What’s the difference between third party car insurance and comprehensive car insurance?

Third party car insurance only covers damage you cause to someone else’s vehicle and property. On the other hand, comprehensive car insurance provides cover for a wider range of insured events, including loss or damage to your own car in an accident (regardless of who’s at fault) and car damage from theft and weather events like fire, hail, and storms. Comprehensive car insurance offers additional benefits and features that are not available with any other level of cover, including new for old replacement if your car is written off in an accident or stolen or the choice of replacement for market value or agreed value.

What’s the difference between third party car insurance and CTP?

Third party car insurance only covers the policyholder for the cost of damage they cause to other people's vehicles or property in an accident. It does not cover your liability for injuries to third parties. On the other hand, Compulsory Third Party Insurance (CTP), also known as Green Slip Insurance in New South Wales, covers your liability and that of anyone else who drives your vehicle for third party injuries or death in a crash involving your vehicle. It does not cover accidental damage to other people's property.

Does third party car insurance have an excess?

Yes, you may have to pay an excess (an out-of-pocket sum) if you claim under your third party car insurance policy. It will depend on the circumstances of the incident and which driver was at fault.

Does third party car insurance cover your car if you’re not at fault?

No, third-party car insurance typically won’t cover damage or loss to your car if another driver is at fault. However, there may be limited coverage in cases where the other driver is uninsured and the accident is deemed to be no-fault, as outlined by [Budget Direct](https://www.budgetdirect.com.au/car-insurance/car-insurance-faqs/types-of-car-insurance.html).

Compare Third Party Car Insurance in Australia

Compare third party property only car insurance

The table below shows a selection of car insurance providers offering third party property policies to Australian drivers, with an overview of selected features and discounts. The table is sorted alphabetically based on the provider name. We are not making a recommendation about any particular product. Be sure to check with the provider and read the Product Disclosure Statement (PDS) for exclusions, limits and sub-limits that may apply.

Insurer	AAMI
Generally covered for	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000
Pay monthly at no extra cost	No
Discounts or incentives available	$20 off your first year’s premium for signing up online
Insurer	ahm
Generally covered for	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $3,000
Pay monthly at no extra cost	No
Discounts or incentives available	Eligible ahm and Medibank health members get 10% off premiums
Insurer	Allianz
Generally covered for	Legal liability up to $20 million for damaging other people’s car or property
Pay monthly at no extra cost	No
Discounts or incentives available	None listed
Insurer	ANZ
Generally covered for	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000
Pay monthly at no extra cost	Yes
Discounts or incentives available	None listed
Insurer	APIA
Generally covered for	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000
Pay monthly at no extra cost	No
Discounts or incentives available	None listed
Insurer	Australian Seniors
Generally covered for	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $3,000
Pay monthly at no extra cost	No
Discounts or incentives available	5% off your first year’s premium for Seniors Card discount holders Go in the draw to win $10,000 when you buy a policy by 31/01/2025
Insurer	Bingle
Generally covered for	Legal liability up to $20 million for damaging other people’s car or property Excess waived in the event of damage to your vehicle by uninsured drivers at fault (T&Cs apply)
Pay monthly at no extra cost	No
Discounts or incentives available	None listed
Insurer	Budget Direct
Generally covered for	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000
Pay monthly at no extra cost	No
Discounts or incentives available	15% off your first year’s premium for buying a policy online
Insurer	CBA
Generally covered for	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000
Pay monthly at no extra cost	Yes
Discounts or incentives available	Up to 10% off your first year’s premium for buying a policy online
Insurer	Coles
Generally covered for	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000
Pay monthly at no extra cost	No
Discounts or incentives available	Get $50 off a Coles shop when you take out a new policy 15% off your first year’s premium for buying a policy online
Insurer	GIO
Generally covered for	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000
Pay monthly at no extra cost	No
Discounts or incentives available	None listed
Insurer	ING
Generally covered for	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000
Pay monthly at no extra cost	No
Discounts or incentives available	15% off for your first year’s premium for buying a policy online
Insurer	NAB
Generally covered for	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000
Pay monthly at no extra cost	Yes
Discounts or incentives available	Named driver discount off first year’s premium for buying a policy online
Insurer	NRMA
Generally covered for	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000
Pay monthly at no extra cost	No
Discounts or incentives available	Up to 10% off your first year’s premium for buying a policy online
Insurer	Qantas
Generally covered for	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000
Pay monthly at no extra cost	No
Discounts or incentives available	Earn up to 8,000 Qantas Points when you buy a policy
Insurer	RACQ
Generally covered for	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000
Pay monthly at no extra cost	No
Discounts or incentives available	None listed
Insurer	RACV
Generally covered for	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000
Pay monthly at no extra cost	No
Discounts or incentives available	None listed
Insurer	Suncorp Bank
Generally covered for	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000
Pay monthly at no extra cost	No
Discounts or incentives available	None listed
Insurer	Westpac
Generally covered for	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000
Pay monthly at no extra cost	Yes
Discounts or incentives available	$150 eGift card when you buy a policy with a minimum premium of $750 before 2/12/2024
Insurer	Woolworths
Generally covered for	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $3,000
Pay monthly at no extra cost	No
Discounts or incentives available	10% off an in-store grocery shop once a month
Insurer	Youi
Generally covered for	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000
Pay monthly at no extra cost	No
Discounts or incentives available	None listed

Insurer	Generally covered for	Pay monthly at no extra cost	Discounts or incentives available
AAMI	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000	No	$20 off your first year’s premium for signing up online
ahm	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $3,000	No	Eligible ahm and Medibank health members get 10% off premiums
Allianz	Legal liability up to $20 million for damaging other people’s car or property	No	None listed
ANZ	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000	Yes	None listed
APIA	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000	No	None listed
Australian Seniors	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $3,000	No	5% off your first year’s premium for Seniors Card discount holders Go in the draw to win $10,000 when you buy a policy by 31/01/2025
Bingle	Legal liability up to $20 million for damaging other people’s car or property Excess waived in the event of damage to your vehicle by uninsured drivers at fault (T&Cs apply)	No	None listed
Budget Direct	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000	No	15% off your first year’s premium for buying a policy online
CBA	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000	Yes	Up to 10% off your first year’s premium for buying a policy online
Coles	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000	No	Get $50 off a Coles shop when you take out a new policy 15% off your first year’s premium for buying a policy online
GIO	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000	No	None listed
ING	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000	No	15% off for your first year’s premium for buying a policy online
NAB	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000	Yes	Named driver discount off first year’s premium for buying a policy online
NRMA	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000	No	Up to 10% off your first year’s premium for buying a policy online
Qantas	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000	No	Earn up to 8,000 Qantas Points when you buy a policy
RACQ	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000	No	None listed
RACV	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000	No	None listed
Suncorp Bank	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000	No	None listed
Westpac	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000	Yes	$150 eGift card when you buy a policy with a minimum premium of $750 before 2/12/2024
Woolworths	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $3,000	No	10% off an in-store grocery shop once a month
Youi	Legal liability up to $20 million for damaging other people’s car or property Damage to your vehicle by uninsured drivers at fault up to $5,000	No	None listed

Please note this is an overview of what each of these providers shown offers based on a selection of key features advertised. It’s not a full list of what the policies offer or exclude. We recommend getting a personalised quote and checking the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the policy to understand what is and isn’t covered and what limits, sub-limits, exclusions, terms and conditions apply before deciding if the product is suitable for you. While this is an extensive list of third party property car insurance providers in Australia, we do not guarantee that all providers are shown.

While a third party property only policy provides basic coverage, you can usually add fire and theft extras for a slightly higher premium. Third party property, fire, and theft policies build on the standard third party property coverage, typically offering protection against fire, theft, and attempted theft of your vehicle.

What is third party property car insurance?

Third party car insurance or third party liability insurance is typically included as part of comprehensive car insurance policies, or available as a standalone policy. It covers your legal liability for loss or damage to someone else’s car or property caused by your vehicle.

It’s different from Compulsory Third Party (CTP) insurance which is mandatory for all vehicles registered in Australia. CTP insurance only covers the cost of personal injuries to others involved in an accident where you are at fault, including medical expenses and compensation for lost income, but it does not cover damage to vehicles, property, or your own injuries.

Third party car insurance doesn’t cover accidental damage to your own car or property. For that, you’ll need a higher level of car insurance.

What’s covered by third party property car insurance?

Third party car insurance (also known as third party property) typically covers:

Your legal liability for loss or damage to other people's vehicles and property in an accident if you’re at fault.

Legal costs related to the accident.

Damage to your car or property caused by an uninsured driver at fault.

Third party property damage caused by caravans and trailers towed by your car.

What is third party fire & theft car insurance?

Third party fire and theft car insurance is usually included in comprehensive policies or available as an optional extra to third party property car insurance. It covers your car if it’s stolen, or damaged by fire or theft, plus damage you cause to other people’s property (up to the value shown on your Insurance Certificate). You’re also generally covered if you have a crash with an uninsured driver.

It’s sometimes referred to as ‘fire and theft protection’, which is a higher level of coverage than third party property car insurance (which only covers damage to another vehicle or property you might be liable for, and incidents involving uninsured drivers). Fire and theft cover comes at an extra premium on top of the cost of a third party property only policy.

Keep in mind that third party fire and theft car insurance does not cover accidental damage to your own car or property. For that, you’ll need a higher level of car insurance, namely comprehensive car insurance.

What’s covered by third party fire and theft car insurance?

Third party fire and theft car insurance provides the standard benefits of a third party property policy, plus additional cover for:

Loss or damage to your car caused by fire (including bushfires in some cases), theft or attempted theft.

A hire car if your vehicle is stolen or damaged in a fire or theft incident.

Personal property in your car (optional).

Towing costs if your car is stolen or damaged in a fire or theft.

Damage to your vehicle by uninsured drivers at fault.

Note: These are general inclusions in third party fire and theft car insurance policies. Individual policies may vary, so it's important to check the insurer’s Product Disclosure Statement (PDS) for the full list of inclusions and benefits.

While third party car insurance offers coverage for many incidents and situations, there are some key exclusions you should be aware of:

Accidental damage to your own car if you’re at fault (this is typically covered under comprehensive policies)

Damage or theft of personal effects in your car (unless you choose to add this to the policy)

Windscreen, sunroof or glass damage as a result of an accident

Injuries to you or other people (this is covered under CTP insurance)

Storm, hail, flood or other weather-related damage

Emergency repairs and hire costs

Again, you’ll need to refer to the insurer’s PDS for the full list exclusions, limits and conditions.

The cost of third party car insurance will depend on several factors including:

1

Your level of cover

Your policy cost will vary depending on whether it’s included in comprehensive car insurance or purchased as a standalone cover.

2

Optional extras

You will generally pay an additional premium if you choose to add fire and theft cover to your policy.

3

Your policy excess

Increasing your excess can lower your premium and vice versa. Most insurers allow you to adjust your excess to increase or decrease your premium.

4

Your age

Young drivers under 25 generally pay a higher car insurance premium as they’re statistically more likely to have a road accident than experienced drivers. You may also pay an additional premium if you have a learner driver listed on your policy.

5

Your driving history

You may pay a higher premium if you’ve made recent claims for at-fault accidents. Some policies offer a no-claim bonus to drivers who haven’t made an at-fault claim in the last 3-5 years.

6

Your car’s age, make and model

Car insurance premiums also vary depending on your car's make, model, age and condition. For example, a newer car would typically cost the insurer more to replace than an older vehicle; therefore, you may pay a higher premium.

7

Where your car is usually parked

You’ll generally pay a lower premium if your car is parked in a secure spot like a garage or within the boundary of your property instead of on the street or in a public car park. This would only impact your comprehensive cover costs as third party property only doesn't offer benefits for theft or weather damage.

8

Your choice of provider

The cost of third party car insurance will vary between providers as they assess risk differently and have their own underwriting guidelines. It’s important to compare various cover options before deciding on a policy.

Example of third party car insurance costs

Third party car insurance can cost between $25-40 per month, based on analysis of a selection of quotes obtained by Money.com.au. The quotes show third party fire & theft cover is more expensive than third party property only cover, but the difference in cost can vary significantly between providers.

Insurer	NRMA
Third party property only	$280.30 (annual) $23.37 (monthly)
Third party property, fire & theft	$348.44 (annual) $29.05 (monthly)
Insurer	Suncorp
Third party property only	$289.19 (annual) $29.25 (monthly)
Third party property, fire & theft	$306.10 (annual) $30.94 (monthly)
Insurer	ING
Third party property only	$302.62 (annual) $29.29 (monthly)
Third party property, fire & theft	$326.81 (annual) $32.09 (monthly)
Insurer	RACQ
Third party property only	$365.10 (annual) $36.93 (monthly)
Third party property, fire & theft	$392.15 (annual) $39.67 (monthly)

Insurer	Third party property only	Third party property, fire & theft
NRMA	$280.30 (annual) $23.37 (monthly)	$348.44 (annual) $29.05 (monthly)
Suncorp	$289.19 (annual) $29.25 (monthly)	$306.10 (annual) $30.94 (monthly)
ING	$302.62 (annual) $29.29 (monthly)	$326.81 (annual) $32.09 (monthly)
RACQ	$365.10 (annual) $36.93 (monthly)	$392.15 (annual) $39.67 (monthly)

Quotes obtained on 14 November 2024. This is an example showing the cost difference of different types of car insurance from selected providers for a 2021 Hyundai i30. Quotes are based on a 35-year old male driver in QLD driving a car for private use only, with no previous claims and no driver under 25 on the policy. Prices shown are for this scenario only and are not necessarily indicative of what you may pay.

Consider optional extras if you think you’ll need additional coverage

Jared Mullane, Senior Finance Writer

Most third party car insurance comes with standard inclusions and benefits, but there are also optional extras you can add to your policy (for an added premium). These extras may include services like roadside assistance, the ability to choose your repairer, and a hire car following an accident, among others.

Jared Mullane, Senior Finance Writer

To find cheap third party car insurance, start by shopping around and comparing quotes from different insurers. Prices can vary significantly between providers, so it’s worth looking at multiple options. Compare premiums on price, but also excess amounts and the number of inclusions that are most important to you.

Check for any car insurance deals, such as no-claim bonuses or multi-policy discounts, which can help reduce your premium. Additionally, consider adjusting your policy’s excess (the amount you pay out-of-pocket in the event of a claim) — choosing a higher excess can lower your premium, but make sure it’s an amount you can comfortably afford in case of an accident.

Third party property vs third party fire and theft

This table shows what’s generally included/excluded under each level of third party car insurance, but inclusions will vary depending on your individual policy and insurer. Check your insurer’s PDS for the full list of inclusions, limits, sub-limits and conditions of cover.

Benefits	Third party property only	Third party property, fire & theft
Loss or accidental damage to your car	No	No
Injuries to you or other people	No	No
New car replacement (if your car is stolen or written off)	No	No
Car hire after an accident	No	No
Damage to other people’s property	Yes	Yes
Fire damage	No	Yes
Theft/attempted theft damage	No	Yes
Legal liability for third party damage	Yes	Yes
Choice of market value or agreed value	No	No
Essential repairs	No	No
Emergency transport & accommodation	No	No
Hire car following theft	No	Yes
Hire car after an accident	No	No
Personal effects replacement	No	Optional in some policies
Repair guarantee	Yes	Yes
Replacement of keys	No	No
Towing costs	No	Yes
Trailer	No	No
Damage to your vehicle caused by an uninsured motorist	Yes	Yes

Source: AAMI, Budget Direct and Suncorp Insurance.

Is third party car insurance worth it?

Whether third-party car insurance is worth it depends on your individual circumstances and what you're looking to cover. Like many insurance products, there are some pros and cons to consider that may help you make up your mind:

Pros

Typically the most budget-friendly option because it covers damage you cause to others, not your own vehicle. A good choice if you’re looking for basic protection and want to keep premiums low.

Provides peace of mind knowing you’re covered if you’re at fault for damaging other people’s cars or property.

A third party property, fire and theft policy builds on a standard third party property only policy, which can be valuable if you’re worried about your car being stolen or damaged by fire but don’t want to pay for comprehensive coverage.

Cons

It doesn’t cover you for repair or replacement costs of your own vehicle if you’re in an accident. If your car is damaged, you’ll normally have to pay out-of-pocket unless the other driver is at fault and has sufficient insurance.

If the other driver is uninsured or underinsured (and at fault), your third-party insurance likely won’t cover your car’s damage.

You won’t be covered for fire, theft or attempted theft unless you take out a third party property, fire and theft policy, which will add more costs to your premium.