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Third party property damage insurance

Compare car insurance policies and learn more about third party property damage insurance. Discover which policy may best suit your needs.

Alex Ritchie

Personal Finance Editor

Content updated

27 Apr, 2024

Product data updated

27 Apr, 2024

Tip

Please note that the comparison table on this page providers general car insurance product comparisons for informational purposes only and does not specifically display third party property damage insurance policies. Consult with insurance providers directly for detailed information on specific coverage needs.

What is third party property damage

Third party property insurance is a type of car insurance coverage that provides protection against financial liability for damage to someone else's vehicle or property in the event of an accident for which you are at fault.

This type of insurance does not cover damage to your own property or vehicle; it solely covers the costs incurred to another party's property. It's a mandatory requirement for all registered vehicles in Australia to have at least a minimum level of third party liability insurance.

Is third party property damage the same as CTP insurance?

Third party property damage is one of four available car insurance options in Australia. It is entirely separate to CTP insurance, or comprehensive car insurance, for example.

The types of car insurance available in Australia and what they cover include:

Insurance Type	Description
Third Party Property Damage	Offers coverage for damage your vehicle causes to another person's property. Some policies may cover your car if hit by an uninsured driver, excluding coverage if you're at fault.
Compulsory Third Party (CTP)	CTP insurance is mandatory in Australia. Also known as a 'green slip,' it covers injuries to others if you're at fault, with optional extra coverage for personal injuries.
Third Party Property, Fire and Theft	An extension of third party coverage, it also includes protection against fire and theft damage. Provides limited coverage for injuries or damage from accidents caused by others, along with additional benefits like coverage for a stolen car and towing.
Comprehensive Car Insurance	The most extensive and costly insurance option, covering injuries and damages of both you and others in an accident, and the impact of extreme weather events, such as hail damage. Additional features include coverage for personal items, window glass breakage, emergency repairs, and new car replacement.

It's important to note that coverage can differ between insurance providers, and it's worthwhile carefully reviewing policy details from a range of options to understand the extent of coverage provided.

What does third party property damage cover?

A third-party property damage policy will typically only cover damage to other cars and property. This can be incredibly helpful in the event that you are in an accident at which you are at fault, and you cause damages that you cannot afford to repay out of pocket.

Third party property damage insurance in Australia typically includes:

Property damage coverage: Covers the cost of repairing or replacing the other party's vehicle or property that you may damage in an accident.
Liability protection: Helps cover your legal liability for the damage caused to another person's property.
Uninsured driver protection: Some policies may include coverage for damage to your car caused by an uninsured driver, although coverage may vary.

For example, say that you were involved in an accident where you were at fault, and you caused major damage to a luxury vehicle, like a Ferrari. If you only had CTP insurance, it is likely that you may need to cover these damages from your own savings. And for the everyday Australian, this is a cost that is out of reach. However, with third party property damage cover, the car insurance provider may pay out your claim

You may be able to add extra coverage to a third-party policy, such as covering car hire after a theft, or loss of personal items kept in the car.

Does third party insurance cover property damage?

What is the third party property damage limit?

Does third party property damage cover break-ins?

How much is third party property damage insurance?

The premium charged for any insurance policy will depend on a range of factors, from the driver's age, the location and details of where the vehicle is parked and any excess you pay, to the driving history of the applicant and details of any past claims or events where they were at fault. This is why it is worthwhile comapring a range of insurance quotes before you sign on the dotted line to ensure you have the best policy for your personal and financial situation.

That being said, the general cost of third party property damage insurance is roughly a few hundred dollars a year.

Third party property damage cover can be a competitive insurance option for those who are trying to keep their insurance costs low. It is not as expensive as the highest level of coverage offered by comprehensive insurance, and you are still able to protect your back pocket in the event you damage another’s property.

However, it’s worth keeping in mind that while third party property damage cover is more affordable than comprehensive car insurance, you will need to pay for any damages to your own vehicle out-of-pocket. This includes covering the cost of break-ins or theft, as well as fire and other natural events.

Alex Ritchie

Personal Finance Editor

Alex Ritchie is a Personal Finance Writer and Editor at RateCity, and has been writing about Australian finance for over six years. Her expertise and passion covers loans, credit, superannuation, and closing the gender pay gap, and she aims to help young Aussies to overcome their financial apathy. Alongside RateCity, Alex has been published in numerous publications, including Australia's Money Magazine, Business Insider, Lifehacker Australia, and in health via NPS MedicineWise.

This article was reviewed by Personal Finance Editor Peter Terlato before it was published as part of RateCity's Fact Check process.

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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, target market determination fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

What is third party property damage

What does third party property damage cover?

Third party property damage insurance in Australia typically includes:

Property damage coverage: Covers the cost of repairing or replacing the other party's vehicle or property that you may damage in an accident.
Liability protection: Helps cover your legal liability for the damage caused to another person's property.
Uninsured driver protection: Some policies may include coverage for damage to your car caused by an uninsured driver, although coverage may vary.

You may be able to add extra coverage to a third-party policy, such as covering car hire after a theft, or loss of personal items kept in the car.

How much is third party property damage insurance?

That being said, the general cost of third party property damage insurance is roughly a few hundred dollars a year.

Third party property damage insurance

On this page

What is third party property damage

Is third party property damage the same as CTP insurance?

What does third party property damage cover?

Does third party insurance cover property damage?

What is the third party property damage limit?

Does third party property damage cover break-ins?

How much is third party property damage insurance?

Share this page

Did you find this page helpful?

On this page

What is third party property damage

Is third party property damage the same as CTP insurance?

What does third party property damage cover?

Does third party insurance cover property damage?

What is the third party property damage limit?

Does third party property damage cover break-ins?

How much is third party property damage insurance?

Share this page

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