Third party fire and theft car insurance is designed to cover you when your vehicle is stolen, damaged by fire, or you’re responsible for an accident that damages someone else’s vehicle or property. This mid-level car insurance provides cover against the most common risks you face when on or off the road, but is designed to be more affordable than comprehensive car insurance.
If you’re looking for third party fire and theft cover for your car, read on to discover how to compare policies and choose the right option for you.
What's in this guide?
- Compare third party fire and theft car insurance
- What does third party fire and theft car insurance cover?
- Is this type of car insurance right for me?
- What are the benefits of third party fire and theft car insurance?
- What isn’t covered by third party fire and theft insurance?
- How much does third party fire and theft car insurance cost?
- Is third party fire and theft cover worth it?
- How can I save money on car insurance?
- Frequently asked questions about car insurance
Compare third party fire and theft car insurance
What does third party fire and theft car insurance cover?
Third party fire and theft policies cover fire, theft and your liability for loss or damage to other people’s property. A typical policy may include the following benefits:
- Loss or damage due to fire or theft. Cover up to the market value of your vehicle for loss or damage caused by fire or theft.
- Third party cover. Covers your legal liability for loss or damage to someone else’s vehicle or property.
- No-fault crash with an uninsured motorist. Limited cover for repairs to your vehicle if you can identify the at-fault driver.
- Emergency repairs. Reimbursement for emergency repairs to secure your vehicle and make it safe to drive.
- Storage costs. The cost of storing your vehicle in a holding yard or storage facility after an insured event
- Temporary cover. Temporary cover if you sell your vehicle and buy a replacement.
- Towing. The cost of towing your vehicle after an insured incident, if it can’t be driven or is unsafe to drive.
Is this type of car insurance right for me?
With several different types of car insurance available, it can be tricky to work out which policy is the best fit for you. To help make your choice easier, check out the comparison table below:
|Cover||Comprehensive car insurance||Third party fire and theft insurance||Third party insurance|
|Damage to my vehicle in an accident|
|Damage to another person’s vehicle or property|
|Loss or damage to my car due to fire|
|Loss or damage to my car due to theft|
|Loss or damage to my car due to storm, hail and flood|
|Injury or death to someone else as the result of a car accident|
What are the benefits of third party fire and theft car insurance?
There are several reasons why you may want to consider this type of cover for your vehicle:
- It covers the most common risks. Car accidents, theft and fire damage, are three of the most significant risks all drivers face, and third party fire and theft insurance protects against all of them.
- It’s cheaper than comprehensive car insurance. Third party fire and theft insurance is a mid-level policy option that combines a broad range of coverage with affordable premiums. Because it doesn’t offer the same level of cover as comprehensive car insurance, it’s a lot more affordable.
- It can be a good choice if your car isn’t overly expensive. If your car is a little older and perhaps not as valuable as it used to be, forking out big bucks for comprehensive car insurance may be overkill. However, third party fire and theft cover may offer the right combination of essential cover and cheaper premiums.
- It offers additional benefits. Some third party fire and theft policies may include other benefits, such as towing and storage costs, and cover for damage caused by uninsured motorists.
- It provides peace of mind. Like any form of car insurance, third party fire and theft insurance is about peace of mind. It gives you the confidence and reassurance you need to hit the road.
What isn’t covered by third party fire and theft insurance?
Check the list of general exclusions in a third party fire and theft policy product disclosure statement (PDS) to find out when the policy won’t provide cover. The insurer will not pay your claim for the following:
- You were driving under the influence of drugs or alcohol
- Your car breaks down
- You fail to care for your vehicle or take all reasonable steps to prevent loss or damage
- Your car was being used to carry dangerous goods
- It arises due to a deliberate or intentional act by you
- For depreciation, wear and tear, rust or gradual deterioration
- For pre-existing damage to your vehicle
- Unauthorised modifications to your car cause it
- You were using your car for hire or reward
- It occurs due to an illegal act by you
- Anyone excluded from the cover was driving your car
- It arises due to the lawful seizure of your vehicle
- Loss of use of your car
- Loss of value of your car due to damage
- Your car was being used for testing or demonstrations
- Your car was participating in motorsports
- Your vehicle was being used while overloaded with goods or passengers
- Damage caused by tyre punctures or blowouts
- An unlicensed driver was using your car
- Your car was being driven while in an unsafe or unroadworthy condition
- If you do not remain at the scene of an accident when required by law to do so
- It arises because you use an incorrect type of fuel
How much does third party fire and theft car insurance cost?
That depends on a range of things. When you apply for a third party fire and theft policy, you need to answer a number of questions about your car and where you live. Your answers to these questions reveal a range of risk factors that can affect the cost of car insurance, such as:
- The car you drive. The more expensive or powerful your vehicle, the more it will cost to insure. Whether or not it has a security system fitted can also affect premiums.
- Where you live. If your suburb has a high rate of theft, expect to pay more for cover. You can also expect to pay more if your car is kept on the street rather than locked in a garage.
- The insured drivers. The age, gender, experience, driving record and claims history of all drivers is assessed by the insurer when determining your premiums. Young drivers pay more than older drivers and cover tends to be more expensive for men than women. Also, safe drivers with a clean record are cheaper to insure than those with a chequered history.
- Other factors. Is the car used for business or private use? How many kilometres do you drive each year? Has the vehicle been modified at all? Your answers to all of these questions will have a bearing on how much you pay for cover.
Is third party fire and theft cover worth it?
The answer to this question depends on two factors:
- How much cover you want
- How much cover you can afford
Third party fire and theft insurance is a mid-range cover option. It’s more affordable than comprehensive car insurance but not as cheap as third party cover, and it also sits between the two policies regarding the benefits it offers. If this sounds like the type of protection you’re looking for, start comparing third party fire and theft policies today.
How can I save money on car insurance?
Keep the following tips in mind to help you save money on your car insurance premiums:
- Compare policies. It’s quick and easy to compare car insurance quotes online, so get quotes from multiple insurers and see which policy comes out on top.
- Choose the right level of cover. The lower your level of cover, the less you will pay for the policy. With this in mind, consider whether third-party only-cover might be a better fit than a policy that also covers fire and theft.
- Choose a higher excess. The higher the excess, the cheaper your premium.
- Take advantage of discounts. Many insurers offer discounts to people who insure multiple cars; hold multiple policies with the same provider or are long-term customers.
- Restrict cover. Restricting cover to drivers over the age of 25 or 30 can help reduce your premiums.
- Secure your vehicle. Vehicles that are kept in a locked garage and have security and anti-theft devices installed are harder for thieves to steal, which therefore makes them cheaper to insure.
- Buy online. Some insurers offer substantial discounts if you purchase cover online.
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