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4.2 out of 5 Stars

4.2 | 142 Reviews*

What’s covered by third party car insurance?

Third party car insurance offers basic protection; you can choose one of two levels of cover:

Benefit Third Party Property Third Party Fire and Theft
Damage to other people’s property, including their vehicles, for which you’re liable Up to $20 million Up to $20 million
Legal costs    
Damage caused by an uninsured driver Up to your car’s market value or $5,000 (whichever is the lesser) Up to your car’s market value or $5,000 (whichever is the lesser)
Fire damage    
Hire car following theft   Up to $1,000, up to 14 days
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Third party property insurance, which is not mandatory, should not be confused with compulsory third party (CTP) insurance.

Get a quote

Because we don’t insure unsafe drivers, we can keep our premiums low for safer drivers like you.

Get a third party car insurance quote and buy a policy online and you’ll receive a 15% discount; or call us on 1800 700 027.

Find out more

The information on this page is a summary only. For more details about Budget Direct third party car insurance, including the terms, conditions, limits and exclusions that apply, please read the product disclosure statement (PDS)

How to make a claim

If you need to make a claim, we’re here to help. Make a claim on your third party car insurance policy.

More ways to save

Here are some ways you can reduce your third party car insurance premium even further:


You can restrict your policy to drivers over a certain age: 21+, 25+, 30+, 40+, 50+ – the biggest age range of any major insurer#.

Annual premium payments

By paying annually instead of instalments (i.e. fortnightly or monthly), you’ll pay a lower premium and avoid administration fees.

How can I get these savings?

You can select your driver-age restriction and payment preferences when you get a quote and buy a policy or – if you’ve already bought one – by contacting us or logging into your online account and editing your policy.

Award-winning Australian car insurance

After comparing the cost and features of 47 comprehensive policies offered by 37 insurers, Canstar awarded us one of only two national awards for Outstanding Value Car Insurance in 2019 – a record 13th year in a row we've won the award.

CANSTAR's Outstanding Value Car Insurance Australia 2007-2019
Money Magazine's Insurer of the Year 2019

More reasons to choose us

24/7 claims

Lodge a claim over the phone or online at any time of the day or night, 365 days a year.

Reliable repairs

Get a lifetime guarantee on authorised repairs to your car for as long as you own it.

Change of vehicle

If you replace your Budget Direct-insured car with a similar one, we’ll automatically provide the same level of cover for your replacement car for 14 days from the purchase date – even if you don’t contact us.

Flexible payments

Pay your premium fortnightly, monthly or yearly, the last of which is the most economical.

Roadside Assistance

For just $79.95 a year – less than $1.60 a week – you can take advantage of our 24/7 nationwide Roadside Assistance service.

It can be purchased with or without a Budget Direct car insurance policy. 

With our Australian network of more than 2,500 contractors, you’re never too far from help.

Want more cover?

Third party car insurance does not cover loss or damage to your vehicle due to:

Crash or collision No
Severe weather (e.g. hail or flood) No
Malicious acts No

Comprehensive car insurance is the type of insurance which covers these events.

Frequently asked questions

What is third party car insurance?

Third party car insurance comprises two levels of cover:

  • Third Party Property, which covers your liability for damage your vehicle causes to other people’s property (e.g. their car and home). It does not cover damage to your vehicle (unless it’s damaged in a no-fault accident with an uninsured driver, in which case you have limited cover).
  • Third Party Fire and Theft, which provides the same protection as Third Party Property plus cover for loss or damage to your vehicle if it’s stolen or catches fire.

Third party property damage insurance, which is voluntary, is different to compulsory third party (CTP) insurance, which all vehicles in Australia must have before they can be registered and legally driven on the road.

What would be the point in having third party property insurance, which does not cover damage to my car due to collision?

If your car has a low market value, you may decide that third party property cover is adequate – that it’s not worth paying a higher premium for comprehensive car insurance as, over time, it could outweigh the cost of replacing your vehicle if it was damaged in an accident.

Also, although third party property insurance does not cover damage to your car, it does cover your liability for damage your car causes to other people’s property, saving you having to pay their potentially expensive repair bills.

Note that Budget Direct third party insurance does provide limited cover – up to your car’s market value or $3,000, whichever is the lesser – for damage caused to your vehicle by an uninsured driver.

What’s the difference between third party property and compulsory third party (CTP) insurance?

Third party property insurance, which is voluntary, covers your legal liability for the damage your vehicle causes to someone else’s property, including their car. (It’s also known as third party property damage insurance.)

CTP insurance, which is compulsory, covers your legal liability for injuring or killing someone else in a motor accident.

If I have only compulsory third party (CTP) insurance and I cause an accident, will I have to pay for the repairs to the other person’s car?

Yes – in most cases you’ll be required to pay for:

  • the reasonable cost to repair the other person’s damaged car or the market value of the car (whichever is the smaller amount)
  • towing costs
  • demurrage (hire car costs, lost wages or profits for income-earning cars).

You can avoid these hefty costs by taking out Budget Direct third party car insurance. On acceptance of your claim, all you’ll need to pay is the excess; we’ll take care of the rest of the other person’s repair bill.

If you’re involved in an accident and are uninsured (apart from CTP, which is part of your registration), you should seek legal advice as soon as possible.

Would Third Party Fire and Theft Insurance cover me if someone damaged my car while unsuccessfully trying to steal it, or I had personal items stolen from my car?

No – that level of protection is provided by comprehensive car insurance.

^Online discount terms and conditions apply.
*Based on customers who have made a claim on Budget Direct Third Party Car Insurance, and who were surveyed between 10 February 2015 and 31 May 2019. Visit for more details.
‡ Before lodging a claim, you must report the accident to the police; and, when lodging your claim, provide evidence the other vehicle is uninsured.
§ Your car would not be covered while it was being driven by someone under the restricted age.
# The 50+ age bracket applies only to policies purchased on or after 2 July 2017.

Get a third party car insurance quote online