Third party fire and theft (TPFT) car insurance offers a middle ground between basic third-party cover and comprehensive insurance. It’s a popular choice for drivers who want extra protection for their car while keeping premiums affordable, covering damage you cause to other people’s property but also protecting your car against fire and theft.
What is third party fire and theft car insurance?
Third party fire and theft insurance is an optional car insurance policy that covers damage you cause to other people’s vehicles or property, as well as specific risks to your own car. It includes:
- Damage to another person’s vehicle or property when you’re at fault in an accident
- Fire damage to your vehicle
- Damage to your car caused by attempted theft
- Theft of your car
Depending on your policy, you may also have additional inclusions or optional extras to choose from, such as:
- Roadside assistance
- Contents cover
- Child seat replacement
- Towing costs
- Hire car after theft
While it’s a step up from third party property damage (TPPD), which only covers damage to other people’s property, TPFT still has its limits. It won’t cover damage to your own car if you’re at fault in a crash, or from events like storms, vandalism or accidental damage. For that level of protection, you should look to comprehensive insurance.
How much more is fire and theft than basic third-party insurance?
Third party fire and theft insurance generally costs more than third party property damage cover due to the additional protection it offers – but exactly how much more you’ll pay depends on several factors, including your car, your driving history and where you live. With car thefts on the rise in some parts of Australia, it’s likely that the fire and theft insurance premiums will increase too. To give you a clearer idea of how they compare, here are TPFT and TPPD premiums across several popular 2015 models:
| Vehicle | Car type | Fuel type | Transmission | TPPD | TPFT |
|---|---|---|---|---|---|
| Suzuki Swift GL | Small car | Petrol | Automatic | $470 – $804 Average: $599 | $620 – $878 Average: $723 |
| Toyota RAV4 GX | Midsize SUV | Petrol | Automatic | $644 – $769 Average: $697 | $835 – $983 Average: $890 |
| Toyota Hilux SR (4-door) | Ute | Petrol | Automatic | $686 – $859 Average: $764 | $985 – $1,159 Average: $1,049 |
| All quotes were sourced from Compare the Market in June 2025. Based on a 30-year-old male driver in Adelaide with a full licence and no previous claims. The vehicle is used for private purposes, driven 10,000 km per year, and kept in a garage overnight. A standard excess of $600 applies. | |||||
Taking out TPFT rather than TPPD can add hundreds of dollars to your annual premium, increasing the average cost by more than 37% in the case of the Toyota Hilux above. However, the additional cost can offer significant peace of mind, knowing that you are covered for major risks if your car is stolen or damaged by fire.
Other factors can influence your premium too, including your age, driving history, how often you use your car and where it’s kept overnight. Location also matters – if theft rates are high in your area or it’s a fire-prone region, your premium will generally reflect that risk. That’s why it’s worth comparing quotes to find the most suitable cover based on your personal situation.
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Pros and cons of third party fire and theft insurance
Pros
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Covers more than basic third-party car insurance
In addition to third-party property damage, TPFT covers your car if it's stolen or damaged by fire, and you may be able to add optional extras to your policy.
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Cheaper alternative to comprehensive
TPFT insurance covers almost all of the areas that comprehensive car insurance does while charging you less for your premiums.
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Provides legal liability for at-fault accidents
Not only will you be covered for the cost of any damage done to another vehicle or property, but also for legal proceedings that may stem from the accident.
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Protection from common risks
Fire and theft are among the most expensive risks for car owners. TPFT gives peace of mind without the full cost of comprehensive cover.
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Suitable for budget-conscious drivers
TPFT is a popular choice for drivers who want protection from major events but don’t need cover for their own car in all scenarios.
Cons
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No cover for your car in at-fault accidents
TPFT won’t pay to repair or replace your car if you're responsible for a crash. In most cases, only damage caused by an uninsured third party may be partially covered.
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Limited add-ons and extras
Compared to comprehensive cover, TPFT usually comes with fewer optional benefits.
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Not ideal for newer or high-value cars
If your vehicle is worth a lot, TPFT may not offer enough protection. Fire and theft payouts are often capped, and there’s no cover for crash damage, meaning you could face high replacement costs.
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You may be left out of pocket
If your car is written off in an at-fault accident, you'll have to pay for repairs or a new car yourself.
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Fewer insurers offer it
TPFT isn’t available from all providers and may not be offered for all cars, especially newer models. There’s generally a wider selection of TPPD and comprehensive policies to choose from.
How to get fire and theft car insurance
TPFT isn’t available from every lender or for every car, but you can easily compare your options online to see what’s on offer. Here’s how the process works:
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Complete a quick online quote
Provide a few basic details such as your age, location, driving history and car make and model. Our trusted comparison partner will use this information to generate personalised quotes in minutes.
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Review and compare your options
You’ll be able to see what each insurer offers, including premiums, inclusions, optional extras and exclusions. There may also be discounts or introductory deals available that can lower your costs.
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Select and buy your TPFT policy
Once you’ve found a TPFT policy that suits your needs and budget, you can purchase it online through the insurer. In most cases, your cover can begin immediately, giving you instant protection.
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Should I get third party fire and theft cover?
TPFT insurance can be a sensible middle ground for many drivers. While it doesn’t cover your car for at-fault accidents, it does protect against two major risks – theft and fire – at a lower cost than comprehensive insurance.
Third party fire and theft is often a good fit for:
- Drivers with older or lower-value cars: if your car isn’t worth as much anymore, it may not be cost-effective to pay for comprehensive cover. TPFT still gives you valuable protection against major risks like fire and theft.
- Budget-conscious drivers: you can reduce your premium while still having more protection than basic third-party insurance offers.
- People in high-risk areas: if you live in a region where theft or bushfires are more common, TPFT can offer peace of mind without the full cost of comprehensive cover.
- Those who don’t need accident cover for their own car: if you’re confident you can cover repair or replacement costs after an at-fault crash, TPFT can be a practical option.
However, TPFT isn’t ideal for everyone. If your car is newer or higher in value, comprehensive insurance is usually more appropriate – and if it’s under finance, your lender will generally require full cover. TPFT also won’t cover repairs to your car after an at-fault accident, which could leave you significantly out of pocket. And because TPFT isn’t offered by all insurers or for every car, availability may be limited depending on your vehicle and circumstances.
