Third Party Car Insurance

Buying a new car is an exciting prospect, but your research doesn’t end when you finally select a brand and model. The next task is to insure your car – and in particular, you must apply for third party car insurance.
All car owners in Australia are required to pay for compulsory third party car insurance.

Compulsory third party, also known as CTP or a “Green Slip” in NSW, insures you or anyone driving your car against liability for death or injuries caused by a car accident where you are at fault. It covers passengers of all vehicles involved in the accident, pedestrians and cyclists.

It does not, however, cover injuries caused to you or the driver of your car if you are at fault. It also does not cover damage caused by your car to a car or property owned by a third party in the event of an accident you may have caused.

For this you’ll need third party insurance, which covers damage you cause to other cars or property and therefore provides additional peace of mind. When you consider that even a small bump to another car can cause thousands of dollars in damage, it’s easy to see why third party insurance is important.

In all states except New South Wales, Queensland and the ACT, the state government includes compulsory third party insurance as part of your registration fee. In New South Wales, you must organise your own insurance before you register your car, while in Queensland you nominate your preferred insurance company when you pay your registration.

However, third party car insurance does not cover any damage caused to your car where you are at fault, and it does not cover theft of your car either. That’s where comprehensive car insurance comes in – it can cover just about everything, including accident cover irrespective of who is at fault, theft and fire damage, and helpful extras such as towing after an accident and a replacement car while yours is being repaired, depending on the car insurance provider and policy.

When researching car insurance, a good place to start is comparing car insurance premiums and benefits. This will help you find the car insurance that’s right for you.

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Learn more about car insurance

Does insurance cover a stolen car if keys were in the car?

A car insurance policy that covers the theft of your car, such as third party fire and theft insurance, usually covers a stolen car, even if the keys were in the car’s ignition.

However, your insurer may deny the claim if you live in an area where there have been several car robberies reported recently. They will see you leaving the keys in the car as a case of negligence. In such cases, your insurance provider may even expect you to have installed anti-theft security measures in your car. 

You may need to confirm whether or not you left your keys in your car, and if they had been stolen or misplaced, before filing your car insurance claim. The loss or theft of your car keys may be covered by a comprehensive car insurance policy, but usually as an optional item.

If you can confirm that your car keys were stolen, mention this in your claim as this will help establish that your car was not stolen as a result of your negligence.