• Home
  • Car
  • Third Party Fire and Theft Car Insurance

Third Party Fire and Theft Car Insurance

Keep reading to learn more about Third Party Fire & Theft insurance, including how it works, what's typically included in a standard policy, and some tips for finding suitable cover with iSelect.
Couple talking as they get into their car

*iSelect does not compare all car insurers or policies in the market and not all policies or special offers are available at all times, through all channels or in all areas. Not all policies available from our providers are compared by iSelect and due to commercial arrangements and customer circumstances, not all policies compared by iSelect are available to all customers. Learn more.

Compare Car Insurance Policies

Save time and effort by comparing a range of car insurance quotes with iSelect*


I don't know my registration number
Did you know that entering your car registration will save you time and help us make sure your quote is for the right vehicle

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)






Third-Party Property Damage






Third-Party Fire and Theft











It is important that you consider the insurer’s Product Disclosure Statement before purchasing a policy

I have CTP, why do I need to consider more insurance?

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.

What’s the difference between Third Party Property and Third Party Fire and Theft insurance?

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.

What else does Third Party Fire and Theft usually cover?

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:

  • Damage to your car caused by an uninsured driver
  • Car hire if your car is stolen
  • Towing costs (to the nearest safe place or repairer)
  • Not all insurers cover all these additional items and limits will often apply.

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.

Author Paul Maric

Paul Maric, Managing Editor and co-founder of CarExpert.

How much does Third Party Fire and Theft Car Insurance cost?

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:

  • Age of driver: Younger, inexperienced drivers tend to attract higher premiums.
  • Where you live: Some areas are statistically higher risk for theft.
  • What you use the car for: It’s may be cheaper to insure a car for private use rather than one which you’re using for business purposes.
  • Model of Car: An expensive, high-performance vehicle is likely to attract a higher cost than a less powerful model.

How can I keep my premium down?

There are some things you may be able to do to help reduce your premium. Here are some simple steps you could take:

  1. Don’t modify your car
  2. Park your car in a garage overnight
  3. Maintain a safe, no-claim driving record
  4. Drive less than the average person
  5. Install a car alarm or immobiliser
  6. Pay your premium annually instead of monthly
  7. Compare policies online with iSelect*

Be Honest

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.

Is Third Party Fire and Theft suitable for me?

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.

How do I find a Third Party Fire and Theft insurance policy?

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

Paul Maric

Endorsed by:
Paul Maric

Managing Editor and co-founder of CarExpert

Paul Maric is a highly acclaimed motoring journalist and the co-founder and managing editor of CarExpert.com.au. With over 15 years of experience in the automotive industry, Paul's knowledge is bolstered by a degree in mechanical engineering.