Get App
What is third party fire and theft car insurance?
Third party fire and theft car insurance is a type of insurance that covers you for damage caused to other people’s cars or property (third parties) after a car accident, as well as damage to or loss of your own car due to fire or theft. Out of the four most common forms of car insurance available in Australia, third party fire and theft is generally considered the second most comprehensive level of cover, followed by comprehensive car insurance. Both offer a higher level of cover than compulsory third party (CTP) cover and third party property cover.
Many car insurance providers in Australia offer third party fire and theft cover, so if you’re thinking about taking out a policy, you’ll have a range of options to choose from and compare. Among the factors you might want to consider when shopping for cover are:
- the premiums charged;
- the level of protection;
- what extras are offered as part of the policy, and;
- the level of service the insurer is likely to provide if you need to make a claim.
What does third party fire and theft car insurance cover?
Third party fire and theft insurance will typically cover an insured driver for damage they cause to the vehicle and property of a third party, and will also cover an insured driver if their own car is stolen or damaged in a fire.
Beyond these main risks, some insurers may offer additional cover or optional add-ons to the policy, but this will typically mean higher premiums. It’s important to read the policy’s product disclosure statement (PDS) or speak to your insurer so that you’re aware of what is and isn’t covered by your policy, and what limits may apply.
Some of the risks that may be covered by a third party fire and theft policy include:
- Hire Car after theft
- Towing costs
- Transport costs (to your destination if your car can’t be used following an insured event)
- Emergency accommodation costs
- Damage caused to your vehicle (up to a limit) as a result of an accident involving an uninsured driver who is at fault
- Damage to personal property in your car due to an insured event
- Damage caused to capsules and car seats due to an insured event
- Third party property damage caused by a caravan or trailer being pulled by the insured vehicle
Importantly, third party fire and theft insurance usually does not cover the cost of repairing or replacing your own vehicle in an accident where you are at fault. Some other risks, such as damage caused by certain weather events, are also typically excluded.
How does third party fire and theft compare to other car insurance policies?
Compulsory third party (CTP) car insurance
While third party fire and theft covers you if you damage another person’s property, or if your car is stolen or catches fire, it does not cover you for damages you might need to pay if you injure someone on the road. This is the purpose of CTP insurance; a type of insurance policy that is mandatory for all registered vehicles in Australia.
Third party property car insurance
Third party property insurance typically only covers the policyholder if they accidentally cause damage to another person’s property. It does not cover risks to your own vehicle, such as fire and theft.
Comprehensive car insurance
In addition to covering the same risks as third party fire and theft car insurance, comprehensive cover can help protect you financially if your own car is damaged in an accident or other weather-related risks. Depending on the policy, comprehensive car insurance may also cover other costs you may incur following an accident, such as a replacement hire car while your own car is being repaired.
Compare Comprehensive Car Insurance
What factors affect the cost of third party fire and theft insurance?
When calculating the cost of your third party fire and theft insurance premiums, your insurance provider is likely to consider such factors as:
- Your age: Younger drivers under the age of 25 tend to pay more for insurance premiums as they may be considered riskier, whereas older drivers with clean driving histories may pay less.
- Your address: If you live in an area that is prone to natural disasters, especially bushfires or floods, or has a high crime rate, your premiums may be higher as the risk may be considered greater.
- Your car: The make, model, age, condition and value of your car can also affect the cost of your insurance premiums.
10 tips to help you find the cheapest third party fire and theft car insurance policy
If you’re looking for the cheapest deal on a third party fire and theft car insurance policy, here are some tips:
- Shop around a range of providers to compare premiums, ensuring you are looking at what’s covered by the policies, as well as their price.
- Opt out of optional cover that you don’t need
- Consider increasing your excess, but remember you will have higher costs if you need to make a claim
- Park your car in a secure location overnight, and let your insurer know so it can be factored into your premium calculations
- Keep your mileage down (the more your drive, the higher your premiums may be)
- Drive safely, as your premium could be cheaper if you have a clean claims history and driving record
- Minimise the number of drivers under 25 nominated as additional or listed drivers on your policy
- Consider if it’s cheaper to buy an annual policy and pay upfront, rather than pay monthly premiums
- Review whether you use market or agreed value to insure your car
- Keep an eye out for insurers offering discounts to customers who purchase their policy online instead of over the phone.
Related story: 20 ways to cut the costs of your insurance premiums
- Save 15%^ on your first year’s premium when you purchase a new Car Insurance policy online.
- 24/7 Phone & Online Claims.
- Budget Direct - Insurance Solved.
- Insurance that's a bit more you-shaped.
- Canstar's 2024 Most Satisfied Customers Car Insurance - National Award.
- Lodge a Claim 24/7 with our Advisors
- Flexible cover before, 24/7 claims after.
- Save $75 on new Comprehensive car insurance online.
- Conditions apply.
- No age-based excess.
- No excess on your first covered windscreen repair.
- Canstar 2025 Outstanding Value Car Insurance Award.
- Get up to $50 off a Coles shop every month with free Coles Plus Saver for 12 months when you take out a new Comp Car Policy & link your Flybuys. Offer ends 31.08.25.
Cover image source: Zamrznuti tonovi/Shutterstock.com
