You need car insurance to drive legally in Australia, but comprehensive policies can drain your budget fast. Premium costs often reach hundreds or thousands of dollars each year, leaving many drivers searching for cheaper alternatives. Third party car insurance offers the minimum legal protection you need while keeping your expenses under control. The real challenge lies in finding the cheapest third party car insurance that actually delivers when you need it, without hidden exclusions or gaps in coverage that surface only when you lodge a claim.
This guide breaks down seven insurance providers offering the most competitive third party policies in 2026. You’ll see exactly what each insurer covers, understand why their prices remain low, and discover which driver profiles get the best value from each option. We also share proven strategies to reduce your premium even further, from adjusting your excess amount to choosing annual payments over monthly instalments. Whether you drive occasionally or commute daily, you’ll find affordable protection that meets legal requirements without paying for coverage you don’t use.
1. National Cover
National Cover specialises in motor insurance across Australia, offering third party property damage policies that protect you from the financial burden of damaging someone else’s vehicle or property. Their approach combines competitive pricing with comprehensive support, using ASIC-licensed analysts and data-backed pricing research to deliver rates that consistently undercut competitors. You get access to 365-day customer support through phone or email, ensuring help arrives whenever you need guidance with your policy or claims process.
Key features and coverage
The third party property damage policy from National Cover protects you against legal liability for damage you cause to other people’s vehicles, property, or assets in a collision. Your coverage extends up to $20 million for property damage claims, providing substantial protection if you’re involved in a serious accident. National Cover processes claims through a streamlined email system where their dedicated team guides you through each step, from initial lodgement to final settlement. You receive support from professionals who understand the stress of accidents and work to resolve your claim efficiently without unnecessary delays.
Why it is cost-effective
National Cover maintains low premiums by leveraging advanced pricing research that identifies the most competitive rates in the market. Their team continuously analyses pricing data to ensure you’re not overpaying for basic liability coverage. The price-beat guarantee means they’ll match or exceed any lower quote you find from a competitor, giving you confidence that you’re securing the cheapest third party car insurance available. You avoid hidden fees or surprise charges at renewal time because National Cover builds transparent policies focused on delivering genuine value rather than padding costs with unnecessary extras.
"Smart pricing research and transparent policies help you save money without sacrificing the protection you need."
Best for
National Cover suits budget-conscious drivers who want reliable third party coverage without paying premium prices. You’ll benefit most if you drive an older vehicle where comprehensive insurance costs outweigh the car’s value, or if you simply want to meet legal requirements while keeping expenses minimal. Rideshare drivers, courier operators, and taxi drivers also find value here because National Cover understands commercial vehicle needs and offers specialised policies beyond standard private car coverage. The service works well for anyone who values responsive customer support alongside competitive pricing.
2. Budget Direct
Budget Direct operates as an online-only insurer that eliminates traditional overhead costs by cutting out middlemen and physical branches. Their third party property damage policy delivers essential coverage at reduced rates, focusing on straightforward protection without complicated add-ons or unnecessary features. You interact with their team through digital channels and phone support, receiving quick quotes and streamlined policy management that keeps administrative costs minimal and passes those savings directly to you.
Key features and coverage
Budget Direct’s third party property damage insurance covers damage costs when you’re legally liable for harming someone else’s vehicle or property in an accident. The policy provides up to $20 million in coverage for property damage claims, protecting your finances against substantial liability. You can add optional extras like hire car after an accident cover or excess-free windscreen replacement if you want additional protection beyond basic third party coverage. Their claims process operates through a dedicated team available via phone, with most straightforward claims processed within days rather than weeks.
Why it is cost-effective
The online-first model allows Budget Direct to maintain lower operating costs compared to traditional insurers with extensive branch networks. You pay less because they invest in efficient digital systems rather than expensive storefronts and large sales teams. No-frills policies mean you’re not subsidising features you don’t need, keeping premiums focused on actual liability protection. Their pricing algorithm uses your specific risk factors to calculate premiums, often resulting in competitive rates for drivers with clean records or lower-risk profiles.
"Online operations and streamlined processes translate directly into lower premiums for your third party coverage."
Best for
Budget Direct works well for digitally comfortable drivers who prefer managing insurance through online portals and mobile apps rather than face-to-face interactions. You’ll find good value here if you want cheapest third party car insurance without sacrificing reliable claims support or coverage quality. Younger drivers with limited budgets often benefit from Budget Direct’s competitive pricing, particularly if they maintain clean driving records that qualify for lower risk assessments.
3. Bingle
Bingle operates as Suncorp’s digital-only insurance brand, stripping away traditional insurance complexity to offer straightforward third party property damage coverage through a fully online platform. Their no-frills approach eliminates the costs associated with physical offices and extensive sales networks, creating a lean operation that prioritizes speed and simplicity. You manage your entire policy through their website or mobile app, from getting quotes to lodging claims, with support available through phone or digital channels when you need assistance with your coverage.
Key features and coverage
Bingle’s third party property damage policy protects you when you’re legally responsible for damaging another person’s vehicle or property in an accident. Your coverage extends to $20 million for property damage liability, providing substantial protection against major claims. The policy includes cover for legal costs if someone takes action against you following an accident, helping you manage the financial burden of both repairs and potential legal proceedings. Claims processing happens through their streamlined digital system, where you submit details online and receive updates through your account dashboard or via email notifications.
Why it is cost-effective
Bingle maintains competitive pricing by operating exclusively online, cutting out the overhead expenses that traditional insurers absorb through branch networks and agent commissions. You benefit from transparent pricing that shows exactly what you’re paying for without hidden charges or complex policy structures. Their simplified product range means you’re not subsidising development costs for numerous policy variations, keeping premiums focused on essential third party coverage that meets legal requirements without extras you don’t need.
Best for
Bingle suits tech-savvy drivers who want cheapest third party car insurance through a modern, digital-first platform. You’ll appreciate their service if you’re comfortable managing insurance independently through online tools rather than speaking with agents. Cost-conscious millennials and younger drivers often find Bingle’s straightforward approach refreshing, particularly when they want basic liability protection without navigating complicated policy documents or dealing with traditional insurance processes.
4. AAMI
AAMI ranks among Australia’s most recognised insurers, offering third party property damage policies backed by decades of industry experience and a widespread network of repairers. Their third party coverage provides essential protection when you damage someone else’s vehicle or property, combining affordable premiums with the reliability of an established insurance brand. You access comprehensive claims support through multiple channels, including phone assistance and online management tools that simplify policy administration while maintaining the personal service many drivers prefer from traditional insurers.
Key features and coverage
AAMI’s third party property damage insurance covers your legal liability for damage you cause to other vehicles, property, or assets in an accident. Coverage extends to $20 million for property damage claims, protecting you against substantial financial exposure. The policy includes protection for towing costs up to a specified limit when your vehicle needs removal after an accident, plus legal costs if someone pursues action against you. Claims processing happens through AAMI’s established network of assessors and repairers, with dedicated phone support guiding you through each stage from initial lodgement to final settlement.
Why it is cost-effective
AAMI keeps third party premiums competitive through volume-based pricing that leverages their large customer base to negotiate better rates with suppliers and service providers. You benefit from loyalty discounts and multi-policy savings if you bundle insurance products, reducing your overall costs. Their pricing remains transparent with clear breakdowns of what you’re paying for, helping you find cheapest third party car insurance without sacrificing service quality or claims reliability.
"Established networks and volume pricing help AAMI deliver competitive rates with reliable service backing."
Best for
AAMI suits drivers who value brand recognition and prefer dealing with well-established insurers rather than newer digital-only providers. You’ll appreciate their service if you want the reassurance of a traditional insurer’s reputation while still accessing competitive third party rates.
5. Youi
Youi builds third party property damage policies around personalised risk assessment, asking detailed questions about your driving habits, vehicle storage, and individual circumstances to calculate premiums that reflect your specific situation. Their tailored approach means you’re not grouped with broad demographic categories but instead priced based on your actual risk profile. You work with dedicated consultants who handle your policy from quote through to claims, providing a more personal service than most digital-only insurers while maintaining competitive rates for drivers who fit their preferred risk criteria.
Key features and coverage
Youi’s third party property damage insurance protects you when you’re legally liable for damaging another person’s vehicle or property in an accident. The policy extends coverage to $20 million for property damage claims, matching industry standards for liability protection. You receive personalised service through your allocated consultant who becomes familiar with your policy details and circumstances, making claims processing and policy adjustments smoother than dealing with different representatives each time. Their claims team provides 24/7 phone support when accidents happen, ensuring you can report incidents and receive guidance regardless of when they occur.
Why it is cost-effective
Youi’s detailed assessment process identifies lower-risk drivers who qualify for reduced premiums based on factors like secure parking, low annual kilometres, and responsible driving history. You pay for coverage tailored to your actual circumstances rather than broad demographic averages, potentially securing cheapest third party car insurance if your risk profile matches their criteria. Their pricing rewards safety-conscious behaviour such as installing security devices or parking in locked garages, translating responsible ownership directly into premium savings.
Best for
Youi suits drivers with clean records who store vehicles securely and drive moderate annual distances. You’ll benefit if you prefer speaking with dedicated consultants rather than navigating automated systems or online-only platforms.
6. Allianz
Allianz operates as one of the world’s largest insurance groups, bringing global resources and financial strength to their Australian third party property damage policies. Their third party coverage combines competitive pricing with the stability of an internationally recognised brand, offering protection when you damage someone else’s vehicle or property. You access comprehensive support through their established claims network and customer service team, benefiting from decades of insurance expertise while maintaining affordable premiums that compete with domestic providers.
Key features and coverage
Allianz’s third party property damage insurance protects you against legal liability when you damage another person’s vehicle, property, or assets in an accident. Your coverage extends to $20 million for property damage claims, providing substantial protection against major incidents. The policy includes cover for legal costs if someone takes action against you following an accident, plus emergency towing expenses when your vehicle needs removal from the accident scene. Claims processing happens through Allianz’s network of assessors and repairers, with phone support available to guide you through documentation requirements and settlement timelines.
Why it is cost-effective
Allianz maintains competitive rates through global purchasing power that allows them to negotiate better deals with suppliers and service providers. You benefit from their international scale translating into lower operational costs per policy. Their pricing includes discounts for safe drivers and additional savings when you bundle multiple insurance products, helping you secure cheapest third party car insurance while accessing their extensive resources and financial backing.
Best for
Allianz suits drivers seeking financial security from a globally recognised insurer while maintaining budget-friendly premiums. You’ll appreciate their service if you want the reassurance of dealing with a major international brand.
7. Apia
Apia specialises in insurance for Australians over 50, offering third party property damage policies designed specifically for mature drivers with established driving histories. Their age-focused approach allows them to price policies based on the typically lower risk profile of experienced drivers, often resulting in more competitive premiums than general insurers offer this demographic. You access dedicated customer service from representatives who understand the needs and preferences of mature drivers, providing personal attention through phone support rather than purely digital channels that some older Australians find less convenient.
Key features and coverage
Apia’s third party property damage insurance protects you when you’re legally liable for damaging another person’s vehicle or property in an accident. Coverage extends to $20 million for property damage claims, matching industry standards for substantial liability protection. The policy includes protection for legal costs if someone pursues action against you following an incident, plus coverage for damage to your vehicle when it’s being towed after an accident. Claims processing happens through Apia’s experienced team who provide personalised support via phone, guiding you through documentation and settlement with patience and clarity.
Why it is cost-effective
Apia maintains competitive rates for mature drivers by recognising that over-50s typically present lower risk due to decades of driving experience and more cautious behaviour. You benefit from age-based pricing that rewards your experience rather than lumping you into broad categories. Their loyalty rewards program offers discounts that increase with policy tenure, making cheapest third party car insurance even more affordable over time.
"Experience-based pricing means mature drivers pay premiums that reflect their actual low-risk profile."
Best for
Apia suits drivers over 50 who want insurers that understand and cater to their demographic. You’ll appreciate their service if you prefer phone-based support and personal attention over automated digital systems.
How to lower your car insurance premium
Finding the cheapest third party car insurance starts with comparing quotes, but you can reduce premiums further by adjusting specific policy elements that directly affect your risk profile. Simple changes to your excess amount, driver restrictions, and payment frequency often deliver immediate savings without reducing your actual coverage. These adjustments work across most insurers, allowing you to lower costs regardless of which provider you choose from the options above.
Choose a higher excess
Increasing your policy excess reduces your premium by demonstrating that you’re willing to cover more of any claim costs yourself. Insurers view higher excess amounts as a sign you’ll drive more carefully because you have greater financial responsibility if an accident occurs. You might save $100 to $300 annually by raising your excess from $500 to $1,000, though you need enough savings set aside to cover that higher amount if you lodge a claim. Balance the premium savings against your ability to pay the excess amount comfortably when needed.
Restrict the age of drivers
Limiting coverage to drivers over 25 typically lowers premiums because younger drivers statistically cause more accidents. Your insurer reduces rates when you exclude higher-risk age groups from your policy, reflecting the decreased likelihood of claims. This strategy works best if you’re the sole driver or if all regular users of your vehicle fall within the restricted age bracket. Ensure you understand the policy implications before lending your car to anyone outside the nominated age range.
Pay your premium annually
Choosing annual payment instead of monthly instalments eliminates interest charges and administrative fees that insurers add to payment plans. You save between 5% and 15% by paying your full premium upfront rather than spreading costs across twelve months. Setting aside money throughout the year makes the annual lump sum manageable without straining your budget.
"Annual payments remove hidden interest charges that monthly instalments quietly add to your total cost."
Final thoughts on cheap insurance
Third party property damage insurance delivers legal compliance and financial protection without the premium costs of comprehensive policies. You’ve seen seven providers offering competitive rates in 2026, each with unique strengths that suit different driver profiles and preferences. The cheapest third party car insurance emerges when you match your specific circumstances to the right insurer, whether that means Budget Direct’s online efficiency, National Cover’s price-beat guarantee, or Apia’s age-focused discounts for mature drivers.
Premium reduction strategies work across all providers, from increasing your excess amount to restricting driver ages or choosing annual payments over monthly instalments. Small adjustments to these policy elements translate into meaningful savings that compound year after year. Your final cost depends on comparing quotes from multiple insurers and applying the strategies that fit your budget and risk tolerance.
Ready to secure affordable third party coverage that protects your finances without straining your budget? Compare quotes from National Cover today and discover how much you can save on reliable motor insurance.
