Third Party car insurance generally covers you for damage you may cause to other people's property. There are two main types of Third Party car insurance you should consider, depending on your budget and your needs, but don't confuse them with Compulsory Third Party Insurance (CTP), which is also known as a green slip.
While the green slip is compulsory for all vehicles registered in NSW and QLD, Third Party Property car insurance is optional. Responsible drivers should ensure that they are in a position to cover any damage caused by their vehicle in an accident, and the best way to do this is through insurance.
1. Third Party Property Car Insurance
Third Party Property car insurance can provide protection against any damage you may cause to other people's property during a car accident, even if the damage was your fault. This insurance covers the other person's car damaged at the time of the accident.
3rd Party insurance doesn't cover damage caused to your own car, so you may be in the position of having to pay for repairs to your own vehicle or being without a car.
2. Third Party Fire and Theft Car Insurance
Third Party Fire and Theft car insurance also covers legal liability for damage to other people's property that you may cause, but additionally, this type of insurance covers your own car if it is stolen or damaged by fire. Also depending on the insurer, cover may be included for personal property damaged in the same accident, and a limited amount of cover in a no-fault accident if your vehicle is damaged by an uninsured vehicle.
Depending on the particular policy you select, you may also receive cover for:
- Reasonable towing costs to move your car to the nearest safe place;
- Emergency travel to return home if your car cannot be driven;
- Emergency accommodation costs if the accident occurs a certain distance (e.g. 200km) from your home and your car cannot be driven.
Read the full Product Disclosure Statement of any product you are thinking of purchasing to understand what is included in the policy.
Third Party car insurance is important if you just want to ensure that you have cover for damage you may cause to other people's vehicle and property. Even a small accident could cost you thousands to repair someone else's car.
These articles are provided as reference material to allow more informed decision making, but are not intended as being a complete source of information on any topic. All readers should make their own independent analysis on the topic to make sure they have considered the aspects that are important to them.