When it comes to insurance policies, there are a lot of parties – these aren’t the backyard BBQ variety. ‘Third party’ refers to the person or persons, who may be indirectly involved but are not primary to, or directly involved in, the arrangement or insurance contract. Having third party property insurance covers your legal liability for third party property damage (including cars, pedestrians and cyclists) for an accident that you caused. Some third party insurance providers, as an additional extra, will also cover your property for theft and fire.
Unlike Third Party Property insurance, CTP is a legal requirement for all motor vehicles in Australia. In NSW and the ACT this may be referred to as a ‘green slip’. CTP covers any personal injuries or death you cause to another person as a result of an accident. Having both CTP and third party property insurance covers you for any claims for personal injury to another person and property damage caused by you.
If you have a second hand car you may think that the premiums for comprehensive insurance are not worth it. Think about it this way: if you are dependent on your car, could you afford to fix it if your vehicle sustained extensive damage or afford a new car if it was written off? No one plans to be involved in an accident, but in the event that you are at fault, being comprehensively insured can help to deliver peace of mind to cover damage to your own car, as well as the other driver.
If you know that you can’t live without third party property insurance, but are worried about the cost there are things that you can do to reduce your premiums:
Be a safe driver: If you have no previous claims or history of reckless or dangerous driving you will be considered less of a risk to insure helping to reduce your premiums.
Choose your excess: The excess is the initial amount of the claim you pay to the insurer. Choosing to pay a higher excess in the event of an accident will help to lower your premiums.
Even if you don’t have comprehensive car insurance, third party property insurance may be worth considering.
Cover and benefits are subject to eligibility criteria and terms and conditions, including the limits and exclusions of the insurance policy. Any advice provided is general only and may not be right for you. Before you purchase this product you should carefully read the Car Insurance Product Disclosure Statement and consider the Target Market Determination to decide if it is right for you.
