Third Party Fire and Theft car insurance

With Third Party Fire and Theft car insurance, you’re typically covered for damage your vehicle causes to other people’s property, as well as damage to your car caused by fire or theft.

It generally doesn’t cover other instances of accidental damage to your own car, unless it’s caused by an uninsured driver.

Third Party Fire and Theft car insurance isn’t the cheapest type of car insurance around, but it’s also not the most expensive. Here’s how it compares to comprehensive car insurance and Third Party Property Damage insurance.

Legal liability for physical injuries you cause to other people in a car accident is covered by Compulsory Third Party (CTP) insurance, which is called Green Slip insurance in New South Wales (NSW) and Motor Accident Insurance in the ACT. CTP insurance is generally included in your vehicle’s registration, except for NSW residents who must purchase Green Slip insurance separately.

Car insurance providers generally have their own preferred repairers for fixing your vehicle, and any work they do may also have a lifetime guarantee from your provider. If you have a Third Party Fire and Theft policy and your car is damaged by fire or theft, your provider won’t typically give you a choice of repairer. However, some may offer you this choice as an optional extra, which is why it’s important to read the PDS before purchasing a policy.

Learner drivers may be covered by a Third Party Fire and Theft policy, provided the licensed driver accompanies them while they’re driving. Some insurers may require any learner driver who uses the covered vehicle to be listed on the policy. However, if the learner is responsible for an incident you make a claim for, you’ll typically incur the young or inexperienced driver excess on top of the standard excess payment.

Roadside assistance and emergency repairs typically aren’t covered by Third Party Fire and Theft car insurance; however, many car insurance providers will offer roadside assistance services as an optional extra. You might choose to buy roadside assistance separately, either with your current car insurance policy or from a different provider altogether.

Third party car insurance policies (like Third Party Fire and Theft) typically only cover damage to your vehicle in limited circumstances. For example, if an uninsured driver causes damage to your vehicle, you can make a claim with your provider.

Most car insurance providers allow customers to claim for this scenario possibly without incurring an excess, so long as you can provide the name, contact information and licence number of the uninsured driver responsible.

Depending on when you take out your policy and what coverage is on offer, your aftermarket upgrades can be covered. If you’re taking out a new policy for a recently purchased ride or switching providers, you can list the aftermarket upgrades when providing details about your vehicle. Any extra parts and upgrades will be counted in the cost of your insurance.

If you already have insurance and modify your car, you won’t be covered unless you contact your provider to advise them of the changes you’ve made and upgrade your cover (if required). Extending your policy to cover aftermarket upgrades may result in the cost of your insurance increasing, but if you don’t notify your insurance provider and your vehicle is damaged, you’ll likely have to pay the price for fixing or replacing aftermarket parts yourself.

Similar to other types of car insurance, your Third Party Fire and Theft premium is calculated based on your individual circumstances, including factors like:

• Your age. Young drivers (under the age of 25) tend to pay more for their car insurance.
• Your address. If you live in a suburb with high rates of car theft, for example, you might be at an increased risk of making a claim. This goes for flood plains and bushfire-prone locations, too.
• Your policy. The level of cover you choose will affect the price you pay, as well as what you’re covered for. You might also have the option of adding further cover at an extra cost.
• Your car. The make and model, value, age, condition and even the colour of your car all play a part in how much it costs to insure it.

There are some steps you can take to reduce the price of your car insurance premiums, though these can differ between insurance providers and plans. These may include:

• Restricting the age of drivers. Restricting the age of your car’s drivers (e.g. only people over the age of 18, 21 or 25) can reduce the cost of your insurance.
• Increasing your excess. Choosing a higher excess will cost you more if you need to claim but will reduce your regular premium payments. Make sure the excess is still an affordable amount in case you need to claim.
• Looking out for discounts. Some insurance companies offer discounts if you combine your car insurance with an existing insurance product like home and contents cover, while others provide discounts for purchasing insurance online.