Cost of Third Party Insurance in Australia: Prices, Quotes

Third party property car insurance is the cover that pays for damage you cause to other people’s cars and property when you’re at fault. It won’t repair your own vehicle, and it’s different from compulsory third party (CTP), which covers injuries to people. Think of it as a financial safety net if you reverse into a Tesla or take out someone’s fence — typically with high legal liability limits — without paying for full comprehensive cover.

This guide breaks down how much third party insurance usually costs in Australia and what drives the price you’re quoted. You’ll see typical price ranges, the factors that move your premium (age, car, postcode, driving history and use), and how costs vary by state and vehicle type. We’ll compare third party with CTP, third party fire and theft, and comprehensive, explain liability limits and excess options, and look at optional extras that can nudge the price up or down. If you drive for work — rideshare, delivery or business — we’ll outline what that means for premiums and cover. You’ll also get a step‑by‑step on getting quotes online, practical ways to save, sample price scenarios, monthly vs annual payments, how claims affect future costs, and what to know about switching providers.

What third party car insurance covers (and what it doesn’t)

Third party property car insurance covers the bill when you damage someone else’s stuff — their car, fence, garage or shopfront — if you’re at fault. It’s about legal liability for property only, usually with very high limits (for example, $20 million is common; some brands advertise $30 million). Knowing exactly what’s in and out of scope helps you judge value beyond the headline cost of third party insurance.

Here’s what’s typically covered:

Damage to other people’s property: Repair or replacement costs for vehicles and fixed property you hit.
Legal liability up to a set limit: High caps apply — often around $20m, and some policies cite $30m.

Extras you may see (varies by insurer):

Uninsured motorist benefit: Limited cover for your car (commonly $3,000–$5,000) if an uninsured driver hits you, usually when you’re not at fault and can provide their details.
Optional roadside assistance: Not standard; sometimes available as an add‑on or via a separate policy.

What it generally does not cover:

Damage to your own car: For your repairs, you’d need comprehensive cover.
Fire or theft losses: Only included on third party fire and theft policies.
Weather events: Storm, hail and flood are typically excluded on third party property policies.
Windscreen damage: Usually excluded on third party property cover.
Injuries to people: That’s what compulsory third party (CTP) insurance is for.

Always check the PDS for limits, conditions and exclusions before you buy.

Typical cost of third party car insurance in Australia

There’s no single “average” cost of third party property damage cover because premiums are personalised, but here’s the headline: it’s generally cheaper than comprehensive and, according to independent research, often more than half the price of a comprehensive policy. That means you can save versus full cover, but third party premiums are still meaningful and vary a lot between brands, so shopping around is essential.

What you’ll pay is driven by risk rather than your car’s value (since your car isn’t covered). Expect quotes to move based on your age and driving history, where the car is kept, the make/model and how the vehicle is used. Comparison benchmarks commonly use a NSW-based 30‑year‑old male driving a Toyota Corolla Ascent Sports to illustrate pricing, but your own quote can differ substantially once your profile is applied.

What you get for the money is high legal liability limits (commonly around $20 million, with some policies advertising $30 million) for damage you cause to other people’s cars and property. Some insurers include or offer a small “uninsured motorist” benefit (often $3,000–$5,000) if an uninsured driver hits you when you’re not at fault, which can influence price. Because features and pricing strategies differ by insurer, compare at least 4–5 quotes for a realistic view of the cost of third party insurance for your situation.

What affects the cost of third party insurance

Insurers price third party property cover on risk: how likely you are to damage someone else’s car or property and how large that bill could be. The cost of third party insurance isn’t tied to your car’s value; instead, it moves with your profile, your vehicle’s risk factors and the features you pick.

Here are the big drivers of price:

Age of drivers: Younger, less‑experienced drivers generally pay more.
Driving record: A clean history can lower premiums; prior claims or traffic infringements can increase them.
Where the car is kept: High‑risk postcodes (theft/accidents) and street parking often cost more than secure garaging.
Vehicle type and mods: High‑powered or commonly‑claimed‑on models, plus declared modifications and accessories, can lift premiums.
How and how much you drive: Higher annual kilometres and business use typically cost more; lighter usage can reduce premiums (some policies support usage‑based settings).
Named driver restrictions: Limiting cover to older drivers (e.g. 25+, 30+) can cut costs if you can safely exclude younger drivers.
Excess choice: Opting for a higher excess usually reduces your premium; make sure it’s affordable if you claim.
Included features and add‑ons: Benefits like an uninsured motorist cover amount or optional roadside assistance can change the price.
Discounts and renewals: First‑year sign‑up discounts can lower the upfront cost; premiums may change at renewal, so compare annually.

Location, driver age and vehicle choice interact strongly, so two similar drivers can see very different quotes. Next, we’ll show how costs typically vary by age, vehicle and state — and what that means for your budget.

How costs vary by age, vehicle and state

Two drivers with the same car can get very different quotes. That’s because insurers price third party property cover on risk. The cost of third party insurance shifts with who’s driving, what you drive and where it’s garaged. Understanding these levers helps you predict (and control) your premium.

Age and experience

Younger and less‑experienced drivers tend to attract higher premiums because they feature more in crash statistics. A clean driving record can ease the price over time, while recent claims or infringements usually push it up. If no one under a certain age will drive your car, restricting drivers by age can lower your premium; just make sure the restriction matches your real‑world use.

Vehicle choice and usage

Insurers look at the type of car and how it’s used. Lower‑powered, less‑expensive models often cost less to insure than high‑powered or commonly‑claimed‑on vehicles. Declared modifications and accessories can add loadings. Business, rideshare or frequent use typically costs more than light private use, while some products offer usage‑based settings (like pay‑as‑you‑drive) that can help lower premiums if you drive fewer kilometres.

State, postcode and parking

Where the car spends the night matters. Postcodes with higher theft or accident rates generally see higher premiums, and secure garaging can be cheaper than street parking. Many benchmark quotes use a NSW metro profile as a guide, but your state, suburb and parking arrangements can meaningfully shift your price.

Up next, we’ll compare third party with CTP, third party fire and theft, and comprehensive to help you choose the right level of cover.

Third party vs CTP vs third party fire and theft vs comprehensive

Choosing the right policy starts with knowing what each product actually covers. CTP (compulsory) is about injuries to people; third party property is about damage you cause to other people’s cars and property; third party fire and theft adds limited protection for your own car if it’s stolen or burned; comprehensive is the all‑rounder that also covers your car for accidental damage and severe weather. Price typically scales with cover breadth — third party is generally cheaper than comprehensive, but the trade‑off is limited protection.

CTP (Compulsory Third Party): Covers injuries or death to people from a car accident. It’s mandatory to register your vehicle. It does not cover property damage or your car.
Third Party Property Damage: Covers damage you cause to other people’s cars and property, usually with high legal liability limits (around $20m is common; some brands cite $30m). It doesn’t cover your own car. Some policies include or offer an uninsured motorist benefit (often $3,000–$5,000) if an uninsured driver hits you and you’re not at fault.
Third Party Fire and Theft: Everything in third party property, plus cover to repair or replace your car if it’s damaged by fire or stolen. It still won’t cover accidental damage to your car from a crash or weather events.
Comprehensive: Covers your legal liability and your own car for accidental damage, theft, fire and typically major weather events (e.g. storm, hail, flood), plus optional extras like windscreen or roadside on some policies. It’s the broadest — and usually the priciest — level of cover.

If you’re weighing the cost of third party insurance against these options, balance premium savings with how you’d handle repairs or replacement of your own vehicle after a crash or severe weather.

Legal liability limits and why they matter

Your legal liability limit is the maximum your insurer will pay for damage you cause to other people’s cars and property under a third party policy. It’s a big reason people buy this cover. Limits are typically very high — around $20 million is common in Australia, while some policies advertise $30 million (for example, CGU). When you compare the cost of third party insurance, the liability limit is one of the most important line items to check.

Why higher limits matter:

Expensive vehicles and property: Hitting a luxury car, multiple cars, or a building can rack up six‑figure bills fast.
Multi‑vehicle incidents: Chain collisions can multiply repair and recovery costs.
Public property damage: Poles, barriers and shopfronts can be costly to replace.

How to compare limits:

Prioritise adequacy over tiny savings: Don’t trade a substantial limit drop for a marginal premium cut.
Match your driving exposure: Dense city driving or high‑value areas can justify opting for higher limits.
Read the PDS: Confirm the stated limit and any related conditions before you buy.

A robust limit provides headroom for catastrophic claims and can be worth a small premium difference.

Excess options and how to reduce your premium

Your excess is the amount you contribute when you make a claim. Most third party policies come with a basic excess (the minimum you’ll pay), plus an optional voluntary excess you can raise to cut your premium. An extra age excess can apply if a young or inexperienced driver is involved in a claim, and depending on the provider, other excesses may apply. Choosing a higher excess can lower the cost of third party insurance, but make sure it remains affordable on claim day.

Your excess options

Basic excess: Mandatory minimum you pay on a claim.
Voluntary excess: Increase this to reduce your premium; weigh savings against the higher out‑of‑pocket risk.
Age/inexperienced driver excess: Often added when younger drivers are involved.

Quick ways to cut costs (beyond excess)

Restrict drivers by age: If suitable, exclude under‑25s/30s to lower risk and premium.
Drive fewer kilometres: If you don’t drive much, consider usage‑based options where available.
Improve where you park: Secure garaging can price better than street parking.
Trim non‑essentials: Only pay for features you’ll use; add roadside assistance separately if it’s cheaper.
Shop and switch: Compare 4–5 quotes and revisit annually; first‑year sign‑up discounts are common, renewals often rise.

Optional extras that can change your premium

Add-ons can tailor cover to how you drive, but they also shift the cost of third party insurance up or down. Because third party policies focus on damage to other people’s property, extras tend to be practical utilities or small protections for your own car. Pick only what you’ll genuinely use, and compare like‑for‑like when assessing quotes.

Uninsured motorist cover: Often included or optional; typically capped around $3,000–$5,000. Higher caps/features can lift premiums.
Roadside assistance: Sometimes an add‑on or bought separately. Expect roughly “from around $90 per year” with some brands; bundling can change the overall price.
Choice of repairer: Where offered, may add cost but gives you control when your car is repaired (relevant if an uninsured motorist benefit applies).
Higher liability limit: Some policies cite $30m versus the common $20m; more headroom can add a small premium load.
Not‑at‑fault replacement car and towing: Included by some providers; convenience features that can influence price.
Preferred repairer perks: Using the insurer’s network can unlock excess discounts or lifetime repair warranties, helping offset premiums with lower out‑of‑pocket costs.

Business use, rideshare and delivery: costs and cover

If you drive for work — carrying passengers, delivering food/parcels, or using your vehicle for business calls — insurers treat you as higher risk than private-only drivers. Standard third party policies can exclude paid work, so you must disclose business, rideshare or delivery use when you get a quote. Expect premiums to be higher due to increased kilometres, peak-hour exposure and claim frequency, but you’ll get cover that actually responds if something goes wrong.

Rideshare and taxi

Using your car for Uber, Ola, DiDi or taxi work often needs a rideshare/taxi‑specific policy or a business-use endorsement. Third party property cover remains focused on damage you cause to other people’s cars or property, but:

Declare rideshare/taxi use: Private‑only policies commonly exclude it.
Check liability limits: High limits (e.g. around $20m; some brands cite $30m) make sense with passenger carriage and city driving.
Look for practical extras: Some insurers include support like not‑at‑fault replacement cars or towing, which can keep you earning.

Delivery and courier

Food and parcel delivery increases stop‑start driving and theft exposure. Many insurers require a courier/delivery or commercial rating:

Disclose delivery use: Misclassification can void claims.
Know what’s not covered: Third party doesn’t cover the goods you carry; separate “goods in transit” or similar cover is typically needed.
Consider fire and theft: Parking in varied locations overnight may justify stepping up to third party fire and theft.

General business vehicles

Sales reps, tradies and mobile services should nominate business use at quote time:

Match cover to risk: Choose adequate liability limits; driver age restrictions may be harder if multiple staff drive.
Pick add‑ons with care: Uninsured motorist benefits and roadside assistance can be valuable when you rely on the vehicle to work.

Before you buy, confirm accepted uses, any driver/excess rules for younger staff, required documents (e.g. certificate of currency for platforms), and how your insurer handles claims when your car is off the road.

How to get quotes online (what you’ll need and how to compare)

You can line up accurate third party quotes in under 10 minutes if you’ve got your details ready. The goal is apples‑to‑apples: same drivers, same excess, same add‑ons (or none), so the only difference you see is price and core features.

What you’ll need

Have these handy before you start:

Your state, suburb and parking details: Garaging and postcode affect risk and price.
Vehicle specifics: Make, model, year and variant (registration/VIN helps but isn’t always essential).
Drivers and history: Ages, licence details, plus any recent claims or traffic infringements.
How you use the car: Private only, or business, rideshare/taxi or delivery (must be disclosed).
Annual kilometres (estimate): Usage influences premiums.
Mods/accessories: Declare any modifications and fitted accessories.
Excess preference and add‑ons: e.g. higher voluntary excess, uninsured motorist benefit, roadside assistance.

How to compare quotes properly

Get 4–5 quotes using identical inputs; keep add‑ons off for the first pass.
Standardise your excess (then test a higher voluntary excess to see savings).
Check liability limits: Around $20m is common; some brands cite $30m. Prioritise adequacy over tiny savings.
Confirm key features: Is an uninsured motorist benefit included or optional, and what’s the cap (often $3k–$5k)?
Match your use: Ensure business, rideshare or delivery is accepted if relevant.
Scrutinise discounts: First‑year online discounts are common; note renewal pricing may rise, so save each quote/PDS for review.
Test driver restrictions: Limiting to 25+/30+/50+ can reduce premiums if it fits your situation.

Capture quote references and summaries in one place. Once you’ve narrowed to two, re‑run each with the same add‑ons you actually want to finalise a fair, like‑for‑like choice.

Tips to get a cheaper third party premium

The quickest savings don’t come from cutting vital cover — they come from tweaking risk and policy settings. Use these proven moves before you buy or renew so you’re comparing true like‑for‑like and only paying for what you need.

Compare 4–5 quotes like‑for‑like: Same drivers, excess and add‑ons so only price and core features differ.
Raise your voluntary excess: Higher excess, lower premium — but make sure you could comfortably pay it if you claim.
Restrict drivers by age: Excluding under‑25s/30s can lower risk (and price) if that matches real‑world use.
Name drivers, don’t leave it “open”: Fewer, older named drivers generally cost less than an any‑driver setting.
Secure parking helps: Garaging or off‑street parking can price better than street parking in many postcodes.
Drive less where possible: Lower annual kilometres may reduce premiums; consider usage‑based options if available.
Skip non‑essential add‑ons: Only pay for extras you’ll use; buy roadside assistance separately if it’s cheaper.
Leverage discounts: Online sign‑up and multi‑policy discounts are common. Re‑shop annually — research shows many Aussies auto‑renew and prices often rise after the first year.
Choose an easier‑to‑insure car: If you’re still shopping, mainstream, lower‑powered models usually cost less to insure.
Disclose use accurately: Private vs business/rideshare/delivery affects price — misclassifying can void claims.
Use preferred repairers where it helps: Some insurers discount excess or offer perks when you use their network.
Ask for a price‑beat: If you have a better written quote, some providers will match or beat it.
Pay annually if fees apply monthly: Paying upfront can avoid instalment charges and reduce the total cost.

Small optimisations add up — stack a few and you can materially cut the cost of third party insurance without sacrificing the protection you actually need.

Sample price scenarios for common profiles

Premiums are personalised, so exact dollars vary by insurer and profile. To make the cost of third party insurance easier to picture, use this “baseline” as a reference: a 30‑year‑old in NSW, clean record, Toyota Corolla Ascent Sports, private use, garaged. Below are common scenarios and how their premiums typically move relative to that baseline — no figures, just the direction and why.

Profile	Use/vehicle	Key risk factors	Likely change vs baseline	Why it moves
20‑year‑old P‑plate driver	Same car, street‑parked	Young/inexperienced, on‑street parking	Higher	Higher crash stats and parking risk lift premiums.
45‑year‑old, clean record	Mid‑size SUV, garaged	Experienced driver, stable history	Similar to lower	Safer profile often offsets vehicle differences.
30‑year‑old rideshare	Same car, business/rideshare	Paid passenger carriage, peak‑hour exposure	Higher	Business use and higher exposure increase risk.
60‑year‑old regional driver	Small hatch, low km, garaged	Lower annual km, regional postcode	Lower	Less exposure and secure garaging can reduce cost.
30‑year‑old with recent claim	Same car, private use	At‑fault claim in last few years	Higher	Claims history is a strong price driver.
30‑year‑old, higher excess + 30+ restriction	Same car, private, garaged	Higher voluntary excess, older‑driver restriction	Lower	You accept more out‑of‑pocket risk and limit young drivers.

These scenarios are indicative only. Re‑run quotes like‑for‑like (same drivers, excess and add‑ons) to see your real numbers. Remember: liability limits (often around $20m; some policies cite $30m) and features like uninsured motorist cover (commonly capped around $3k–$5k) can also nudge premiums up or down, so compare inclusions alongside price.

Paying monthly vs annually and any fees

When weighing the cost of third party insurance, the way you pay can change the total you spend. Paying annually is often the cheaper overall option because many insurers add a small instalment loading or admin fees to monthly payments. Monthly (or fortnightly) can be easier on cash flow, but missed or failed payments can disrupt your cover until you catch up, so set up reliable direct debits if you choose instalments.

To compare like‑for‑like, use a quick check: monthly instalment x 12 versus the annual premium shown on the quote. If the annualised monthly total is higher, you’re paying an instalment loading. Also consider how your excess choice, driver restrictions and add‑ons interact with any instalment fee so you’re not overpaying for convenience.

Check the total annualised cost (monthly x 12) against the one‑off annual price.
Look for instalment loadings, admin or payment processing fees in the PDS.
Confirm first payment timing (some take a larger first instalment).
Understand late/dishonour fees and how missed payments affect cover.
If you might cancel mid‑term, ask how refunds are calculated and whether any charges apply.

Choose the option that balances total cost with your budgeting needs — then re‑shop at renewal to keep the overall price sharp.

How claims affect future premiums and excesses

Insurers price risk using your history, so claims can influence what you pay next time. Research shows they consider your driving record and past claims when calculating third party premiums. That means an at‑fault claim may lift your renewal price, while a clean run can help hold costs steady. Claims also trigger the excesses on your policy, which can stack depending on who was driving and the options you’ve chosen.

Premiums after a claim

Claims history counts: Prior claims can increase premiums at renewal; infringements can also add loadings.
Not‑at‑fault scenarios: Some third party policies include an uninsured motorist benefit (often capped around $3,000–$5,000) if you’re not at fault and you can provide the other driver’s details; caps and conditions apply.
Re‑shop at renewal: Prices can change after a claim. Get 4–5 like‑for‑like quotes before you auto‑renew.

Excesses when you claim

Basic excess applies per claim: This is the minimum you pay when a covered event occurs.
Voluntary excess is added on top: Choosing a higher voluntary excess lowers premiums but increases what you pay if you claim.
Age/inexperienced driver excess: Often applies if a younger driver is involved in the incident.
Other excesses may apply: Check your PDS for any additional circumstances that trigger extra excesses.
Preferred repairer perks: Some providers offer an excess discount if you use their repair network (and may include lifetime repair warranties).

Practical ways to limit the hit

Get a repair estimate first: For minor damage, weigh the cost against your excess before lodging a claim.
Tighten risk settings at renewal: Consider higher voluntary excess, restrict younger drivers where appropriate, and confirm secure garaging.
Keep records clean: Safe driving and avoiding infringements can help stabilise premiums over time.

Understanding how claims flow through to both premiums and excesses helps you decide when to claim, how to structure your policy, and when to switch if the renewal jumps.

Switching providers and cancellation rules

You don’t have to wait for renewal to switch. If another insurer gives you a sharper price or better inclusions, you can change mid‑term — just line up the new cover first so there’s no gap. Switching can meaningfully lower the cost of third party insurance, especially if your current policy has crept up at renewal. Some providers (including National Cover) will help you calculate your likely return premium on the policy you’re leaving and make the process straightforward.

Line up the new policy: Match start date/time to when you’ll cancel the old one; get written confirmation of cover.
Cancel the old policy: Ask for a pro‑rata refund (return premium) of the unused portion, noting any cancellation/admin fees in the PDS.
Monthly vs annual: Monthly payers usually stop future instalments; annual payers typically receive a pro‑rata refund, both subject to provider rules.
Keep docs handy: Request a certificate of currency and claims history; give these to your new insurer if asked.
Mind CTP: CTP/registration is separate — switching third party property cover won’t change your CTP.
Ask for a price‑beat: If you have a written quote, many insurers will match or beat it to win your business.

Frequently asked questions

We’ve grouped quick answers to the questions Australians ask most when they’re weighing the cost of third party insurance. Use these to sanity‑check your options, then line up like‑for‑like quotes so you’re comparing price and key protections on equal footing.

What does third party cover? It pays for damage you cause to other people’s cars and property. It doesn’t cover injuries to people (that’s CTP) or repairs to your own car.
How much does it usually cost? Premiums are personalised. It’s generally cheaper than comprehensive and often more than half the price, but you need 4–5 quotes to see your true price.
Does it cover windscreen damage? Usually not. Windscreen cover is typically a comprehensive feature and is commonly excluded on third party property policies.
Is third party the same as CTP? No. CTP is compulsory and covers injuries to people. Third party property covers damage to other people’s property.
What’s a typical liability limit? Around $20 million is common in Australia; some policies advertise up to $30 million. Always check the PDS.
Will it cover me when I drive other cars? No. Cover is attached to the insured vehicle and named/approved drivers, not you personally in any car.
What is uninsured motorist cover? A small benefit (often capped around $3,000–$5,000) if an uninsured driver hits you and you’re not at fault, subject to conditions.
Can I add roadside assistance? Sometimes as an optional extra; otherwise buy it separately. It can change the overall premium.
Can I pay monthly? Usually, yes — but instalment loadings or admin fees may apply. Annual payment can work out cheaper overall.
Will a claim affect my premium? Often, yes. Insurers consider your driving record and claims history at renewal, so re‑shop if your price jumps.

Final thoughts

Third party property car insurance is the lean way to protect your wallet from the big bills if you damage someone else’s car or property. It’s usually cheaper than comprehensive, but what you pay still hinges on your age, vehicle, postcode, usage and claims history. Compare 4–5 like‑for‑like quotes, pick an excess you can afford, restrict drivers where you can, and focus on solid liability limits.

Whether you’re a private driver or you use your car for rideshare, delivery or business, you can keep costs down without skimping on essentials. If you’re ready to sharpen your premium, get a quick quote with National Cover. We specialise in private and commercial motor cover, back pricing with expert research and a price‑beat promise, and make claims support simple — with perks like lifetime repair warranties, not‑at‑fault replacement cars, 24/7 towing and 365‑day assistance. Switch anytime; we’ll help you sort any return premium.