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When buying a Car Insurance policy, it’s always worth making sure you get a policy that covers the things you want insured. This article is particularly about Third Party Fire and Theft (TPF&T) insurance, and we’ll go into that in more detail.
Before we start, the table below shows a broad outline of what different insurance policies can cover. Remember, because you must have Compulsory Third Party (CTP) insurance, you will be covered for injuries to other people under your CTP insurance.
Insurance Type |
Injuries to other people |
Damage to other people’s car or property |
Damage caused by fire or theft |
Accidental damage to your own car |
Compulsory Third Party (CTP) |
Yes |
No |
No |
No |
Third-Party Property Damage |
No |
Yes |
No |
No |
Third-Party Fire and Theft |
No |
Yes |
Yes |
No |
Comprehensive |
No |
Yes |
Yes |
Yes |
It is important that you consider the insurer’s Product Disclosure Statement before purchasing a policy
You said you have Compulsory Third Party (CTP) insurance (because you have to) so you might be tempted to think, “Why do I need to consider Third Party Fire and Theft Car Insurance?” (Depending on where you live, CTP is either included in your car rego, or you purchase it through a private insurer before you can register your car). It’s important to note CTP doesn’t cover property, it only covers you for personal injury or death if your car is involved in an accident. It won’t, for example, cover the cost of the new Lamborghini you just ran into, or any property you’ve damaged. You’ll have to pay for that damage all by yourself.
Well, Third Party Fire and Theft is can be more expensive because it provides more coverage than a third party property policy. Third Party Fire and Theft, as the name suggests, helps cover you if your car is stolen and not recovered as well as if it is damaged due to fire. Third Party Property generally only covers other people’s property. It is however important to review the Product Disclosure Statement because coverage can differ between policies.
Third Party Fire and Theft insurance (TPF&T) helps cover you for damage to another person’s vehicle or property (that’s the ‘Third Party’ bit), in the event of an accident that’s your fault. It also helps cover you for loss or damage to your car resulting from a fire, or if it’s stolen. Many car insurers may also provide additional cover, including:
So if one is particularly important to you, make sure you check the Product Disclosure Statement before you decide on a policy.
Helpful Tip:If you’ve ever had your car stolen or broken into, it’s a scary and frustrating experience. What can be scarier still is the idea of having to dig into your savings to pay for a new car if you’re un-insured! Having a Car Insurance policy like Third Party Fire & Theft can’t stop your car being stolen or catching fire, but it could help cover the costs to repair or replace it if either of those two things happen. It’s important to remember however, that if your car’s damaged by something other than fire or theft, then you won’t be covered for the costs to repair or replace your car. Only a comprehensive policy can provide that cover.
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As with all insurance premiums, the cost of Third Party Fire and Theft Car Insurance depends on a few factors. So it might be worth comparing premiums across a few insurers to get an idea of the cost and coverage options. Some of the main variables affecting premiums are:
There are some things you may be able to do to help reduce your premium. Here are some simple steps you could take:
It’s important that you only tell the truth to your insurer about these things. If an accident were to happen and it was discovered that you hadn’t given the correct information then the insurer may reduce or decline a claim. The end result could be a lot more expensive than being truthful and paying the extra dollars when you take out the policy.
While it doesn’t cover everything, it might cover enough for your situation (see the table above). Third Party Fire and Theft can be cheaper than Comprehensive, and a bit more expensive than Third Party Property insurance. Before deciding, ask yourself a few questions. 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.
Once you’ve taken all that information into account, it’s time to find an insurer that offers a policy you like. At iSelect we’ve partnered with a range of insurers to make it easy to compare Car Insurance policies. Go online to compare today*.
Last updated: 19/08/2021