Third Party, Fire and Theft
In Australia, all car owners must take out Compulsory Third Party (CTP) insurance with the renewal of the car's registration. While this would cover the cost of any third party injuries in an accident, it doesn't cover property damage either to yourself or others.
Third party, fire and theft policies cover you for damage you might cause to another person's property in an accident, with the added benefit of cover in the event your own car is stolen, or is damaged by fire.
This covers most of the expensive scenarios for drivers, although you will have to pay for your own repairs in the event of an accident.
For that, you would need a comprehensive motor insurance policy.
This is a suitable policy if you are driving an older car which isn't really worth much, or if you are a younger driver, but want more cover than the basic third party property policy.
Car insurance benefits
Features included in third party, fire and theft policies are similar to those of third party property.
Policies that include uninsured motorist damage are valuable. With this feature, you can make a claim for your own repairs if you are hit by an uninsured driver, it's their fault and you have their details.
Legal costs are also sometimes included on third party property policies, which could be useful if you are involved in a legal dispute.
Insurers also typically offer incentives such as 24-hour claims hotlines, paperless claims and a choice of payment plans.
Additionally, insurers may pay for some of the costs involved with a fire or theft claim. For instance, you may be covered if your car needs towing after fire damage, or if it is damaged in an attempted theft.
Cheap car insurance
Third party, fire and theft is usually cheaper than comprehensive insurance, but you may be surprised. It is certainly worth getting a quote for both – and the easiest way to do this is by doing your car insurance comparison online.
Another way of lowering your car insurance quote is by selecting a higher excess.
It's also a good idea to check whether your insurer offers discounts to seniors, or if you are buying several policies at once.
Compare car insurance quotes
Motor insurance companies use different methods to calculate premiums, so the best way to save on your car insurance is to shop around.
The easiest way to compare car insurance is online as you can compare more insurers than you could if you phoned each one at a time.
Using our comparison tools, you can find out if specialist insurers can give you a better quote, or which insurer can give you the best overall policy.
Motorists also often receive a discount by buying their vehicle insurance online, making this the quickest and cheapest route to finding car insurance.