Compare Third Party, Fire & Theft Insurance

What is Third Party Fire and Theft Car Insurance?

Choosing third party fire and theft car insurance will give you coverage for incidents that include:

• Damages you cause to another person’s vehicle in an accident.
• Injuries you cause to others in an accident.
• Damages to your vehicle due to fire.
• Your vehicle is stolen.

How is it Different from Third Party Insurance?

The difference between third party and third party fire and theft insurance? The extra protection offered by the latter.

Both provide coverage for damages or injuries to third parties caused by your vehicle, but third party fire and theft insurance also includes cover for your own vehicle in case of theft or fire damage.

What Doesn’t Third Party Fire and Theft Car Insurance Cover?

There are limits to this type of insurance; it doesn’t cover:

• Damages to your car in an accident that you’re at fault for (comprehensive insurance policies does cover this).
• Theft of personal items from your vehicle.
• Damage due to flood or storm. (Comprehensive insurance policies can cover this).

Do You Need Third Party Fire and Theft Cover?

Trying to decide if third party fire and theft car insurance is right for you? Here are several things to consider:

How much your car is worth

If your vehicle holds significant monetary (or sentimental) value, third party fire and theft insurance can provide you with peace of mind, knowing that you’ll receive compensation if it’s stolen or damaged by fire.

Where you usually park it

Do you typically park your car in a secured garage or on the street? Cars parked on the street or in areas with higher crime rates are more prone to theft or vandalism. If that’s the case for you, the theft protection offered by this type of insurance could be particularly beneficial.

How comfortable you are with risk

Replacing or repairing your car if it is damaged by fire or stolen can be expensive. If you’d prefer not to be hit with a big bill, third party fire and theft insurance can help mitigate this risk.

However, if your car is of lower value, or if you have the financial means to replace it without insurance, you may be okay with the reduced coverage (and cheaper cost) of standard third party insurance.

How Much Does Third Party Fire and Theft Car Insurance Cost?

How much a policy costs can vary depending on a few things:

• Driver’s age and experience.
• The make, model, and age of your vehicle.
• Where your vehicle is parked overnight.

To reduce costs, consider:

• Maintaining a good driving record.
• Installing approved security features in your vehicle.
• Choosing a higher excess.

How Does Excess Work?

The term ‘excess’ refers to the amount of money you agree to pay towards a claim on your insurance policy. When you make a claim, your insurance provider will subtract your agreed excess from the total payout.

Let’s say your car was stolen and its value was NZD 10,000. If you had an excess of NZD 500 the insurer would pay out NZD 9,500, and you would need to cover the remaining NZD 500.

There are typically two types of excess:

• Compulsory excess: Determined by your insurer, this is a fixed amount you’ll have to pay for each claim you make. The amount often depends on the driver’s age and experience, and the type of cover you’ve chosen.
• Voluntary excess: This is an additional amount that you choose to pay on top of the compulsory excess. By choosing a higher voluntary excess you can reduce your insurance premiums.

You should set your excess at an affordable level. While a higher excess can lower your premiums, it also means you’ll have to pay more out-of-pocket when you make a claim.

Does Third Party Fire and Theft Cover Roadside Assistance?

Generally, roadside assistance isn’t included in a standard third party fire and theft car insurance policy, but many insurers offer it as an optional extra. If roadside assistance is something you want, check this with your insurer.

How to Make a Claim on Your Third Party Fire and Theft Car Insurance?

If you need to make a claim, these are the steps you’ll generally need to follow:

• 1. Let your insurer know as soon as possible.
• 2. Give them all the necessary information about the incident.
• 3. Provide any required documentation.
• 4. Cooperate promptly with your insurer throughout the claims process to avoid any delays.

Key Tips for Choosing the Right Third Party Fire and Theft Car Insurance Policy

With many different insurers to choose from it can be easy to feel overwhelmed when figuring out which policy is right for you. To make the process easier, here are a few things to consider:

• Review the insurer’s claim handling process.
• Check customer reviews of the insurance provider.
• Understand any policy exclusions.
• Look at optional extras and their cost.
• Compare premium costs among different providers.