Compare Third Party vs Third Party Fire and Theft Car Insurance Policies
Do you want to insure yourself for any damage your car causes? Our third party car insurance guide compares annual policy costs, third party vs fire and theft third party costs and cover, and lists must-know tips and considerations to help you save money and find the right policy.
Updated 4 April 2025
What is Third Party Car Insurance?
Third-Party Car Insurance protects you from liability if you cause an accident and/or damage another person's property. This means you won't be chased for payment by someone who suffers a loss directly caused by your actions. Unlike comprehensive car insurance, your car will not be repaired or replaced if you caused the accident.
In this guide, we outline the difference in coverage between standard Third Party and Third Party Fire and Theft policies, as well as comparing the costs for two sample cars. Our guide covers:
Useful guides to help you save
In this guide, we outline the difference in coverage between standard Third Party and Third Party Fire and Theft policies, as well as comparing the costs for two sample cars. Our guide covers:
- Comprehensive vs Third Party Car Insurance - What Cover is Suitable?
- Best Third Party Car Insurance Policies
- Four Proven Ways to Save on Third Party Car Insurance
- Third Party Car Insurance Frequently Asked Questions
Useful guides to help you save
- Want to save money on your policy? Our How to Get Cheaper Car Insurance guide has you covered.
- Considering adjusting your car insurance excess? Our Car Insurance Excess Costs guide explains what's important (and what it costs).
- Looking for comprehensive/full car insurance? This guide is not for you. Our car insurance comparison covers this type of insurance.
Third Party Car Insurance Must-Know Facts:
1. Third-party car insurance covers damage to other vehicles and property, as well as any legal liability from your actions. It does not cover your vehicle if you are at fault.
Know this: Many Third Party Policies provide cover if a third party damages your car and you're not at fault
- Some insurers, such as Tower and AA Insurance, will pay for repairs to your car if it is damaged in an accident you didn't cause or at not more than 50% at fault.
- However, you must identify the person at fault (name, phone number and registered number of that other party's vehicle) and prove their vehicle is uninsured.
- Tower, Trade Me and AA Insurance cover the cost of repairs, the market value of your car, or costs up to $4,000. AMP covers up to $5,000, AMI, State and Protecta cover up to $3,000.
2. The Difference Between Third-Party vs Third Party Fire and Theft Car Insurance
Insurers usually sell two types of third party car insurance - standard and "fire and theft". Fire and theft policies provide additional cover should your vehicle be stolen or damaged / destroyed by fire (unrelated to an accident you cause). Because of the steady number of cars stolen every week, additional coverage beyond standard third party insurance protects you against thieves.
3. Policy Costs
Our research suggests third party car insurance starts at around $200 a year for drivers over 25 years old who have an accident-free history.
MoneyHub Readers Report: Cove Insurance Can Offer Comprehensive Cover at Third-Party (Fire & Theft) Rates
Christopher Walsh
MoneyHub Founder |
For drivers considering third-party car insurance, MoneyHub readers continue to report that Cove Insurance has emerged as a standout option for full comprehensive coverage at pricing that, in some cases, is comparable to third-party (Fire & Theft) policies offered by other insurers.
We continue to receive emails from readers suggesting that for vehicles valued from around $2,500 to $15,000, Cove's pricing makes it a viable alternative for those looking to upgrade from third-party to comprehensive cover without a significant increase in cost. Cove's policies focus on quality coverage while excluding under-21 drivers, catering to a broad range of drivers looking for affordable full cover from an insurer that's easy to deal with should you need to claim. Getting a quote from Cove is fast and straightforward and takes just a few minutes, and it is worthwhile to see if Cove is similar in pricing for your car compared to third-party policies from the likes of AMP, Tower Insurance, AA Insurance, AMI Insurance and other options to get an idea of what it's going to cost. Advertising Disclosure: Our reviews and research focus on price and coverage. MoneyHub may receive a commission for quotes or policy acquisitions. For more information, please refer to our Advertising Policy. |
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Comprehensive vs Third Party Car Insurance - What Cover is Suitable?
Third party car insurance is usually best for someone with a low-value vehicle who wants to protect themself from the cost of repairs on someone else's car or property if they cause an accident.
However, even if you have a cheap car, that doesn't always mean you should avoid comprehensive car insurance. Before deciding what's right for you, ask these questions:
Our view: Third party car insurance is usually best for anyone with a low-value car who can afford to repair or replace it instantly. The upside is that the annual premiums are 30% to 40% of comprehensive car insurance, but the downside is that you'll not receive any money to help you replace your car should you cause an accident.
However, even if you have a cheap car, that doesn't always mean you should avoid comprehensive car insurance. Before deciding what's right for you, ask these questions:
- Is my car at risk of being stolen? If it's not, standard third party insurance is arguably suitable. If your car is at risk, comprehensive or fire and theft cover should be considered.
- Can I afford to pay for the costs of repairing someone else's car and/or property? Hitting a BMW or Jaguar, for example, can instantly set you back $10,000 or more if you cause substantial damage. If you can't afford to cover the costs, third party insurance is a good starting point.
- Can I afford to repair or replace my car if it's damaged? Third party insurance doesn't pay out if you cause an accident. If you would struggle to meet the costs of a replacement, comprehensive car insurance may be more suitable than third party.
Our view: Third party car insurance is usually best for anyone with a low-value car who can afford to repair or replace it instantly. The upside is that the annual premiums are 30% to 40% of comprehensive car insurance, but the downside is that you'll not receive any money to help you replace your car should you cause an accident.
Third Party vs Third Party Fire and Theft Car Insurance - Benefits by Policy Type Comparison
Our table below compares the benefits of standard Third Party and Fire and Theft policies - before purchasing any product, please check the specific cover they offer.
Know this: While third party is always cheaper than third party fire and theft policies, comprehensive policies offer a lot of additional protection compared to third party policies. Furthermore, the benefits may only be additional $200 to $400 a year (if your car's market value is below $5,000 or so).
Know this: While third party is always cheaper than third party fire and theft policies, comprehensive policies offer a lot of additional protection compared to third party policies. Furthermore, the benefits may only be additional $200 to $400 a year (if your car's market value is below $5,000 or so).
Benefit |
Third Party Car Insurance |
Third Party Fire and Theft Car Insurance |
Comprehensive Car Insurance |
Damage to other people’s vehicle and/or property from actions you caused and are liable for |
Covered |
Covered |
Covered |
Damage to your vehicle caused by an uninsured driver that you can identify and who is at fault |
Covered (by most policies) up to $4,000 or similar |
Covered (by most policies) up to $4,000 or similar |
Covered (cost of repairs or replacement of car at market value or agreed value) |
Fire damage |
Not Covered |
Covered |
Covered |
Theft damage |
Not Covered |
Covered |
Covered |
Towing and Transport |
Not Covered |
Covered (by most policies) |
Covered |
Best Third Party Car Insurance Policies
To properly compare car insurance quotes, we selected two common cars that are insured with third party policies. Arranging your own quotes is simple - you should be able to gather 4-8 quotes in ten minutes online.
Already have insurance? Compare and Negotiate: If you currently have a third party policy and wish to stay with the same insurer, we suggest obtaining competing quotes so you can negotiate the annual policy price downwards if you find a better deal.
Already have insurance? Compare and Negotiate: If you currently have a third party policy and wish to stay with the same insurer, we suggest obtaining competing quotes so you can negotiate the annual policy price downwards if you find a better deal.
Sample Cars and Quotes - 2005 Suzuki Swift and 2010 Toyota Corolla
Car 1: 2005 Suzuki Swift 5 Door Hatchback (4 Cylinders, 1.3 Litre Petrol 5 Speed Manual, parked on the driveway in Auckland)
Car 1: 2005 Suzuki Swift 5 Door Hatchback (4 Cylinders, 1.3 Litre Petrol 5 Speed Manual, parked on the driveway in Auckland)
- Specs: Male, 28 year old driver, North Shore of Auckland resident, no claims history, replacement at market value (for comprehensive policy comparison), car not purchased on finance
- Agreed value: $4,000
- Excess: $400
- Additional drivers: None
- Quotes obtained: 5 April 2025
- Car Registration: LRM198
- Kilometres driven per year: Up to 20,000
Insurer |
Third Party |
Third Party Fire and Theft |
Comprehensive |
$313.16 |
$549.47 |
$1,149.07 |
|
$214.51 |
$328.24 |
$835.85 |
|
$306.97 |
$493.70 |
$1,100.00 |
|
$324.02 |
$568.39 |
$1,189.11 |
|
$175 |
$536.54 |
$1070.62 |
|
$187.00 |
$323.70 |
$824.88 |
|
AMP ($500 excess minimum) |
$215.86 |
$350.43 ($3,000 market value) |
$790.06 ($3,000 market value) |
Car 2: Toyota Corolla Hatchback 2010 (1.8L, automatic), parked on the driveway (Auckland)
- Specs: Male, 28 year old driver, North Shore of Auckland resident, no claims history, replacement at market value (for comprehensive policy comparison), car not purchased on finance
- Agreed value: $6,800
- Excess: $400
- Additional drivers: None
- Quotes obtained: 5 April 2025
- Car Registration: FPQ531
- Kilometres driven per year: Up to 20,000
Insurer |
Third Party |
Third Party Fire and Theft |
Comprehensive |
$307.41 |
$628.82 |
$1,113.22 |
|
$213.72 |
$366.63 |
$1,110.79 |
|
TBC |
TBC |
TBC |
|
$318.27 |
$650.80 |
$1,152.38 |
|
$175.00 |
$523.51 |
$1,039.48 |
|
$182.90 |
$358.74 |
$1,094.08 |
|
AMP ($500 excess minimum) |
TBC |
TBC ($---- market value) |
TBC ($---- market value) |
MoneyHub Readers Report: Cove Insurance Can Offer Comprehensive Cover at Third-Party (Fire & Theft) Rates
Christopher Walsh
MoneyHub Founder |
For drivers considering third-party car insurance, MoneyHub readers continue to report that Cove Insurance has emerged as a standout option for full comprehensive coverage at pricing that, in some cases, is comparable to third-party (Fire & Theft) policies offered by other insurers.
We continue to receive emails from readers suggesting that for vehicles valued from around $2,500 to $15,000, Cove's pricing makes it a viable alternative for those looking to upgrade from third-party to comprehensive cover without a significant increase in cost. Cove's policies focus on quality coverage while excluding under-21 drivers, catering to a broad range of drivers looking for affordable full cover from an insurer that's easy to deal with should you need to claim. Getting a quote from Cove is fast and straightforward and takes just a few minutes, and it is worthwhile to see if Cove is similar in pricing for your car compared to third-party policies from the likes of AMP, Tower Insurance, AA Insurance, AMI Insurance and other options to get an idea of what it's going to cost. Advertising Disclosure: Our reviews and research focus on price and coverage. MoneyHub may receive a commission for quotes or policy acquisitions. For more information, please refer to our Advertising Policy. |
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Four Proven Ways to Save on Third Party Car Insurance
While third party car insurance is always cheaper than comprehensive, there are additional ways to save on your policy. We outline four must-know tips that are easy to action and provide real savings.
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Buy policies onlineOur researchers routinely see online discounts as more and more car insurers move to direct sales. Some insurers offer cash discounts, one or two months free cover and/or other incentives to entice new customers. Best of all, online car insurance is transparent and you can compare between insurers using your unique details (age, driving history and other essential inputs).
Top tip - when you compare online, you can adjust the excess you pay to suit your budget. The lower the excess, the higher the insurance policy (and vice versa). For example, a $400 excess will mean you'll pay more annually for car insurance than a $500 or $750 excess for the same policy. Online Insurer questions influence how much you'll pay: Insurers like cars that are locked in a garage or parked off-road, as this makes them less of a theft risk. They also offer lower policy costs to those who don't need additional drivers (especially young drivers) and those who drive the car less than 5,000 km a year. |
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​Set driver age restrictionsWhen you organise quotes, you can restrict your policy to drivers over a certain age: 18+, 21+, 25+ or 30+ etc. The higher the age limit for young adults, generally, the cheaper the policy. There's no point paying a policy that allows 18 year olds to drive your car if that's an unlikely prospect.
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Pay annually, not monthlyOur research team repeatedly observes that annual policies are anywhere from 10% to 20% cheaper than the monthly payment option. This difference can add up to over $1,000 over five to ten years, so the savings from paying annually add up.
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Never auto-renew car insurance as you may pay a "loyalty tax"Some insurers may increase their premium prices to existing customers when it comes up for renewal after twelve months. When you buy a policy, set an auto-reminder for 11 months and take a few minutes to compare your options before your renewal date. Many MoneyHub users report to us that comparing before renewing has saved them $200+ on their next year of car insurance.
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Want more ways to save? Our guide to comprehensive car insurance contains 20+ other money saving tips to save on car insurance, many of which apply to third party policies.
Third Party Car Insurance Frequently Asked Questions
To help bring clarity to what third party car insurance costs, covers and excludes, we've published a list of common queries below to help you purchase the right policy while being aware of what's important.
Does third party car insurance cover me for the damage my car causes to other people's vehicles and property?
Yes - this is the primary purpose of third party car insurance. If disaster strikes and you cause an accident, the insurance policy protects you from being personally liable for damage done to 'third party' property. Comprehensive car insurance also covers this.
Does third party car insurance cover car theft?
It depends. 'Third Party Fire and Theft' covers the necessary repairs or loss if your car is stolen and/or damaged. However, standalone third party policies don't cover theft, hence the distinct ' Third party fire and theft' policy. Third-party policies do not cover items stolen from your car; this level of protection is only covered by comprehensive car insurance.
​What cover does Third Party car insurance exclude?
Standard third party car insurance excludes many benefits you'll find with comprehensive car insurance. For this reason, comparing the cost of a comprehensive and third party policy is essential as the difference in price may not justify the loss of benefits. Third-party policies generally exclude:
- Accidental damage to your car when you're at fault - this means if you have an accident, your repairs won't be covered, nor will you be paid money if your car is written off
- Fire damage to your car
- Theft and vandalism damage to your car
- Storm, water and hail damage
​How do car insurers calculate the cost of Third Party policies?
The price you're quoted depends on many elements, which may include:
- The make and model of your car, and its age
- Your age and gender
- How long you've been driving for
- Your car insurance claims history
- Your address
- Any aftermarket modifications you've made
How often do I pay car insurance?
Most insurers let you pay fortnightly, monthly or annually. Our research repeatedly finds that policyholders save 10% to 20% by paying their policy annually.
MoneyHub Readers Report: Cove Insurance Can Offer Comprehensive Cover at Third-Party (Fire & Theft) Rates
Christopher Walsh
MoneyHub Founder |
For drivers considering third-party car insurance, MoneyHub readers continue to report that Cove Insurance has emerged as a standout option for full comprehensive coverage at pricing that, in some cases, is comparable to third-party (Fire & Theft) policies offered by other insurers.
We continue to receive emails from readers suggesting that for vehicles valued from around $2,500 to $15,000, Cove's pricing makes it a viable alternative for those looking to upgrade from third-party to comprehensive cover without a significant increase in cost. Cove's policies focus on quality coverage while excluding under-21 drivers, catering to a broad range of drivers looking for affordable full cover from an insurer that's easy to deal with should you need to claim. Getting a quote from Cove is fast and straightforward and takes just a few minutes, and it is worthwhile to see if Cove is similar in pricing for your car compared to third-party policies from the likes of AMP, Tower Insurance, AA Insurance, AMI Insurance and other options to get an idea of what it's going to cost. Advertising Disclosure: Our reviews and research focus on price and coverage. MoneyHub may receive a commission for quotes or policy acquisitions. For more information, please refer to our Advertising Policy. |
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Want to know what cars are favoured by insurers?
- Compare Car Insurance
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- Car Finance
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- Cut Driving Costs
- No Claims Bonus
- Car Insurance Excess
Want to know what cars are favoured by insurers?
- Our guide to the cheapest cars to insure lists models which predominantly are compact in size, have small engines and are Japanese-made.
- The value of these cars (and the low risk nature of their drivers) makes them more attractive to insurers and therefore cheaper to insure.
