I only had third party cover when my car was hit, can I upgrade now and have that damage covered?

13 October 2026

I only had third party cover when my car was hit, can I upgrade now and have that damage covered?

If your car was damaged before you buy comprehensive cover, or before an upgrade takes effect, do not assume the new cover will pay for that earlier damage.

The clearest source in the material we have is about when cover starts. Budget Direct says, "Your Budget Direct car insurance will take effect the day you buy the policy, unless you’ve chosen a later date for your cover to begin, in which case it will take effect on that date." That is the practical point most drivers need. A policy or upgrade has a start date. Damage that already happened is not made new by changing the policy afterwards.

There are also stated limits and waiting periods in some comprehensive policies. Youi says, "Loss, damage or legal liability caused by, resulting or arising from flood, storm, hail or bushfire during the first 72 hours of your policy first being purchased is excluded unless certain conditions apply." Youi also says, "Where you have increased your cover or reduced your excess within 72 hours of a flood, storm, hail or bushfire occurring, cover will be limited to the amount that was effective prior to the change."

So if you are looking at fresh damage and thinking about upgrading today, the safe reading is simple. New cover starts when the new policy starts, and some events have specific waiting period rules. Before you pay to change anything, confirm the start date and any event based limits with the insurer in writing.

How insurers describe changing cover mid term

If you are trying to switch from third party property to comprehensive in the middle of the policy period, do not assume it is just a toggle inside the same contract.

RACV says this can mean "changing your policy type by cancelling your existing policy and purchasing a new one." That matters because a new policy purchase has its own start date, and because some insurers treat a change of policy type as a new contract rather than a backdated fix.

Taken together with Budget Direct's wording about cover taking effect on the day you buy it, the practical message is this: if the damage is already there, buying comprehensive now is not a reliable way to shift that existing repair bill onto your own insurer.

What we can and cannot say about third party property cover

Exactly what third party property damage cover includes and excludes is set out in your own policy wording, and it is not the same from one insurer or product to the next. Check your product disclosure statement, or ask your insurer to point you to the section that applies to your cover today.

If another driver caused the damage, your repair was not dependent on comprehensive cover in the first place

This is the part many Melbourne drivers miss when they are under pressure.

If another identified driver caused the collision, the repair does not automatically have to come from your own comprehensive policy. That matters if you only had third party cover, or no cover for your own car damage at all.

What we do in Victoria is help not at fault drivers pursue the repair cost from the at fault driver's insurer, while also arranging a replacement vehicle while the repair runs.

That means the question is often not, "Can I upgrade my own policy after the accident?" It is, "Can the at fault driver's insurer be approached for the repair and my transport needs now?"

For many drivers in Melbourne and across Victoria, that is the more useful path, because it does not depend on turning today's comprehensive purchase into cover for yesterday's damage.

A word on direct recovery from an insurer

There is a route to recovering from an insurer directly, and it is worth seeing how narrow it is before you rely on it.

The source says that where section 51 applies, one condition is that "the insured or third party beneficiary has died or cannot, after reasonable inquiry, be found". If that condition is met, it says "then the other person may recover from the insurer an amount equal to the insurer’s liability under the contract".

That is a narrow provision for a narrow situation. It is not a general rule that every uninsured or third party only driver in Victoria can always recover directly from the at fault driver's insurer.

So if you are trying to work out your next step after a crash, the practical answer is to have the accident circumstances checked properly. The right path depends on who was at fault, whether the other driver is identified, and how their insurer responds.

What to do if you are in Victoria and the damage is already there

If you were not at fault and your car is now off the road, do this first:

1. Do not assume buying comprehensive today will fix damage from the earlier accident.
2. Check the effective date of any new policy or policy change.
3. Check whether the insurer treats a change of policy type as a new purchase.
4. Keep the claim focused on the at fault driver if they caused the damage.
5. Get help with the repair recovery process and a replacement vehicle arrangement instead of claiming on your own policy if that is the better path.

How we help in Melbourne and Victoria

We help drivers who were not at fault, including drivers with third party only cover and uninsured drivers, by:

• recovering the cost of a repair from the at fault driver's insurer
• arranging a replacement vehicle while your car is off the road
• managing the not at fault claim so you do not have to claim on your own policy

If you are in Melbourne or elsewhere in Victoria, and you are looking at accident damage that happened before any upgrade could start, talk to us about the not at fault path instead. It may be the practical route that was available to you all along.