covered under third-party property, fire and theft car insurance?
Yes, anyone with a valid driver’s licence can be covered under a third-party property, fire and theft car insurance policy. As a learner driver, you can take out a car insurance policy if you own the vehicle you’re driving. Some insurers will require an insured and licensed driver to sit in the front passenger seat while a learner driver is behind the wheel. Or if you’re the parent of a learner driver who’ll be learning in your car, you can add them to your existing car insurance policy as an additional driver.
Due to the higher risk, insurance companies may charge a higher premium when it comes to insuring younger drivers. In some cases, there might also be an additional excess if a younger driver is involved in an accident.
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