Third Party Property Damage car insurance

Third Party Property Damage is a car insurance product that covers your liability for damage you cause to other people’s vehicles and property in a car accident. It’s the most basic policy you can purchase from the optional types of car insurance, but it’s also the cheapest.

For full details on inclusions, exclusions, terms and conditions, always read the relevant Product Disclosure Statement (PDS) policy document.

Third Party Property Damage insurance typically won’t cover damages to your vehicle, unless your insurer specifies that they cover damages caused by an uninsured driver in a car accident. It also won’t cover theft of your vehicle or damages from an attempted theft.

Optional extras such as windscreen cover and accident hire car cover typically aren’t available on Third Party Property Damage car insurance policies either. These extras can only be added to higher levels of cover.

No, Third Party Property Damage isn’t the same as Compulsory Third Party (CTP) insurance. Only CTP insurance or equivalent cover (e.g. Green Slips in NSW) is mandatory for all registered vehicles in Australia.

Third Party Property Damage covers damage you cause to other people’s vehicles and property in a car accident. Compulsory Third Party (CTP) insurance provides legal liability cover if people are injured or die in a motor accident you cause.

While you have a choice of insurers for Third Party Property Damage across Australia, only some states allow you to choose your CTP insurer.

There’s no single best car insurance product for everyone – it’ll depend on your circumstances and your priorities for cover.

If your main priority is to cover damage you cause to other vehicles and property in a car accident, you may consider Third Party Property Damage insurance. It’s also a more affordable option than comprehensive car insurance or Third Party Fire and Theft.

For more information on whether a car insurance product suits your circumstances, read the Target Market Determination (TMD).

The cost of your car insurance premiums will vary depending on several factors, including:

• The make and model of your car
• The car’s age
• Your age and gender
• Your insurance and driving history
• Your address
• Any aftermarket upgrades.

Your insurer will typically ask you to pay a basic excess when you make an insurance claim on your Third Party Property Damage policy. The basic excess is the amount you agreed to pay on a claim when you purchased or renewed your car insurance policy.

Depending on the circumstances of the incident, you might need to pay an additional excess on top of the basic one. For example, if the driver of your car when the accident occurred was under 25 or not listed on the policy, you may need to pay a young driver or an unlisted driver excess as well.

Third Party Property Damage policies are already some of the cheapest car insurance types you can purchase. However, there are still ways you could reduce the price of your premiums, including:

• Accessing discounts on your first year of cover when you purchase your policy online
• Adding a driver age restriction to your policy
• Paying your premiums annually instead of in monthly instalments.

You could also lower your premiums by increasing your excess. Before adjusting your excess, consider whether you could afford to pay a higher excess if you need to claim.

The best Third Party Property Damage car insurance policy for you might not suit your neighbour. For this reason, it’s important to shop around and see if you can find one that suits your circumstances.

When purchasing a Third Party Property Damage policy, it’s worth considering if:

• The policy offers the right amount of coverage for your needs
• The premiums and policy excess suit your budget
• The insurance company provides the customer service you’re looking for.

It only takes minutes to get car insurance quotes from several insurers through our car insurance comparison service. To compare Third Party Property Damage policies, simply select it from the list of car insurance options in the journey.

Here are some other details you’ll need to enter to get your car insurance quote:

• Basic car details including your vehicle’s make and model. Entering your car registration details can pre-fill this information for you.
• Advanced car details like how your vehicle is used and whether it has hail damage or modifications.
• Personal details such as your name, date of birth and location.