Compulsory Third Party Car Insurance (CTP) NZ

What is third party car insurance?

Third party car insurance is a type of car insurance that does not cover your own car, but covers any other affected people, vehicles or property in the event of an accident that is considered to be your fault. Because this type of car insurance does not cover your own car or property, it works well for low-value vehicles that can be replaced or repaired easily. However, there are also policies that provide cover should your car be damaged by an uninsured vehicle.

 There are a vast assortment of car insurance companies in NZ that offer third party insurance, which is often the cheapest type of car insurance.

What does third party car insurance usually cover?

Damage to someone else’s car

Without insurance, covering the cost of repairs (or replacement!) for someone else’s car can be crippling when you have to repair or replace your own car as well. Third party car insurance ensures that any vehicle other than your own that may be damaged as a result of your actions will have its repair costs covered by the insurance company, leaving you free to focus on your own car.

Fire Damage

A car caught in a fire can suffer from irreparable damage. Damages caused by fire are covered under a “Third Party, Fire and Theft” policy that is different from a Third party policy, which only covers damages sustained by other vehicles, people or property in an accident deemed to be your fault. This distinct policy is important as it contains third party protection whilst also ensuring that your car remains covered if damaged by fire.

Theft

Third Party, Fire and Theft policies also cover loss or damage of your car if it is stolen. Theft can occur to any car at any time, and like fire, can end up in the car being damaged or left beyond repair. Most insurers will cover any repair costs needed, or if the car is irreparable, will pay you the cars agreed upon value. Theft is not covered under just third party car insurance.

Third party car insurance optional extras

Car insurance quotes for third party insurance can include a number of optional extras, among them excess-free glass cover. This means that if your cars windows or windscreen are damaged, you won’t have to pay excess to have them repaired. Online car insurance quotes can factor in this and other extras that you may wish to add to your third party car insurance.

Third party car insurance FAQs

No. Third party policies on their own will only cover any damage sustained by other vehicles in an accident deemed to be your fault. Protection for your car from fire and theft will only be covered in a “Third Party, Fire and Theft” policy.

Can I get excess-free glass cover on my policy?

Yes, you usually can. This and other optional extras can be added through discussions with your insurer. These optional extras may mean that the cost of your policy rises, so it is important to obtain a car insurance quote before deciding on any of these extras.

Can you drive someone else’s car with third party car insurance?

No. This is usually only covered with comprehensive car insurance policies. Third party car insurance will only apply to your own car, as well as third party, fire and theft policies. You will be liable to pay for damages caused to other parties' vehicles if you are in an accident whilst driving someone else’s car.

How much does third party car insurance cost?

The cost of third party car insurance varies depending on a range of factors such as your age, the car's age, its condition, and its make and model. Third party car insurance is however consistently cheaper than any other type of car insurance, including the third party, fire and theft policy. The cost of third party car insurance may also vary depending on which insurer you choose to go with, hence it is important to compare quotes between NZ insurance companies!