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Third party car insurance: RACV Third Party Property Damage and Fire and Theft Car Insurance explained
RACV Car Insurance offers two third party car insurance options: Third Party Property Damage and Third Party Fire and Theft. Here’s how they differ, what they may cover, and how to decide which level of cover may suit your car, budget and circumstances.
RACV Third Party Property Damage and RACV Third Party Fire and Theft Car Insurance are designed for drivers who want cover for damage they may cause to other people’s vehicles or property, without the broader protection included in comprehensive car insurance.
The main difference is the level of cover for your own car. Third Party Property Damage is the more basic option, while Third Party Fire and Theft can also help cover your car if it is stolen or damaged by fire.
Before choosing a policy, it’s worth considering the value of your car, how much risk you’re comfortable taking on, your budget, and whether you want protection for theft or fire damage.
This article explains how RACV Third Party Property Damage Car Insurance and RACV Third Party Fire and Theft Car Insurance compare, what each option may cover, and what to consider before choosing a level of cover.
More: Research and compare new and used cars, SUVs, utes and vans on sale today in Australia
A quick note on CTP insurance
CTP insurance is compulsory for registered vehicles. In Victoria, it is included in your registration costs as the Transport Accident Commission charge. It helps cover liability for injury or death caused to other road users, not damage to cars or property, and is separate from RACV Third Party Property Damage Car Insurance and RACV Third Party Fire and Theft Car Insurance.
More: Is car insurance compulsory in Australia?
RACV Car Insurance - third party car insurance options explained
| RACV Car Insurance third party options | |||
|---|---|---|---|
|
Third Party Property Damage Car Insurance |
Cover for accidental |
This policy generally does not cover accidental |
|
|
Third Party Fire and Theft Car Insurance |
|
This policy generally |
When comparing third party car insurance, consider whether you want cover if your vehicle is stolen.
What is RACV Third Party Property Damage Car Insurance?
RACV Third Party Property Damage Car Insurance is the more basic of the two options. It can help cover accidental damage you cause to another person’s car or property, reducing the risk of a large out-of-pocket cost after an at-fault incident.
The policy can include third party property damage cover, towing after an incident, up to $20 million in liability cover, and limited cover for your own car in some not-at-fault collisions where the at-fault driver is uninsured and their details are provided.
What is RACV Third Party Fire and Theft Car Insurance?
RACV Third Party Fire and Theft Car Insurance includes third party property damage cover, with added protection if your car is stolen or damaged by fire. It may suit drivers who want more than basic third party cover, but do not need the broader protection of comprehensive car insurance.
Depending on the policy, it can include cover after fire or theft up to the applicable limit, a hire car after theft, emergency transport and accommodation, emergency repairs, towing after an incident, up to $20 million in liability cover, and limited cover for your car in some not-at-fault collisions.
Third Party Property Damage vs Third Party Fire and Theft
The key difference between the two third party options is whether you want cover for theft or fire damage to your own car. Third Party Property Damage focuses on damage you cause to someone else’s car or property. Third Party Fire and Theft includes that third party property damage cover, plus fire and theft cover for your own car up to the applicable limit.
That makes Third Party Fire and Theft a step up from basic Third Party Property Damage cover, while still being different from comprehensive car insurance. Comprehensive cover may be more suitable if you want broader protection for your own vehicle.
The right car insurance cover comes down to your needs, budget and how much risk you’re comfortable taking on.
What is not usually covered by RACV Third Party Car Insurance?
RACV Third Party Car Insurance products do not provide the same level of protection as comprehensive car insurance. RACV Third Party Property Damage Car Insurance and RACV Third Party Fire and Theft Car Insurance generally do not cover damage to your own car if you are at fault in a collision. RACV Third Party Property Damage Car Insurance also generally does not cover loss or damage caused by fire or theft.
Other exclusions, limits and conditions apply, including for items such as a new replacement vehicle, some hire car costs, windscreen or glass damage, or damage outside the insured events listed in the policy.
Who might consider RACV Third Party Car Insurance?
RACV Third Party Car Insurance may suit drivers who want a lower-cost level of cover than comprehensive insurance and are comfortable carrying more risk for their own vehicle. It may be considered by people with older or lower-value cars, drivers who do not rely heavily on their car every day, or those who could afford to repair or replace their own car if needed.
It may not suit everyone. If your car is newer, higher value, financed, or essential for work, family or study, comprehensive insurance may provide broader protection. The right level of cover depends on your circumstances, budget and the risks you are prepared to take on.
How much does RACV Third Party Car Insurance Cost?
The cost of third party car insurance varies depending on factors such as your age and driving history, the car you drive, where it is kept, how it is used, your chosen excess and the level of cover selected. RACV Third Party Property Damage Car Insurance will typically cost less than RACV Third Party Fire and Theft Car Insurance because it provides a more limited level of cover.
When comparing policies, do not look at price alone. Check the policy limits, excess, exclusions, claims process and any included benefits. A cheaper policy may provide less cover when you need to make a claim.
How to choose between RACV Third Party Car Insurance options
Before choosing between RACV Car Insurance's third party options, consider the value of your car, whether you want cover if it is stolen or damaged by fire, how much you could afford to pay if your car was damaged, and whether comprehensive car insurance would better suit your needs. It is also worth comparing the product pages and policy documents so you understand the difference between basic and mid-level third party cover. That will help you decide which level of cover may suit your car, budget and needs.
Always read the Product Disclosure Statement, Target Market Determination and relevant policy documents before buying insurance. These documents explain what is covered, what is excluded, the limits that apply and whether the product is likely to suit your needs.
Third party car insurance FAQs
It depends on the type of third party cover. RACV Third Party Property Damage Car Insurance generally does not cover repairs to your own car if you are at fault in an accident. RACV Third Party Fire and Theft Car Insurance can cover your car if it is stolen or damaged by fire, but generally does not cover repairs after an at-fault collision.
RACV Third Party Property Damage Car Insurance generally does not cover theft of your car. RACV Third Party Fire and Theft Car Insurance can provide cover if your car is stolen.
RACV Third Party Property Damage Car Insurance generally does not cover fire damage to your own car. RACV Third Party Fire and Theft Car Insurance can provide cover if your car is damaged by fire.
Third party insurance may be enough if you mainly want cover for damage you cause to other people’s cars or property and are comfortable with less protection for your own vehicle. If you want broader cover for your car, comprehensive insurance may be more suitable.
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.
