Third Party Property Damage cover for your car is very limited but it’s also the cheaper option for car insurance.
Third Party Property Damage car insurance can cover damage you cause to someone else’s vehicle or property in an accident.
Typically, Third Party Property Damage won’t cover damage to your vehicle; for that kind of cover, you’ll need Third Party Fire and Theft insurance or a higher level of cover.
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Last updated 21/02/2024
Written by Kenneth Young
Reviewed by Adrian Taylor
Third Party Property Damage is an optional type of car insurance product that covers you if you’re responsible for a car accident and damage someone else’s property. It’s a lower level of cover than other policies (such as Third Party Fire and Theft or Comprehensive car insurance), but it’s a more affordable option.
Third Party Property Damage is the most basic type of car insurance policy which can typically cover the damage you cause to someone else’s property or vehicle. With some insurers, you may have limited cover for your car if it’s had accidental damage in a not-at fault accident with an uninsured vehicle. To see if you have any extra limited protections under the policy, you can check the relevant Product Disclosure Statement (PDS).
Having at least Third Party Property Damage (TPPD) cover for your vehicle can be worth it when you consider the costs you could incur if you damage someone else’s car or property. It can be very expensive to fix and having some level of insurance could provide you with valuable protection.
When deciding which policy to take out, here are a few factors for you to consider:
There are some things Third Party Property Damage insurance doesn’t include in its cover. Depending on your insurer, some of these exclusions could be:
You may also not have access to optional extras and benefits such as roadside assistance, towing assistance after a breakdown or a hire car while yours is being repaired or replaced. Keep in mind that higher levels of insurance can provide cover for the instances above.
If someone hits your car, the damages sustained are usually covered by the at-fault driver’s insurance. While Third Party Property Damage cover provides liability cover if you damage other people’s property, it will not cover your own vehicle; instead, your claim will be taken on by the other driver’s insurance.
However, if your car was damaged by an uninsured driver in their own car, your Third Party Property Damage policy may cover you.
In this scenario, you typically won’t have to pay an excess. You will need to provide details about the other driver (like their name, contact information and licence number) so they can be identified.
The price of your car insurance policy is determined by several elements. These may include:
You might be able to reduce the price of your premiums depending on the choices your insurer offers. These could include:
Always check the PDS and policy documents of any insurance policy to understand the full details of your cover before you take out a new policy.
No, Third Party Property Damage insurance isn’t the same as Compulsory Third Party insurance (CTP, or Green Slip insurance in NSW), but it’s easy to get them confused.
CTP insurance only covers you when you cause injury or death to someone in an accident that’s deemed your fault and is a mandatory requirement for all Australian registered cars. Third Party Property Damage insurance, on the other hand, is an optional insurance product that provides legal liability cover for any damage you cause to someone’s property if you’re at fault for an accident.
Some Australian states and territories allow you to choose your CTP insurer, while others don’t. In contrast, you can compare and choose your Third Party Property Damage insurance provider using our free comparison service.
You will likely have to pay a basic excess when you make an insurance claim on your Third Party Property Damage policy. Depending on the circumstances of the incident, you might need to pay an additional excess on top of the basic one.
For example, if the driver was under 25 or not listed on the policy, you may need to pay a young driver or unlisted driver excess as well.
Third Party Property Damage usually does not cover towing costs for your vehicle, but it may cover towing costs for any other party involved in an accident where you damaged their car and were found to be at fault.
Our Executive General Manager of General Insurance, Adrian Taylor, knows that there can be a bit of confusion between Third Party Property Damage (TPPD) and other car insurance policies like Third Party Fire and Theft (TPFT) – so he works to help ensure drivers have got the facts.
Adrian has over 13 years’ experience in the financial services industry. He helps review general insurance content on Compare the Market to ensure it accurately breaks down complex insurance topics.
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