Third Party, Fire and Theft Car Insurance

Third-party fire and theft (TPFT) car insurance is designed to cover you when your vehicle is stolen or damaged by fire, or if you’re responsible for an accident that damages someone else’s vehicle or property. This mid-level car insurance option provides cover against the most common risks you face when on or off the road, and is designed to be more affordable than comprehensive 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 includes the following benefits:

• Third-party liabilities. Protects your legal liability for property damage, injury, or death if you cause an accident.
• Loss or damage to your car from fire or theft. Covers up to the market value of your car if it’s stolen, someone tries to steal it or it’s damaged in a fire. Your cover will often include all the expenses associated with towing and storing your damaged car.

What’s the difference between TPO and TPFT insurance?

Third-party only insurance (TPO), the most basic level of motor cover in Singapore, only compensate the third parties for property damage, injury, or death if you cause an accident. It is the minimum legal requirement to drive under Singapore law.

Third-party, fire and theft insurance (TPFT) picks up where TPO leaves off by also protecting you from accidental loss or damage caused by fire and/or theft of the vehicle.

You can view them as two important pieces to the same puzzle, where both work together to offer you well-rounded cover without any unnecessary overlap.

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 type of policy is the best fit for you. To help make your choice easier, check out the comparison table below:

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 biggest risks all drivers face, and TPFT insurance provides protection against all of them.
• It’s cheaper than comprehensive car insurance. TPFT insurance is a mid-level policy option that combines a broad range of cover with affordable premiums. Because it doesn’t offer the same level of cover as comprehensive car insurance, it’s a whole 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, TPFT cover may offer the right combination of essential cover and cheaper premiums.
• It offers additional benefits. Most third party fire and theft policies also include a range of additional benefits, such as towing and storage costs, a hire car after theft, and cover for damage caused by uninsured motorists.
• It provides peace of mind. Like any form of car insurance, TPFT insurance is all about peace of mind. It gives you the extra confidence and reassurance you need to hit the road.

What isn’t covered by third party, fire and theft insurance?

There are a few situations where TPFT won’t cover you and they are most in relation to damages to your car. Here’s where you won’t be covered:

• Natural disasters. You won’t be covered for natural disasters including thunderstorms, floods, earthquakes or landslides. The one exception is bushfire since TPFT does cover fire of all types.
• Vandalism. You won’t be covered for vandalism, for example, if some kids throw a rock through your window. However, you will be covered if someone damages your car while attempting to steal it.
• Hit and run. You won’t be covered if someone hits your car and they never find the culprit.
• Accidents you cause. You won’t be covered for any damage to your own car if you cause the crash.

How much does third-party, fire and theft car insurance cost?

That depends on a whole lot of things. When you apply for a third party, fire and theft policy you’ll need to answer a whole range 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 is, the more it will cost to insure. Whether or not it has a security system fitted can also affect premiums.
• The insured drivers. The age, gender, experience, driving record and claims history of all drivers will be 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, while safe drivers with a clean record will be cheaper to insure than those with a chequered history.
• Other factors. Is the car used for commercial or private use? How many kilometres do you drive each year? Has the car 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?

Third-party, fire and theft is worth it if you don’t need the full suite of cover for your own car, but have a higher risk of experiencing fire damage or theft.

As the middle ground between TPO cover and comprehensive cover, the cost is usually slightly more than TPO, meaning you won’t have to fork out nearly as much as you would for full protection.

Meanwhile, you’ll find it more useful than the basic TPO cover, especially if you:

• Don’t have secure parking
• Travel frequently with your car
• Live or work in a fire and crime-prone area

Many TPFT policies also cover you for a hire car if your car is stolen and may even offer emergency transportation and accommodation if it’s stolen while you’re far from home. This gives you an added safety net that goes beyond just protection for your car.

Where can I find the cheapest third-party, fire and theft policy?

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 your policy. With this in mind, consider whether third-party only cover might be a better fit for you than a policy that also covers fire and theft.
• Choose a higher excess. The higher your excess, the cheaper your premium will be.
• 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 only can help you reduce your premiums.
• Buy online. Some insurers offer substantial discounts if you purchase cover online.

How can I find the best third party, fire and theft insurance?

Most third party, fire and theft policies cover the same broad set of events. Some of the differences lie in the additional features each offer you. To find the best policy for your needs, you’ll want to identify the features that are important to you, track down a few policies that offer them and then go from there.

Here’s what to keep in mind:

• Can you live without a car? If you’d find it hard to go without your car while it’s being repaired or replaced, you should consider a policy that covers the cost of a hire car.
• Do you have expensive car accessories? If so, you should consider a policy or add-on benefit that covers for your declared accessories. Also, pay attention to the repair or replacement cover limit each policy offers.
• Do you have a workshop you prefer? Some policies allow you to send your car to any workshop that you choose instead of limiting you to its list of authorised workshops. If you prefer to have the option to send your car to your trusted workshop, make sure to use a policy that lets you choose where to go.

Once you land on a few policies that offer the features you want, get quotes from each of them to see who offers the best possible price.

Frequently asked questions about car insurance

• What's the difference between third-party only insurance and third-party, fire and theft insurance?

  Both policies provide cover for your legal liability when you’re responsible for a car accident that causes damage to someone else’s car or property. However, third party, fire and theft insurance also provides cover for loss or damage to your vehicle caused by fire or theft.

• Does comprehensive car insurance include cover for fire, theft and third party property damage?

  Yes, all of these benefits are included in a comprehensive car insurance policy along with a wide range of other cover features.

• Will my third-party insurance policy cover me when I'm driving other cars?

  No. The insurance is for your vehicle only and will not cover you when you drive other cars.

• Does third-party, fire and theft insurance cover damage to my car in an accident?

  No. This type of cover only covers damage to someone else’s vehicle or property in an accident for which you’re responsible. However, many policies will include a limited level of cover when your vehicle is damaged in a no-fault accident with an uninsured motorist.

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