Monday, Jun 23, 2008 at 14:35
Compulsory Third Party - it covers the person in the vehicle that is injured. You can't be on the road without this rego, you pay it automatically with your rego renewal probably without noticing.
Third Party is insurance you pay for when you hit a Rolls Royce so the insurer pays for the damage to the other party, but not yours.
Eg:
Whenever one of my vehicles falls below a certain value I drop the expensive Compulsory insurance and get the third party, usually sold with or without fire and theft insurance. My Prado went from a comprehensive bill of $650 a year to a third party property insurance bill of about $124 a year. This does not cover damage to my vehicle, just the vehicle you hit.
If someone hits you then you have to sue them to get your repairs.
Hope that makes sense. Don't be confused by the "third" in third party, it only means "someone else not you".
After you factor in the saving you make each year from having third party and not comprehensive, after a few years the saving of the excess can often cover the cost of a small accident.
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