What’s Third Party Property Damage Car Insurance?

Third Party Property Damage insurance is the most affordable, basic cover offered by RACV for unintentional damage you cause to another person’s vehicle or property, such as colliding with another car or hitting someone’s fence.

What’s the difference between Third Party Property Damage and Third Party Fire and Theft?

Third Party Property Damage covers you for unintentional damage you cause to another person’s vehicle or property. Third Party Fire and Theft not only covers you for unintentional damage you cause to another person’s vehicle or property, it also provides financial protection if:your car is damaged by a fireyour car is stolenyour car was damaged as a result of an attempted theft.Third Party Fire and Theft is covered to a maximum market value of $10,000. With Third Party insurance, damage to your own car is generally an out of pocket expense. However, our Third Party levels of cover can provide some additional cover if you have an not at fault incident uninsured driver and you can provide the uninsured driver's details, up to a maximum market value of $5,000.This is only a summary of the differences between RACV Car Insurance policies. Refer to the relevant Product Disclosure Statement for specific terms, conditions, limitations and exclusions.

What is agreed value and market value?

Market Value is an assessment of the value of the vehicle at the time of the incident based on its age and condition. Because it is not a fixed amount, you won’t know how much compensation you’ll receive if you need to make a claim. Agreed value is the amount you will be reimbursed in the event of a claim where your car is in which your car is declared a total loss and is agreed on by you (the car owner) and the insurer. The agreed value amount is agreed upon by the car owner and their insurer. Because it is a fixed amount, it provides more certainty on what compensation you can expect if your car is considered a write off after an accident. You can only choose between agreed and market value if you purchase a Comprehensive Car Insurance policy.

Does this policy cover anyone who has permission to drive the vehicle?

Yes, so long as they have a valid driver’s license. Additional excesses may apply for drivers under 25 and inexperienced drivers.

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What's covered

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Frequently asked questions

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Good value cover for damage to others' property

Plus, up to $5,000 limited cover for your own car in not-at-fault collisions. This policy won't cover you if you accidentally damage your own car.

Any driver, covered

Any licensed driver who meets policy conditions will be covered when driving your car.^

Third party accidental damage cover

You’re covered if you accidentally damage another person’s car or property.

Towing after an incident

Covers the cost of towing to a repairer or safe place, whichever’s closer.

Help when you need it

Our team is available from 7am – 11pm every day for help with your quote and general enquiries.

Call 13 72 28

Award-winning car insurance

2025 winner of several Finder Customer Satisfaction Awards for Victoria, including Most Trusted and Most Loved.^†

2025 winner of WeMoney’s Best for Member Benefits Car Insurance.

Finder 2025 award for most trusted car insurance, Victoria.

Finder 2025 award for most loved car insurance, Victoria.

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What's included with Third Party Property Damage

Included
Not included

Cover for accidental damage to third parties

You’re covered if you accidentally damage another person’s car or property.

Towing if you’re involved in an incident

Covers the cost of towing to a repairer or safe place, whichever’s closer.

Up to $20 million in liability cover

For claims against you for loss or damage to someone else’s vehicle or property.

Up to $5,000 in not-at-fault collisions (limited cover)

For damage to your car if you’re not at fault in a collision and you provide the details of the at-fault driver. The at-fault driver must be uninsured.

^{For full details of what is and isn’t covered, see the Product Disclosure Statement. For further details on how we calculate your premium, excess levels and discounts, see the Premium, Excess and Discounts guide (PED).}

Here are some examples of what’s not covered by RACV Third Party Property Damage Insurance.

Cover for accidental damage to your vehicle, or damage from a fire or theft.

Cover for vehicle repairs if you're at fault in a collision.

A hire car after any incident (including accidents, thefts or attempted theft).

A new replacement vehicle if your car is a total loss.

Cover for windscreen, sunroof and glass damage after an incident.

Cover for personal items.

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This is a summary only. For a full list of inclusions, conditions, limits and exclusions, read the Product Disclosure Statement.

Frequently asked questions

With RACV Insurance, you can insure your car for the market value or agreed value, depending on your policy.

Market value 
This is an assessment of your vehicle’s value at the time of an incident you’re making a claim for. It considers local market prices and the age and condition of your vehicle. You’ll get market value with these policies:

Comprehensive (choice of market or agreed value)
Third Party Fire and Theft
Third Party Property Damage

Agreed value 
This is how much RACV Insurance agrees to insure your vehicle for during the term of your policy. You can choose from within a value range. You’ll get agreed value with these policies:

Complete Care®
Comprehensive (choice of agreed or market value)

Renewing your policy 
RACV Insurance considers the changes in your vehicles agreed value using local market values. Check your renewal notice for any changes.

For more information on what’s included in your agreed or market value, check the Product Disclosure Statement.

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No matter who’s driving, RACV Motor Insurance covers all licensed drivers provided they meet policy conditions and have your permission to drive your vehicle.^

You don’t need to list all additional drivers using your vehicle, but it’s worth considering based on how frequently others drive it and any additional excesses that may apply to unlisted drivers.

Your car insurance premium may change if another driver is listed on your policy.

If an unlisted driver is found at fault for an incident while driving your vehicle, you may have to pay an additional excess on top of your basic excess.

For further details on excess charges based on your policy, read the Premium, Excesses and Discounts Guide (PED ).

Add drivers to your policy in the RACV App

Download the RACV App
Tap on ‘my products’
Tap on your policy and then ‘view and manage policy’
Under ‘Manage your policy’ tap ‘add, remove or edit drivers’
Tap ‘edit’ and update driver details.

Add drivers to your policy in your online account

Log in to your online account
Click on your policy
Scroll to ‘the drivers’ section
Click ‘edit’ and update driver details.

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^{^ Provided they meet policy conditions and have your permission to drive your vehicle. Additional excess applies to drivers under 25 or with less than 2 years' driving experience.}

^{The information provided is general advice only. Before making any decisions please consider your own circumstances and the Product Disclosure Statement and Target Market Determinations. For copies, visit racv.com.au. As distributor, RACV Insurance Services Pty Ltd AFS Licence No. 230039 receives commission for each policy sold or renewed. Product(s) issued by Insurance Manufacturers of Australia Pty Ltd ABN 93 004 208 084 AFS Licence No. 227678.}

Third Party Property Damage Car Insurance

Good value cover for damage to others' property

Any driver, covered

Third party accidental damage cover

Towing after an incident

Help when you need it

Award-winning car insurance

What's included with Third Party Property Damage

Cover for accidental damage to third parties

Towing if you’re involved in an incident

Up to $20 million in liability cover

Up to $5,000 in not-at-fault collisions (limited cover)

Compare third party car insurance

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Third Party Property Damage

Third Party Fire and Theft

Frequently asked questions

How much can I insure my car for?

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