Third party car insurance

By Olivia Gee ·
Young person in car with third part insurance

A third party what? There are so many different insurances we need to consider in our lives, from life insurance to home and contents and everything in between. When it comes to your car, you might think CTP (also known as your greenslip) is enough, but that's not really the case.

Compulsory Third Party insurance (CTP) only covers physical harm to yourself and others if you're injured in a car accident where you’re at fault. When you register a car in Australia, some states and territories will include the CTP cost in the price of your registration. Take a more comprehensive look at what is required to legally get on the road in each Australian state or territory.

But on top of your greenslip, you need to consider third party property car insurance. Although we don’t compare third party car insurance at Mozo, we do want to help you better understand what it is and know your options. 

    What is third party car insurance?

    Third party car insurance is the first tier of option cover for your vehicle after CTP. This kind of policy can help cover the cost of repairs to other vehicles, but not your own. This might work well if you've got an older set of wheels not really worth the parts, but want to make sure you don't have to foot the whole bill after an accident where you are at-fault.

    Keep in mind, each policy will have different limits to that cover, so if you're involved in a more costly accident, there's the possibility you'll have to fork out addition cash even after a claim is accepted. You can often increase this level by paying a little extra on your premium.

    And if you're worried about your car being stolen or set alight when parked in a dangerous area, you. could consider getting coverage with a third party fire and theft policy (the next rung up on the car insurance ladder).

    Why should I get third party insurance?

    If you feel that your car isn’t worth insuring or it’s just out of budget for now, Mozo suggest you at least secure a third party property damage car insurance policy. 

    Accidents happen, and no matter how good a driver you are, all it takes is one slip-up and you could be left with a large repair bill for another driver's expensive set of wheels. So as you can see, having insurance is absolutely vital if you’re going to be on the road.

    If you can’t afford the full cover of comprehensive, go for third party property so there’s less of a chance of you ending up out of pocket. 

    What does third party car insurance cover?

    It won’t cover damages to your car, but it will cover the one or multiple cars you collide with. Your policy may even cover the damage caused to surrounding property. Again, remember there's a limit to the amount your provider will dish out can be different from insurer to insurer, and it may not cover all the costs in an at-fault accident.

    Don't stress about hospital or doctors bills – your CTP is there to cover the cost of injuries to yourself and other others.

    What’s the difference between third party car insurance and comprehensive cover?

    A fair bit. Premium prices can differ considerably, and it could mean the difference of thousands of dollars if you’re at-fault in a car accident. Let’s have a closer look:

    Third party car insurance basic 

    This is a basic policy covering the essentials. It covers the cost to repair other cars if you’re found to be at fault in an accident. But it could be quite minimal, perhaps only covering up to $5,000 worth of repairs.

    While it is the cheapest option and will suit stricter budgets, this limit could cause problems at claim time. What if the damage to the other driver’s car is $9,000? What if you damage several cars at once? This could amount to way over $20,000.

    Comprehensive

    This policy will cover the other driver, their car and possession if you’re found to be at-fault in an accident, but also your own car. Cover can go into the tens of thousands, depending on which policy you select and any option extras you may want included in your policy. But this cover and corresponding premium level is really dependent on personal choice.

    To investigate all your options, check out some of the comprehensive car insurance policies below.

    Car Insurance Comparison Table - page last updated October 25, 2020

    Search promoted car insurance below. Advertiser disclosure.

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    *Any information provided on this page should be considered a summary and general advice only. All information should be verified before purchase via the relevant Product Disclosure Statement (PDS).

    ^See information about the Mozo Experts Choice Car Insurance Awards

    Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

    While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

    Olivia Gee
    Olivia Gee
    Money writer

    As one of Mozo’s money writers, Olivia Gee shares her research and insights across banking, insurance and property to help readers save. She loves getting stuck into a story, unveiling all the facts, breaking down stats and drawing on personal experiences - this is what drives her as a journalist. She has a double degree from the University of Wollongong, with a BA in Journalism as well as Media and Communications.