Third party car insurance in New Zealand
Third party only pays for damage you cause to other people's vehicles and property. It pays nothing for your own car — not if you crash it, not if it burns, not if it is stolen. It is the narrowest of the three kinds of cover sold in New Zealand.
Last checked against insurers' own pages and wordings on 2026-09-16
How does third party only compare with the other levels?
Covers the damage you do to others. Nothing for your car. Of the four things the three levels differ on, it pays for 1: damage you cause to other people's vehicles and property. It pays nothing towards your car stolen; your car damaged by fire; accidental damage to your own car.Limits and exclusions are set by each policy’s own wording.
- Worth reading first
Third party only
- Damage you cause to other people's vehicles and property Yes
- Your car stolen No
- Your car damaged by fire No
- Accidental damage to your own car No
Covers the damage you do to others. Nothing for your car.
Third party fire and theft
- Damage you cause to other people's vehicles and property Yes
- Your car stolen Yes
- Your car damaged by fire Yes
- Accidental damage to your own car No
Third party, plus your car if it burns or is stolen.
Comprehensive
- Damage you cause to other people's vehicles and property Yes
- Your car stolen Yes
- Your car damaged by fire Yes
- Accidental damage to your own car Yes
The only level that pays for your own car in a crash you caused.
This is what the three kinds of cover are, by definition. What an individual policy covers, excludes and limits is set by its own wording — see what each insurer’s policy says, and read the wording before you buy.
What it pays for
- Damage you cause to somebody else's vehicle, up to a limit set out in the policy wording.
- Damage you cause to other people's property — a fence, a gate, a shopfront — up to the same kind of limit.
- In most wordings, legal costs connected with a claim somebody makes against you. Whether that is included, and on what terms, is set by the particular policy.
What it does not pay for
- Repairs to your own car after a crash, whoever was at fault.
- Your car if it is stolen, or if it is damaged or destroyed by fire.
- Anything at all for your car being written off.
What should I check before buying third party only?
3 things, and none of them is settled by the level you pick. They are the points where two policies with the same name behave differently at claim time, so they are worth asking about on the quote call rather than reading about afterwards.
- The dollar limit for third party property damage — it is a number in the wording, and it is not the same at every insurer.
- The excess you would pay on a third party claim, which is on your own schedule rather than on any public page.
- Whether the insurer offers this level at all. Of the eight insurers on this site, seven do and one does not.
Which NZ insurers sell third party only?
7 of the 8 insurers on this site publish that they sell it: AA Insurance, AMI, NZI, State, Tower, Trade Me Insurance, Vero. Each one is quoted below from its own page, with the date we read it. Every list of insurers on this site is in alphabetical order by name. Nothing is ordered by whether an insurer pays us, and no insurer can pay to change its position, its facts or whether it appears at all.
How the links work. We have no paid partners yet. Every link on this site is an ordinary, unpaid link to the insurer's own website, and no insurer pays us for a mention, for placement or for anything we publish. Every list of insurers on this site is in alphabetical order by name. Nothing is ordered by whether an insurer pays us, and no insurer can pay to change its position, its facts or whether it appears at all. How we make money.
“Third Party — Cover for accidental damage that you have caused to someone else's car” — AA Insurance, Car Insurance, read 2026-09-16
“Comprehensive / Third Party, Fire & Theft / Third Party Only” — AMI, Car Insurance, read 2026-09-16
“Third Party Only — This option covers damage you cause to someone else's vehicle or property. Available for NZI Select and Echelon.” — NZI, Vehicle Insurance, read 2026-09-16
“Comprehensive / Third Party, Fire & Theft / Third Party Only” — State, Car Insurance, read 2026-09-16
“Third party cover: This option pays for damage you cause to other people's car and property, but not your own.” — Tower, Car Insurance, read 2026-09-16
“Third Party Fire & Theft: Pays for damage you cause to other people's cars and property, but not your own. You're also covered for loss through fire or theft.” — Trade Me Insurance, Car Insurance, read 2026-09-16
“With three levels of motor insurance cover — Comprehensive, Third Party, Fire & Theft, and Third Party” — Vero, Car Insurance, read 2026-09-16
Spotted something out of date? Tell us and we’ll fix it or mark it unchecked. We aim to do that within 5 working days.
Common questions about third party only
If someone else hits me, does third party only cover my car?
No. Third party only never pays for your own car. If another driver is at fault, the usual route is a claim against that driver or their insurer, and how that goes is between you, them and their insurer. This site is not able to advise you on a particular claim.
Is third party only the same as compulsory third party?
No. Some countries require drivers to hold third party cover by law; New Zealand does not, largely because ACC already covers injuries from road crashes. Damage you cause to other people's cars and property is still yours to pay. Is car insurance compulsory in NZ? sets out the sources.
Does third party cover fire or theft?
No. That is the difference between third party only and third party fire and theft, which adds fire and theft of your own car and nothing else.
Sources
- Consumer Protection (Ministry of Business, Innovation and Employment), Car insurance
- AMI, Car Insurance (cover levels)
- Tower, Car Insurance (cover levels)
- Trade Me Insurance, Car Insurance (cover levels)
- Vero, Car Insurance (cover levels)
Read on 2026-09-16. If a source and this page disagree, the source is right.