How does Third Party Car Insurance work?
If I am not at fault and I have third party, will my insurer still regain the value of my car from whoever damaged it?
Car Insurance Clarification - Comprehensive Vs Third Party
pixpotato on 10/01/2021 - 22:49
Last edited 11/01/2021 - 02:38 by 1 other user
Last edited 11/01/2021 - 02:38 by 1 other user
Comments
Third party will only cover you (generally, some policies don't cover you at all) if the other/at fault driver is uninsured. If they are insured, you will need to get their insurer's details and chase it up.
Think of 3rd party as coverage for when you hit that $400K Porsche 911 at the supermarket carpark, at your own fault, insurance will pay the damages to the Porsche. Saving you a lifetime of repayments.
However you will have to fetch the bus home until you can save for the next car.
Just to clarify (as there seems to be a lot of confusion in this area) - do you mean compulsory third party (CTP) or third party property insurance which you take out in addition to CTP?
Compulsory third party insurance pays for injuries that you cause to other people. Your CTP insurance doesn't protect your own injury or any property damage.
Third Party Property insurance is what yellowfever mentioned, pays for damage that you cause for other vehicles/property. Damage to your own vehicle will not be covered.
will my insurer still regain the value of my car from whoever damaged it?
No. That'll be for you to deal with yourself.
When it comes to the ‘at fault’ driver, CTP works differently depending on which Australian state you are in. Some states have ‘no fault’ CTP, meaning everyone injured is covered
That's interesting. I wasn't aware of that.
From my understanding, lets say you had two vehicles where both vehicles had injuries, the insurance from A would pay for the injuries from B and vice versa. If B did a runner, there was some sort of public pool that covered A. If A was injured in a single vehicle accident, the pool would also be used).
To get a detailed comparison of the different schemes, you'd have to go through the various state's legistlation, but here's a very generalised/simplified comparison of QLD, VIC & NSW schemes from Canstar. Note that QLD & NSW are both privatised schemes, while VIC is govt owned.
https://www.canstar.com.au/car-insurance/queensland-ctp-insu…
The MAIC (Motor Accident Insurance Commission) advises that under this scheme, people who are injured in a road accident in Queensland are only eligible for compensation if they can prove they are not at fault. They may also be eligible for a reduced claim if they can prove they are partially at fault.
This scheme differs to the no-fault legislation operating in NSW and Victoria. In these states anyone sustaining injuries from a road traffic crash may be eligible to claim CTP coverage from the other driver involved in the crash, regardless of whether or not they caused the accident.From memory, I think VIC also provides coverage in the case of an unregistered (and hence uninsured) vehicle.
Ok so pretty much need comprehensive if im worried about my own car!
What's the value of your car?
You can get third party, fire & theft.
Not only if you are worried about your own car.
As demonstrated in a recent post: How to Prove 3rd Car's Fault in Pile-up
You need full comp insurance so that the insurance company will go in and bat on your behalf and get things resolved. As the above OP has 3rd party insurance, their insurance company is not willing to help them out.
Amazing. Thanks all! Went with Aami free roadside comprehensive!
Insurance is significantly cheaper!
No. You will be on your own trying to recover
Third party property will protect you from costs to another party when you are at fault. But no coverage for your own. And no coverage when someone else is at fault
Comprehensive will protect you when you are at fault or not at fault