Compare Third-Party Fire and Theft Car Insurance

Most of it’s in the name! Third-party fire and theft will cover you for property damage you cause to cars or properties belonging to other people – also known as third parties – as well as for fire and theft to your own vehicle.

But how exactly does it stack up compared to other insurance types? Take a look at the table below to get a decent idea.

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
Comprehensive

As you can see, third-party fire and theft insurance won’t (typically) cover the repair costs of your car if it gets beaten up in a car accident, but it will cover you against a decent number of risks.

As the name suggests, third-party property insurance generally only covers other people’s property. Third-party fire and theft not only does this, but also helps cover you if your car is stolen, or if it’s damaged due to fire. As a result, third-party fire and theft insurance can be more expensive.

Coverage can differ between policies, so it’s always a good idea to review the product disclosure statement (PDS).

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 damage. It only covers you for personal injury or death if your car is involved in an accident. But crucially, it 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.

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.

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.

Yes. Most insurers will ask you to pay an out-of-pocket fee – also known as a car insurance excess – when you make a claim on third-party property insurance or third-party fire and theft insurance. This fee 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)
• 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 if you claim for a ‘no-fault accident’ – an accident that was caused entirely by another driver or person. 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.

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
• whether 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’ll 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.

In the end, this comes down to what you want – your needs, your budget, and the level of 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 third-party property.

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? 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?

While third-party fire and theft doesn’t cover as much as comprehensive cover, it can give you a sense of added peace of mind, which could be worth the extra money.

A no-claims discount or no-claims bonus is a discount on your premium if you don’t make a claim during an insured period. It’s like a reward for being a safe driver. Your discount increases for each year you don’t claim and is capped at a certain number of years.¹For more information, see moneysmart.gov.au – No claim bonus on car insurance Not too bad, hey!

Well, it’s unlikely you’ll be able to get a no-claims bonus with a third-party fire and theft car insurance policy. Unfortunately, this feature usually only comes with comprehensive car insurance policies. If you’re thinking of upgrading your level of cover to get a no-claims bonus, keep in mind that insurers can still consider your driving record and even your claims history with other insurers.

Yes – anyone with a valid driver’s licence can be covered under third-party fire and theft car insurance. Because let’s be honest, an L-plater who’s a little wet behind the ears could use a bit of assurance when they’re behind the wheel.

There are a couple of ways to go about getting insurance for an L-plater:

• As a learner driver yourself, you can take out a car insurance policy if you own the vehicle you’re driving.
• If your child is an L-plater and will be driving your car, you can choose to add them to your existing car insurance policy.

For the latter, some insurers might need you to add the L-plater to your existing policy as an additional driver. Others might not – they’ll just require an insured, licenced driver to sit in the front passenger seat while they’re driving.

There are a couple of other things worth remembering. 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.