October 17, 2018

What is Third Party Fire and Theft Cover for Your Car?

We all know that insurance plays a significant role in our lives. It provides protection from certain incidents and peace of mind for you and your family that you’ll have something to depend on when an unfortunate incident occurs.

There are so many types of insurance, and one of them is car insurance which varies depending on factors such as coverage, cost, and fees. When looking for the right one for your vehicle, you may come across the term “third party fire and theft cover”. This type of car insurance in Australia gives protection from liability costs or damages that your car does to property or another car, as well as damages from fire and theft. Older vehicles can take advantage of third party fire and theft cover, instead of getting a comprehensive insurance.

What covers this type of insurance? It may depend on the insurer but in general, a third party fire and theft cover includes the market value of a car for damage or even loss as a result of theft or fire, liability for damage or loss of other people’s property, and repairs to your car. It can also include expenses of a hire car after theft until your car is recovered, and cost of storing your car after theft or accident.

The cost of getting a third party fire and theft cover is influenced by certain factors including your age, driving background, address, vehicle parking, security features, as well as the size and model of the vehicle. Insurers look at these factors differently. That is why it is essential to check various types of insurance and compare the benefits and features of third party fire and theft cover.

Car insurance can be expensive, especially if you got a comprehensive one, but there are simple ways to reduce your premiums. Aside from comparing policies from several insurers, you can bundle all of your policies under one provider to get discounts. You can also increase your excess and add security features to your vehicle. If you’re planning to buy a car, you may want to consider purchasing one that is less expensive to insure. Restricting the use of your car only to nominated drivers can likewise reduce the cost of your car insurance premiums. Also, get insurance advice from an expert so you will better understand the terms and coverage of the policy.

Got other tips when it comes to car insurance in Australia? Share your insurance advice in the comments section.

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Ways to save money and time for buying and claiming CTP insurance

Use this handy checklist to save you time and money for all things related to car insurance.

Before you buy

Prepare your documents and do a bit of research to ensure you are getting the best deal you can.

What you will need

  • Car registration details
  • Owners identification
  • Credit card or other payment method

What to do

  1. Work out the cheapest name to register and insure the vehicle in – usually the eldest or person with cleanest driving record.
  2. Compare each of the CTP providers
  3. Consider available discounts for multiple products or existing relationships – try your financial institution or insurers you have other insurance policies with.

Making a claim

If you need to make a claim, make sure you report any accident you wish to make a claim on to the police. If you are not ‘at fault’ then make sure that your insurance company knows this so a claim can be made against the ‘at fault’ person’s own insurance policy.

What you will need

  • ‘At fault’ driver’s registration details
  • ‘At fault’ driver’s CTP insurance details
  • Police accident report reference number
  • Registration and insurance details of other vehicles involved in the accident

What to do

  1. Seek medical immediately. You do not need to wait to make a claim
  2. Exchange details – If you were the ‘at fault’ party then you need to provide the other party with your insurance details so they can make a claim. If someone else was at fault you need to follow information to make a claim against their insurance:
    • License
    • Registration
    • CTP insurance
  3. Report the accident to the nearest police station – any accident in which a person is injured must be reported to the police.
  4. Contact the ‘at fault’ party’s insurance company to start a claim.
  5. Have your medical practitioner complete the medical certificate as part of the claim form.
  6. Claims must be made within nine months of the accident or injuries first appearing. If the ‘at fault’ vehicle cannot be identified, then claims must be made within three months.
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How to Save Money on Your Car Insurance

Having a car insurance is essential as it serves as your security blanket. It protects you from huge expenses related to your vehicle in case of an unfortunate event such as an accident. Cost for repair is one less thing to worry about if your car is insured.

Car insurance is another expense to be included in your budget, and it doesn’t come cheap especially if it’s a comprehensive one. However, this does not mean that you need to pay more than you have to. You can actually lower your car insurance cost with a few simple tricks. Here are several ways to save on car insurance:

  • Compare prices and value

Insurers differ in price and features of their car insurance, so it is advisable to shop around. Market value, roadside assistance, and monthly payments at no extra cost are some of the features to look into. Get quotes from several insurers so you can be sure that you’re getting the best offer – enough coverage without leaving a hole in your pocket.

  • Consider adding age restrictions

Having drivers under the age of 25 can dramatically increase your premiums. You can save on car insurance if there are age restrictions. If there are young drivers in the family, you may want to let them only one of your family cars if possible so the cost of insurance remains low for all other cars.

  • Keep a good driving record

You can lower your premiums by maintaining a good driving record. This tells the insurer that you have a low risk of making a claim which can then translate to lower premiums.

  • Review your add-ons

Additional options add up to your premiums, so it may be wise to check if you really need that no-excess windscreen replacement, used car extended warranties, and other extras that you may have. If not, then maybe you can forego these add-ons so you can save on car insurance.

  • Bundle multiple policies

If you have a home and life insurance from one insurer, you may want to add your car insurance and get multiple policy discounts. Aside from saving money, bundling your insurance products makes it more convenient for you – from getting monthly bills and paying premiums to making claims. You can ask your insurer if they offer this option. Shop around with different insurers and consider moving all policies to one that offers the cheapest bundle price.

There really is no best way to save on car insurance, but consider these tips and you may be able to lower your premiums and save money.

Do you know other ways on how to save on car insurance? You can share your insights in the comments section below.

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