Compare Third Party Car Insurance Companies & Policies

what is third party car insurance

What is third party car insurance? There are actually three variations of 3rd party cover in Australia, each providing slightly different cover to the other.

Compulsory 3rd party cover

You must have this type of insurance at an absolute minimum whenever you are driving your motor vehicle on Australian roads.

This is the baseline cover and is actually included in your vehicle registration process whenever you renew your registration, regardless of the state that you live in. This is partly why registering a vehicle is mandatory in Australia.

This cover is in place to protect you from injury that you cause to other people as a result of a motor vehicle accident where you are at fault. It does not cover for damage to motor vehicles or other property as a result of an accident, regardless of who is at fault.

Why is it compulsory?

Just imagine that you were riding your bike and struck down by a driver of another motor vehicle. You sustain multiple injuries that require extensive medical treatment and you are unable to work for many months. You are also left with permanent injury.

Now imagine that the driver of the vehicle that struck you had no insurance protection in place! You would be left significantly out of pocket! Compulsory cover is in place to protect you against injury and cover medical expenses etc. It is a great thing!

Compulsory cover, in short, covers innocent victims for medical expenses, but does not cover the expenses of the person who is at fault.

Third party property and “fire and theft” insurance

Whereas compulsory cover is in place to protect against injury and medical expenses that arise from a vehicle accident, this is an optional form of insurance that covers the insured driver for damage they cause to other people’s property.

In holding property coverage, your insurer will pay out for the damage you cause to other people’s belongings including; motor vehicles, bikes, fences, house (if you struck a house wall), trailers, caravans, motor homes and anything else you can think of!

A final form of coverage for 3rd party damage is known as third party fire and theft cover. As the name suggests, holding this type of policy will cover you against any damage that is caused to other people’s property that results from a fire or in the event that your vehicle is stolen and the occupants cause damage to other people’s property!

Comprehensive insurance vs third party cover

Getting proper insurance coverage for your vehicle can prevent serious financial losses in the future. Australian insurance companies provide numerous possibilities. Third party and comprehensive car insurance are two of the viable options. What makes them different and which one is better for your needs?

The compulsory form of cover is so because it provides coverage to the individuals that were injured in an accident involving your vehicle. Once you have that, you can think about purchasing additional property, fire and theft insurance. Alternatively, you can go for the comprehensive coverage.

In certain instances, getting comprehensive insurance does not make financial sense. An example would be if you were the owner of a vehicle that had little value. In such a case, the premiums you pay to sustain the full cover might quickly add up to more than the vehicle is worth.

Doing a little bit of calculation about the cost of repairing your vehicle will help you figure out whether comprehensive is the best option for you. Owners of new and expensive cars will definitely benefit from this kind of coverage.

If you are serious about getting comprehensive coverage, you can look around for discounts. Many insurance companies will be willing to provide special offers for new customers, especially if you are applying for the insurance online.

Choosing the right kind of vehicle  insurance depends on the type of car you drive, the distance you travel each day, your driving history and your coverage preferences.

Once you get an idea about the kind of coverage that you need, you should do online research. There are significant differences in quotes and shopping around is the best way to find the right third party or comprehensive car insurance.

Cost of third party car insurance

The cost for mandatory insurance varies depending on your location, your concession status, garaging address, and the make of your vehicle. There are fee schedules available so you can obtain an idea of how much your insurance is going to cost you.

Types of insurance re-cap

The compulsory insurance provides coverage for the injuries that individuals experience during an accident involving your vehicle. This kind of insurance does not provide coverage for vehicle or property damage. This is why many vehicle owners opt for additional cover.

Third party property damage insurance is used to cover losses and damage to somebody else’s property. The third party property, fire and theft insurance gives you additional peace of mind by providing coverage in the case of car theft or damage during fire.

In comparison, the comprehensive car insurance covers all kinds of vehicle damage, theft, damage to other people’s vehicles and property. This is the most complete vehicle insurance option you could be getting because you will receive financial resources to cover losses in most scenarios.

Cost of third party cover

The second important question focuses on the price of the comprehensive and the 3rd party insurance.

Because comprehensive insurance provides coverage for all kinds of risks, it tends to be the most expensive option.

Naturally, shopping around and comparing offers will give you access to more affordable quotes but a general rule of thumb is that the 3rd party car insurance is the more affordable option of the two.

Younger drivers that have limited financial resources will often opt for third party property, fire and theft insurance because it enables them to drive the car and be confident about the coverage without spending excessively high amounts on it.

Compare third party car insurance companies

With more than 100 insurance companies offering comprehensive automotive coverage it becomes quite a challenge to compare third party insurers.

Different insurance providers are also going to have their own unique policies and terms. Granted, there is only a finite number of service providers in the Australian market. So, the number of policy quotes a driver can review is not going to go on into infinity.

Those willing to take the time out to acquire a decent number of quotes and also take the time to review them likely will find the best possible policy.

The information to be provided is nothing out of the ordinary. The insurance companies are going to need basic information about the owner, drivers, and the make, model, and year of the vehicle. The driving record of the insured likely is going to play the largest role. Safe drivers are less likely to get into an accident.

Below is a list of the top 7 3rd party vehicle insurance companies in Australia to help you make your choice.


SGIO offers third party car insurance that covers damages caused to another person’s car or property by even uninsured drivers where you are not at fault. Its basic level of protection includes $5,000 coverage and additional $10,000 coverage if your car is stolen or damaged by fire.

SGIO offers lifetime guarantee for the workmanship of authorized repairs and is a company that has decades of experience insuring Western Australians, right back to the 1926 Goldfields. The company is today one of the leading insurance providers of the state.


Allianz Australia Limited offers a range of insurance and risk management products and services with about four thousand staff and billions in combined income. The company is one of Australia’s leading general insurers with over two million policy holders. Their 3rd party policy covers up to $3,000 for damaged caused to or by your car to other property.

QBE Insurance Australia

QBE Insurance Australia is a leading global insurer operating in key global insurance markets. Its head office is in Sydney and has branches in 52 countries and 50 offices in Australia. Its third party policy covers your car from fire, theft and damage to another person’s property or car.

HBF Australia

HBF Australia offers a large range of insurances, including car, health, home and boat insurance. The company focuses on providing excellent services and low premiums. Their policy provides a maximum of $5,000 which protects your vehicle against fire, theft and damage or loss to another person’s vehicle or property because of fire or theft. It also covers towing or transport of vehicle, re-coding of locks and barrels and emergency or temporary repairs.

Coles Insurance

Coles Insurance offers third party insurance that provides great protection from disasters like theft, fire and damage to other people’s property. Its benefits include a maximum of $3,000 as coverage for damage caused by uninsured drivers, lifetime guarantee on repairs and emergency towing costs.


Apia is a leading insurance company in Australia with more than 25 years of experience in the field. Its car insurance policy with 3rd party protection provides compensation for injuries in motor vehicle accidents.


NRMA insurance is a provider for various forms of insurance like home, car, motorcycle and life insurance. Their third party policy offers basic level of protection for damage caused to someone else’s car or property and a maximum of $5000 coverage for damage caused to your car by uninsured drivers.

Third party vehicle insurance quiz

Changes to coverage

Some areas are implementing changes, in 2014, individuals who suffer serious injuries in a motor vehicle accident may receive lifetime treatment, support and care for unrecoverable injuries.

Third party car insurance is mandatory insurance. Maintaining coverage is important. There are penalties for uninsured vehicles. Traffic cameras, are designed to not only provide red-light, safe-T, and speed images but to also detect vehicles that are uninsured.

Insurance is mandatory for any vehicle if you plan to drive it anywhere. It is important that you maintain the necessary coverage to ensure that you are protected in case you are found to be at fault for a motor vehicle accident.

This type of insurance will provide you with a portion of the coverage you need. It helps to provide for the injuries and treatment of an injured party other than the driver of the at fault vehicle. It provides for other expenses as well.

Understanding your coverage is important to ensuring you know what you are protected from and what your rights are should you be found at fault for an accident.

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