Compare Third Party Property Insurance^*

Third Party Property Insurance can cover damage that is caused to someone else’s property while driving your car (up to policy limits). In terms of cover, it’s different from the legal minimum insurance required in Australia, which is Compulsory Third Party (CTP) also known as a ‘green slip’ in NSW. CTP, as the name suggests, is compulsory, and you wouldn’t be able to register your car without it. 

In most states, your registration fee usually includes the cost of your CTP. But if you live in Queensland, New South Wales, or the ACT, you typically need to choose your CTP insurance provider yourself either before or as part of your  registration renewal. 

CTP only covers drivers who are liable for personal injury to another person in a car accident.⁶ This can include other drivers, passengers, cyclists and pedestrians. 

Third Party Property Insurance typically covers other people’s property damaged by the insured driver in a car accident.⁷

While there are limits to how much can be claimed, that could be someone else’s car, house, shop, caravan, boat, bicycle or property in general. (And remember: the other car could be a brand-new Ferrari, so having Third Party Property Insurance could save you a fortune!) 

It’s also important to know that Third Party Property Insurance will generally not cover damage to your own car if an accident occurs. So, make sure you consider your car’s value when choosing a policy.  

You may also want to ask your insurer about ‘uninsured motorist cover’ which can partially protect you against damage to your car at a limited amount if an uninsured driver is at fault.⁸ 

As with all insurance policies, there are other exclusions you should be aware of when taking out Third Party Property Insurance. These are spelt out in detail in the product disclosure statement with each policy—this can be quite a list, so be sure to read them carefully. 

Some examples of exclusions on a third party policy may include; 

• Damage to your vehicle: Third-party property insurance won’t cover damage to your own car in the event of an accident. It also won’t cover any of your property if it’s stolen from your car or damaged in an accident.
• Under the influence: Third-party property insurance won’t cover you driving while breaking the law, which includes being under the influence of drugs or over the legal alcohol limit. Unsurprisingly, this applies to all car insurance types, even comprehensive.
• Tyre maintenance: If you’re driving on damaged tyres or tyres that don’t meet the minimum legal tread limit in Australia (1.5mm),⁹ an insurer would be unlikely to cover your claim if you had an accident.
• Application purposes: You typically won’t be covered if you use your car for any purpose you didn’t list on your insurance application. So hiring out your car, using it as rideshare or taxi, or using it as a race car (even as an amateur), all require you to apply for special cover. 
• Age of driver: If you’ve saved money by restricting the drivers on your policy to be over a certain age,¹⁰ you won’t be covered if someone younger is driving your car and has an accident.
• Finally, if you don’t pay your premium or renewal and then try to claim outside of any period of grace, you’re generally not insured. The Product Disclosure Statement (PDS)that comes with your policy will spell out the whole list of exclusions.  

Third-party property insurance could be an option worth considering if you’re more concerned about covering repairs on someone else’s car rather than your own. (If you have a cheaper car, for example, and you don’t think it would be worth the cost of repairs.)   

But even if you do have a less-than-luxurious car, there are times that Comprehensive Insurance or third party fire and theft could still be a more appropriate choice. 

To get a better idea of whether third party property is suitable for you, here are some questions to consider: 

• Is my car at risk of a break-in? 
• Do I live in a high-crime area? 
• Can I afford repairs on another person’s car? 
• Can I afford paying for any other damage to someone else’s property? 
• Can I afford to repair or replace my own car? If not, can I get around without a car until I can replace it?

If you live in an area with a lot of car theft, you may want to consider Third Party Fire and Theft Insurance.  

Unlike Third Party Property Insurance, Third Party Fire and Theft covers theft of your vehicle and from your vehicle. Likewise, if your car is your livelihood, and you can’t afford to replace it, Comprehensive Insurance may be an option. 

Third Party Property can be a good fit if you can afford to repair or replace your car if necessary or can manage to get around without it for a while. The table below shows a broad outline of what each type of insurance covers to help you decide which policy to take out. 

Generally, no. If you’d like to be covered for towing, you might want to consider a policy such as Comprehensive Car Insurance or Third Party Fire and Theft.¹¹ 

Many providers will offer annual, monthly, or fortnightly payment options, with annual payments typically being the most cost-effective.¹² 

Typically, no, however some policies may cover the damage to your car if it is caused by an uninsured driver. In this case, you could be covered up to $5,000.¹³