If you’re looking for a car insurance policy that offers some protection for your car but is more affordable than comprehensive insurance, a third-party fire and theft car insurance policy may be your best bet. This kind of policy is also called third-party property fire and theft car insurance.  It pays for any third-party costs you are liable for when you cause an accident, including hospitalisation and treatment costs for injuries, and repair costs for damaged cars and property. Damage to your own vehicle in such an accident will likely not be covered by this policy, but loss due to fire or theft is.

What does third-party fire and theft car insurance cover?

As a car owner, it’s not uncommon to worry about accidents while on the road, even if you consider yourself to be a responsible driver. Plus, there is also the concern that your car may get stolen. One answer to these common headaches is to buy a third-party fire and theft car insurance policy. Here’s a quick list of the coverage included in this policy by most insurers:

  • If you’re at fault for an accident, treatment for people injured and repairs for their cars or property is covered.
  • In an accident caused by a hit-and-run, repairs for your car may be partially covered.
  • The cost of emergency transport or renting a car after an accident and getting your car towed may also be covered.
  • If your car catches fire or is stolen, it is covered for its market value. Any damage caused to your car in an attempted theft may also be covered.

You should also know the exclusions of the policy, as this can help you make a thorough third-party property fire and theft car insurance comparison. Some standard exclusions are:

  • Damage to your car in either an accident caused by you or a hit-and-run where the at-fault driver cannot be found
  • Glass breakage or other damage caused by vandals and animal attacks, or through hitting a wild animal
  • Loss or damage caused by floods, storms, hail, earthquakes and any other natural disaster (this policy only covers bushfires)

Is third-party fire and theft insurance worth it?

Buying third-party fire and theft insurance can be seen as a compromise between paying a lot for car insurance and getting adequate coverage for your car. You could be living in a neighbourhood with a high crime rate, or with a high Bushfire Attack Level (BAL) rating. You may already have to pay a high car insurance premium and might be tempted to pay a little more and get some coverage for your car as well. In this case, you can compare third-party fire and theft car insurance quotes and see, for instance, the difference your location makes to the cost of car insurance.

However, you can opt for third-party fire and theft insurance for other reasons than where you live. For instance, having a car may be essential for you, in which case renting a car at no extra cost when your car is damaged can be an important factor in choosing car insurance. Alternatively, you may want to keep the cost of car insurance low. Before buying third-party fire and theft car insurance, you can compare prices with comprehensive car insurance and third-party property damage insurance. You’ll probably find that what you’ll pay for third-party fire and theft car insurance is closer to third-party property damage insurance.

How to compare third-party fire and theft car insurance quotes

A general thumb rule when buying car insurance is to compare quotes from different providers, which can help you find a suitable policy for an affordable price. If you prefer to compare car insurance quotes online, remember to provide your gender, age and postcode to get an accurate quote. When it comes to third-party fire and theft car insurance, you may need to check if certain items such as renting a car are optional add-ons requiring you to pay an additional fee. You should also look at the insurer’s conditions, which can stipulate where you park your car or install security devices to prevent theft.

To get the most affordable third-party fire and theft car insurance policy, you may also want to see if you are eligible for any discounts based on your driving history or by agreeing to additional terms set by the insurance provider. For instance, if you haven’t filed an insurance claim in the past few years, you may be eligible for a no-claims discount. You could also ensure that you don’t keep any expensive items in your car when it is parked to reduce the insurer’s liability in case of car theft.