If you’re a Victorian driver exploring your coverage options, RACV third party insurance is likely on your radar. Third party policies offer a more affordable alternative to comprehensive cover, protecting you against liability for damage to other people’s property, without the higher premiums that come with full protection.
But what exactly does RACV’s third party cover include? What are the costs, limits, and exclusions you should know about before committing? These are the questions that matter when you’re comparing policies and trying to get genuine value for your money.
At National Cover, we help Australians navigate their motor insurance options every day. In this guide, we break down RACV’s third party insurance offerings, including Third Party Property Damage and Third Party Fire & Theft, so you can make an informed decision. We’ll cover what’s included, what it costs, and how it stacks up against alternatives in the market.
What RACV third party insurance covers
RACV offers two levels of third party insurance to suit different needs and budgets. Both options protect you when you cause damage to someone else’s vehicle or property, but the Third Party Fire & Theft policy adds extra protection for your own car in specific circumstances. Understanding the difference helps you choose the right level of cover without paying for features you don’t need.
Third Party Property Damage
This is RACV’s entry-level option, and it covers the damage you cause to other people’s vehicles and property when you’re at fault. If you reverse into another car at the shops or accidentally collide with someone’s fence, your policy pays for their repairs or replacement costs. RACV typically covers up to $20 million in property damage claims, which protects you from significant financial liability.
Your policy also includes legal liability cover for third party personal injury claims that arise from your vehicle use. This protection extends beyond just property, giving you peace of mind in serious accident scenarios.
Third Party Fire & Theft
When you upgrade to RACV’s Third Party Fire & Theft policy, you get all the property damage protection mentioned above, plus additional cover for your own vehicle in specific situations. Your car is protected if it’s stolen and not recovered, or if it’s damaged by fire (whether accidental or deliberate). This policy also covers attempted theft damage to your vehicle, such as broken windows or forced locks.
"Fire and theft cover bridges the gap between basic third party protection and comprehensive insurance, giving you targeted protection for high-risk events without the full premium."
RACV typically sets a market value limit for fire and theft claims, meaning you’ll receive your car’s current market worth, not what you originally paid for it.
What it does not cover and common exclusions
RACV third party insurance focuses on protecting others from damage you cause, but it leaves significant gaps in your own protection. Understanding these exclusions helps you avoid unexpected out-of-pocket costs when you need to make a claim. The policy clearly defines what situations and types of damage fall outside your cover, so you know exactly where your financial responsibility begins.
Your own vehicle damage
Your policy does not cover accidental damage to your own car in most situations. If you’re at fault in a collision, reverse into a pole, or scrape another vehicle, you pay for your own repairs regardless of the cost. This exclusion applies to all at-fault incidents unless you hold Third Party Fire & Theft cover, which only adds protection for fire and theft events.
"Third party policies protect others, not you. Your own repair costs remain your responsibility in everyday accidents."
Wear and tear, mechanical breakdowns, and gradual deterioration also sit outside your cover. Your policy responds to sudden, unexpected events involving third parties, not ongoing maintenance issues.
Driver and incident exclusions
RACV excludes claims when unlicensed or unauthorised drivers operate your vehicle. If someone without a valid licence causes an accident in your car, you face the full liability yourself. The policy also excludes deliberate acts, racing, speed contests, and using your vehicle outside its registered purpose.
How it compares with CTP and other policy types
Understanding the differences between insurance types helps you build the right protection stack for your situation. RACV third party insurance sits in a distinct category from both mandatory CTP cover and comprehensive policies, each serving different purposes in your overall vehicle protection strategy. You need to know where each type fits to avoid coverage gaps or unnecessary duplication.
CTP insurance operates separately
Your Compulsory Third Party (CTP) insurance covers injuries to other people in accidents, not property damage. Victoria requires CTP as part of your vehicle registration, and you purchase it through the state’s Transport Accident Commission (TAC), not through RACV. This cover handles medical costs, lost wages, and care expenses for injured parties, regardless of who caused the accident.
RACV’s third party policies complement CTP by covering property damage that CTP excludes. When you damage someone’s car or fence, your RACV policy responds, while CTP handles their injury costs.
Comprehensive cover provides full protection
Comprehensive insurance protects your own vehicle in all situations, including at-fault accidents, weather damage, and vandalism. You pay higher premiums for this complete protection compared to third party options. RACV’s third party policies cost significantly less but leave you exposed for your own repair bills when you cause an accident.
How much it costs in 2026 and what affects price
RACV third party insurance premiums vary significantly based on your individual circumstances and the level of cover you choose. Third Party Property Damage policies typically start from around $200 to $400 annually for basic cover, while Third Party Fire & Theft policies range from approximately $300 to $600 per year. Your specific quote depends on multiple factors that insurers assess to calculate your risk profile and potential claim costs.
Typical price ranges for 2026
Third Party Property Damage represents the most affordable option in RACV’s range, with many Victorian drivers paying between $250 and $450 depending on their vehicle and circumstances. Fire & Theft cover adds roughly $100 to $200 to your annual premium, reflecting the additional protection for your own vehicle in specific events.
"Your premium reflects your individual risk profile, not just the policy type you choose."
Key factors that influence your premium
RACV assesses several elements when calculating your racv third party insurance cost. Your age and driving history significantly impact pricing, with younger drivers and those holding recent claims typically paying more. The vehicle’s make, model, and value also matter, particularly for Fire & Theft policies where your car’s worth determines potential claim costs. Your postcode influences premiums based on local theft rates and accident statistics.
How to get a quote and make a claim
RACV provides straightforward processes for both obtaining quotes and lodging claims, designed to minimise hassle when you need them. You can complete most tasks online or over the phone, with support available when you need guidance through either process. Understanding these steps before you purchase racv third party insurance helps you move quickly when time matters.
Getting your RACV quote
You access quotes through RACV’s online platform or by calling their team directly on 13 RACV (13 7228). The online system asks for your vehicle details, registration number, driver information, and coverage preferences. You receive your quote immediately in most cases, allowing you to compare prices and adjust your excess to find the right balance between premium and out-of-pocket costs.
RACV typically requires your licence details and claims history to calculate accurate pricing. You can purchase cover immediately after accepting your quote, with policies often starting the same day or at a future date you specify.
Lodging a claim when you need to
When an incident occurs, you report claims through RACV’s claims hotline or online portal as soon as possible. You need to provide accident details, photos of damage, and third party contact information if available. RACV assigns a claims consultant who guides you through the assessment process and handles communication with other parties involved.
"Quick claim lodgement helps RACV protect your interests and resolve matters faster."
Key takeaways and next steps
RACV third party insurance provides affordable protection against liability for damage you cause to others, with two distinct policy options to suit different budgets and needs. Third Party Property Damage covers up to $20 million in damage to other vehicles and property, while Fire & Theft adds targeted protection for your own car against theft and fire events. You pay significantly less than comprehensive cover, but you remain fully responsible for your own repair costs in at-fault accidents and everyday incidents.
Before you commit to any policy, compare your options beyond what RACV offers. At National Cover, we specialise in competitive motor insurance rates across all policy types, including third party cover. Our price-beat guarantee ensures you get the lowest premiums available without sacrificing protection quality. Get a quote from National Cover today and discover how much you could save on your car insurance.
