Third party, fire and theft car insurance
Third party, fire and theft car insurance covers damage you cause to other people's cars and property, plus your own car if it is stolen or damaged by fire.
It does not cover your own car in a crash you cause, or damage from storm, hail or flood; those need comprehensive cover. It sits in the middle of the four levels of car insurance, and the decision usually comes down to the payout cap and where the car is kept.
By Better Rate Mate Editorial Team · Last reviewed
What third party, fire and theft covers
Moneysmart describes it as the same cover as third party property damage, plus cover for your car if it is stolen or damaged by fire. So it pays for damage you cause to other people's cars and property, and for your own car in those two situations only.
What counts as theft differs between insurers. NRMA and RACV cover attempted theft as well as theft, while Budget Direct's third party, fire and theft cover excludes damage caused by an attempted theft and items stolen from the car.
| What happens | CTP (compulsory) | Third party property damage | Third party, fire and theft | Comprehensive |
|---|---|---|---|---|
| You injure or kill someone | Covered | Not covered | Not covered | Not covered |
| You damage someone else's car or property | Not covered | Covered | Covered | Covered |
| Your car is stolen or damaged by fire | Not covered | Not covered, though some policies sell it as an extra | Covered | Covered |
| Your car is damaged in a crash you cause | Not covered | Not covered | Not covered | Covered |
| Storm, hail or flood damages your car | Not covered | Not covered | Not covered | Covered |
How the fire and theft limit works
Third party, fire and theft does not necessarily pay what your car is worth. Some policies cap the payout for fire or theft at a fixed amount, and NRMA and RACV both cap it at $10,000. Others pay up to the amount shown on your certificate of insurance. If your car is worth more than the cap, you carry the difference. Choosing agreed or market value is a comprehensive feature.
The uninsured driver extension also applies at this level with all four insurers below, up to $5,000, when an identified uninsured driver was entirely at fault.
| Insurer | Most it pays for fire or theft | Document |
|---|---|---|
| NRMA Insurance | Up to $10,000, for fire, theft or attempted theft | Car Insurance PDS, prepared 10 September 2023 |
| RACV | Up to $10,000, for fire, or theft or attempted theft | Motor Insurance PDS, prepared 2 August 2022, with supplementary PDSs to 13 July 2026 |
| Budget Direct | Up to the maximum shown on your insurance certificate; attempted theft is not covered | Car Insurance PDS Part A, prepared 21 September 2023 |
| AAMI | Up to the amount covered for your car, as shown on your certificate of insurance | Third Party Property Damage PDS (which includes fire and theft), prepared 18 September 2020 |
Is it worth it where you live?
Theft risk varies a lot by state. The ABS recorded 66,625 victims of motor vehicle theft in Australia in 2025, the most since 2008. Victoria had 24,929, up 11% and the most since 2002; NSW had 12,689, up 3%. Our state pages set out the figures for Victoria, NSW, Queensland and the rest.
If the car is parked on the street in a high-theft area and losing it would hurt, the fire and theft cover is doing real work. A garage lowers the risk but does not remove it: more than half of the vehicles stolen in NSW in 2025 were taken from residential land.
The gap that remains
Damage to your own car in a crash is still not covered. If you run into something, or a driver who cannot be identified runs into you, you pay for your own repairs. Storm, hail and flood are outside this level too, and in many places they are a bigger risk to a car than theft. Weigh that before choosing this over comprehensive car insurance.
Who it suits
It fits a car that is worth enough that losing it entirely would hurt, but not enough to justify comprehensive premiums, particularly a car parked on the street or in an area where theft is the realistic risk. Moneysmart's test for any level is whether you could get by without your car if it were written off or stolen, and whether you could pay for repairs yourself. If the answer is no, price comprehensive as well.
What to watch for
- Fire and theft payouts are capped. NRMA and RACV cap them at $10,000; check the figure on your certificate, not the label.
- Storm, hail and flood are not covered at this level, even though they can write off a car.
- Some policies exclude damage from an attempted theft. Read the definition of theft in the PDS.
- Your own car is not covered in a crash, whoever caused it, unless an uninsured driver extension applies.
Common questions
What is the difference between third party fire and theft and comprehensive?
Comprehensive also covers accidental damage to your own car and weather damage, and lets you choose agreed or market value. Third party, fire and theft only covers your own car when it is stolen or burns, often up to a cap; if you hit something, the repair is yours to fund.
Does third party, fire and theft cover storm or hail damage?
No. Moneysmart describes third party, fire and theft as covering your car only if it is stolen or damaged by fire. Weather damage to your own car needs comprehensive.
Is third party fire and theft worth it?
It can be for a car worth more than you could comfortably lose to theft or fire, but not enough to justify comprehensive, especially one parked on the street where theft is common. Check the payout cap first: NRMA and RACV cap fire and theft cover at $10,000.
Does third party, fire and theft cover an uninsured driver hitting my car?
Only in a limited way. Many policies include an uninsured driver extension: in the AAMI, Budget Direct, NRMA and RACV policies on this page it pays up to $5,000 towards your own car when an identified uninsured driver was entirely at fault, and you need their name, address and registration. If the other driver was insured, you claim the repairs from them or their insurer instead.
Do insurance companies know if you've had a claim?
They can find out. Insurers ask about your claims history, and some say they share and collect claims information with other insurers: Allianz's PDS lists other insurers and insurance reference bureaus among the places it may collect information from, and Budget Direct's says it may share information with other insurers to help them assess insurance risks. Always answer claims history questions accurately.
