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A guide to Third Party Property Damage insurance
Updated 12 Oct 2026
David Koch explains Third Party cover
Here’s what you will and won’t be covered for in the event of an accident with TPPD insurance.
David Koch
Economic Director
Video Transcript
Choosing a car insurance policy should not leave you feeling burnt out, or like your wheels are spinning. So Compare the Market’s here to help steer you in the right direction. If you’re thinking about Third Party cover, here’s what you need to know. As the name suggests, third-party property damage only covers the cost of the damage done to another person’s property.
That means, in the event of an accident which is not covered by the other driver’s policy or another incident causing damage to your vehicle, you will shoulder the cost for repairing or replacing your car. Depending on your circumstances, TPPD could be a cost-effective choice but there are a number of things to consider before hitting the ignition. These are Compare the Market’s top tips: Understand the replacement cost of your vehicle. If you’re biggest concern is damaging someone else’s property, and you’re comfortable replacing or repairing your own car, this could be a good option for you.
Next, look at the risk. If you’re parking your car in a high-theft area, you could consider third party fire and theft insurance. This product has the features of TPPD with additional cover for damage to your vehicle from theft or fire events. Ultimately, cost is often the most attractive thing about third party cover.
It’s typically the cheapest of the non-compulsory car insurance options, but the consequence could be a big outlay should anything happen to your vehicle. If that worries you and you’re willing to pay a bit more now for a higher level of cover, consider taking out a comprehensive policy instead. But when it comes to car insurance, shopping around is usually the best way to save. You can use Compare the Market to compare different policies and different levels of cover to find one that suits your needs and budget.
So rev your virtual engine and get comparing now, with Compare the Market.
What is Third Party Property Damage car insurance and what does it cover?
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. This applies to all types of car insurance.
What’s excluded from Third Party Property Damage insurance?
Third Party Property Damage insurance 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.
Is Third Party Property Damage the same thing as Compulsory Third Party insurance?
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 NSW, Qld and SA allow you to choose your CTP insurer.
Is Third Party Property Damage the best car insurance product?
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 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).
How much is Third Party Property Damage car insurance?
The average quote price for Third Party Property Damage car insurance ranges from $366 for drivers in Tasmania to $687 for drivers in Victoria a year, according to quote data from Compare the Market.1 Average prices vary by state.
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.
Do I have to pay an excess with Third Party Property Damage insurance?
Yes, it’s standard for policyholders 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 aged under 25 or not listed on the policy, you may need to pay a young driver or an unlisted driver excess as well.
How can I get cheap Third Party Property Damage car insurance?
Accessing discounts for your first year of cover, adding a driver age restriction and paying your premium annually are all ways that could reduce your premium.
Another way to potentially lower your premiums is to use an online comparison tool to compare your options. This is a quick, easy way to search for cover that best suits your needs and budget.
What is the best Third Party Property Damage car insurance policy?
There’s no best Third Party Property Damage car insurance policy for everyone. For this reason, it’s important to shop around, compare 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 car insurance to cover for your needs.
- The premiums and policy excess suit your budget.
- The insurance company provides the customer service you’re looking for.
How to compare Australian Third Party Property Damage car insurance quotes online
To compare Third Party Property Damage policies, simply select it from the list of car insurance options in the online tool journey. It only takes minutes to get car insurance quotes from our partner insurers through our car insurance comparison service.
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.
Meet our car insurance expert, Adrian Taylor
As a General Insurance expert with over 13 years’ experience in financial services, Adrian Taylor is passionate about demystifying car insurance for consumers, so they have a better understanding of what they’re covered for. Adrian’s goal is to make more information available from more insurers, to make it easier to compare and save.
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1 These figures represent the average annual indicative costs to insure a car in each state for customers who compared and purchased Third Party Property Damage car insurance through Compare the Market during the period 1 July 2025 – 30 June 2026. Indicative premium data includes stamp duty and GST. Figures have been rounded up to the nearest dollar.