Third Party Property Damage Car Insurance Comparison

Whether you’re about to purchase a new or used vehicle, or you want to compare and switch from an existing car insurance policy, it’s important to understand the ins and outs of third party property damage car insurance and how it works.

Our comprehensive guide will provide you with all the insights you need to make an informed decision when comparing and choosing the right policy for your vehicle. Here’s what we’ll be diving into:

• Cost estimates for third party property damage insurance in Australia.

• Coverage details and what’s included in a policy.

• Exclusions and what’s not covered.

• Who might benefit from this insurance.

• Pros and cons of third party property damage insurance compared to other types.

• Frequently asked questions.

How Much Does Third Party Property Damage Cost?

Several factors will come into play when you start searching for third party property damage car insurance. From the type of vehicle you drive, to your driving history and where you will store the vehicle when not in use, these will all impact the premiums you will be quoted by various insurers.

Factors Affecting the Cost of Third Party Property Damage Premiums

Bear in mind that insurance providers in Australia take into account multiple factors when setting their premiums and providing you with a quote. Being able to recognise these factors can help you better estimate and compare third party property car insurance costs. Here’s what may affect the cost of your third party property damage car insurance:

1. Your age and experience: Younger and inexperienced drivers are considered higher risk, which can result in higher policy quotes. Car insurers often charge more to drivers who are under the age of 25 or those with very little driving experience.

2. Your driving history: Whether you have been involved in any accidents, as well as your history of car insurance claims, will influence your premiums. Drivers who have a history of accidents, speeding tickets/DUIs or have recently made claims are considered ‘high risk’ and usually face higher premiums compared to drivers with a clean record.

3. Location: Suburbs and cities with higher rates of accidents, theft or vandalism may have higher premiums as well. Be aware that busy areas like capital cities tend to have higher associated insurance costs compared to rural parts of the country – this is due to increased traffic and therefore greater risk of an incident occurring.

4. Usage: Take into account how you intend to use the vehicle, as well as how frequently you will use it. Cars used for business purposes or daily commuting may have higher premiums compared to vehicles that will only be used for weekend drives or the odd journey.

5. Policy coverage and excess: How much coverage and excess do you want under your third party property damage policy? Higher coverage limits and lower excess amounts will generally mean your premiums will be more expensive.

6. Insurance provider: Different insurance companies have their own pricing models and strategies for how they assess risk. Premiums can vary between providers, even companies that are underwritten by the same entity, so make sure you compare third party property damage car insurance quotes from multiple insurers to find the most competitive rate.

What Does Third Party Property Damage Cover?

By definition, third party property damage car insurance is cover for damages caused by your vehicle to someone else’s property. Note that ‘property’ doesn’t just mean vehicles.

Ultimately, this type of insurance will protect you financially in the event you damage another person's vehicle or property. While the coverage varies from insurer to insurer, here are some things that most third party property damage car insurance policies will include:

• Damage to another person's vehicle or property: If you are at fault in an accident and end up damaging someone else's car, third party property damage will cover the cost of repairs or replacement. It also extends to other types of property that might be damaged in the accident, like buildings or fences.

• Legal liability coverage: With this type of insurance, you’ll usually get legal liability coverage up to $20 million or more. In other words, the costs associated with property-damage claims against you will be covered – legal fees, court costs, as well as compensation to the affected party for their loss or damage.

• Towing costs: If your car is involved in an accident and needs to be towed, third party property damage insurance will usually take care of any ‘reasonable’ towing costs. So you won’t be left to foot the bill if your car needs to be towed from the scene of an accident.

• Damage caused by uninsured drivers: In Australia, a portion of the premium paid for compulsory third party (CTP) insurance is allocated to the nominal defendant fund. The statutory body’s fund provides coverage for personal injury caused by uninsured or unidentified drivers. Third party property damage policies also provide coverage for property damage caused by uninsured drivers, up to the limit specified in the policy.

The specifics of coverage will vary between providers, so always carefully review the Product Disclosure Statement (PDS) to understand the inclusions, limitations and conditions of the policy.

What’s Excluded from Third Party Property Damage Car Insurance?

While third party property damage is a valuable type of coverage to get, there are exclusions you should be aware of, and they may differ from provider to provider. Here are some common exclusions associated with this type of car insurance:

• Damage to your own vehicle: Third party property damage doesn’t cover damage to your own car. So if you’re at fault in an accident or your car is damaged due to other incidents, whether it’s a natural disasters or vandalism, then you won’t be able to claim for repairs or replacement.

• Personal injury coverage: Because this type of car insurance is focused on property damage, it doesn’t include cover for personal injuries that you or your passengers may sustain in an accident. If you want to get cover for any medical expenses that result from an accident, think about taking out a different policy like comprehensive car insurance or personal health insurance.

• Damage caused by fire, theft or natural disasters: If your car is damaged or destroyed due to any of these unfortunate events, you won’t be covered with a third party property damage policy.

• Under the influence: Car insurers won’t cover any accidents that happen while the driver is under the influence of drugs or alcohol. Driving while impaired is an obvious breach of Australian law, so insurance companies will not pay out for any damages or liability that occur during these incidents.

• Tyre maintenance: If you drive with damaged tyres or tyres that don’t meet the minimum legal tread limit (1.5mm in Australia), your insurance is unlikely to cover any claims related to accidents caused by worn-out or poorly maintained tyre. Always make sure your tyres are in good condition before getting behind the wheel.

Who is Third Party Property Damage Right For?

It’s different for everyone.

Essentially, third party property damage car insurance is most suitable for owners who want basic coverage that will protect them financially in the event they cause damage to someone else’s car or property while driving. Here’s what you should consider to find out whether it’s the right fit for you:

• Owners of older or less-valuable vehicles: If you own a well-loved vehicle, third party property damage can give you the necessary coverage without any added costs like comprehensive insurance. It simply protects you from liability for damage caused to other vehicles or property.

• Drivers who are on a budget: If you don’t want to spend through the nose on premiums but still want some coverage, then third party property damage insurance can be a useful solution. It provides basic coverage that will protect your bank balance in the event of you damaging someone else's property.

• Low-market-value car owners: If your vehicle doesn’t have the highest market value after years of love and use, then comprehensive coverage might not be as important to you.

If you are considering switching over to a third party property damage insurance policy, make sure you consider your individual circumstances before signing up for a new policy. The experts at Compare Club can help guide you along your car insurance journey and assess whether this particular type of insurance aligns with your lifestyle, your budget and your needs while on the road.

Pros & Cons of Third Party Property Damage Insurance

Not certain whether third party property damage insurance is the right choice for you, especially if you’ve been considering other policy types like comprehensive car insurance and third party fire and theft car insurance? Here are some pros and cons to help you make a more informed decision:

Pros:

• Lower premiums: Third party property damage insurance generally has lower premiums compared to other policies, especially all-encompassing insurance like comprehensive cover. 

• Essential cover for property damage: If you find yourself in the unfortunate situation of causing damage to someone else’s property while driving, this insurance will protect you from potentially huge financial costs if you are at fault.

• No hidden complexities: Third party property damage is a straightforward and easy-to-understand type of car insurance. Especially when you find car insurance with Compare Club, you can avoid all the complex policy jargon make a quick and easy decision that meets your needs.

• Cost-effective for older vehicles: For drivers with older or less-valuable cars, third party property damage is often a more cost-effective insurance option – one that provides cover for damage to other people’s property while minimising the premiums you’ll pay.

Cons:

• Limited cover for your own car and personal injury: One of the main drawbacks to this type of insurance is the limited coverage it provides for your own vehicle and any personal injuries you might incur during an accident. You’ll be solely responsible for the cost of repairing or replacing your car, as well as resulting medical costs.

• Exclusion of fire, theft and natural disaster cover: If you want to be protected against these risks, you’ll need to take out a higher level of car insurance like comprehensive car insurance or third party fire and theft.

Be sure to carefully weigh these pros and cons against your own needs, budget and risk tolerance to figure out the best coverage for your individual circumstances.

How to Compare and Find Affordable Third Party Property Damage Car Insurance

When searching for third party property damage car insurance, here are the steps that can help you secure an affordable policy without compromising on cover:

1. Compare a range of quotes: Prices for car insurance policies can vary depending on the insurance provider. Take the time to compare third party property damage car insurance quotes from different insurers to find the best deal. It’s even simpler with Compare Club, as we will do all the work for you so you can choose the most appropriate cover – and get value for money!

2. Opt for a higher excess: ‘Excess’ is the amount you agree to pay towards a claim. Choosing a higher excess amount can lower your premiums. Just make sure you choose an amount that you can comfortably afford in the event of a claim.

3. Nominate specific drivers: Some insurers may lower your premiums if you nominate the specific driver (or drivers) who will be using your car. By limiting the number of drivers or only nominating those who are above 25, you might be end up paying less.

4. Bundle your insurance: If you already have other insurance policies with a certain provider, such as home insurance, check to see if they offer car insurance as well. Bundling your cover with one insurer can be a great way to get a discount or take advantage of a special offer.

Frequently Asked Questions

What is Third Party Property Damage Car Insurance?

Third party property damage car insurance provides coverage for damage caused by your vehicle to someone else's property. It doesn’t cover damage to your own vehicle.

Is Third Party Property Damage the Same as CTP?

No, third party property damage insurance is a separate type of policy from compulsory third party (CTP) insurance. CTP covers personal injury claims, while third party property damage covers – as the name suggests – property damage caused by your vehicle.

Is Third Party Property Damage a Green Slip?

No. Green slips are a form of CTP insurance specific to New South Wales.

Does Compulsory Third Party Insurance Cover Property Damage?

No, CTP insurance doesn’t cover property damage; it only covers personal injuries caused by your vehicle.

Which Company is Best for Third Party Car Insurance?

The best company won’t be the same for everyone, and it will depend on your individual needs, your budget and your overall preferences. It's recommended that you compare third party property damage car insurance quotes and coverage options from multiple providers to find the most suitable one for you. Compare Club makes it easy to compare and save on car insurance. Remember, the cost of car insurance premiums and the amount of coverage in a particular policy will change over time. That’s why it’s so important to get the most up-to-date information by consulting directly with your provider or using a trustworthy platform like Compare Club.

Ready to find the right third party property damage policy for your needs? You can start comparing and saving on car insurance today with Compare Club.

Important Information: The information provided above is considered to be general advice, which means it has been prepared without considering your current objectives, financial situation or needs. Therefore, before acting on this advice, you should consider the appropriateness of the advice for your circumstances. Before making a decision about car insurance, you should consider the relevant PDS and policy wording to understand the cover, exclusions and conditions of the insurance cover.

Paul Coughran is the General Manager of Emerging Verticals at Compare Club. Paul has over 20 years of experience across a wide range of industries including Banking and Finance, Telecommunications and Energy. Paul leads a team of trusted experts dedicated to helping individuals make informed decisions about their insurance and utilities needs.

Meet our car insurance expert, Paul Coughran

Paul's top car insurance tips

• 1

  Regularly compare your insurance policies – You could be paying for cover you don’t need. Shopping around every so often can save you a fair bit, maybe even hundreds each year.

• 2

  Don’t just look at the premium—check the excess too. While a higher excess might bring down your premium, remember you’ll have to fork out more if you do need to claim.

• 3

  Double-check what’s included in your policy. Extras like windscreen cover or roadside assistance might not be part of the deal and could cost you more.

• 4

  If you don’t drive much, consider usage-based insurance. Some policies base your cost on how much you actually drive, if you work from home or only use your car for short trips this might be a much better option.