I've got a used car for around $3K and I don't care if it gets stolen or damaged. So I've planned to do third party insurance which is costing me around $250 per year as compared to full insurance which costs around $800 per year.

Just wanted to check few things on third party option
1. Will Vicroads gladly accept it while registering car on my name.
2. Will my insurer pay for any damage caused to other's cars, houses, etc in case of accident. I understand during accident I need to pay for my own and my car's damages.
3. Any other caveat in third party?

Firstly, who has quoted that much for a $3,000 car? Our car fully comp is only around $350.

In answer to Q1 -when you pay your rego in Victoria, a portion of the premium goes to the TAC. This is the Compulsory Third Party Insurance and the only insurance you HAVE to pay. It only covers medical costs etc in case of accident and not vehicles. VicRoads won't care what private insurance you have taken out (third party or comprehensive) as you are not legally required to have either.

$3k is the used's car price. Whereas $250 (third party) and $800 (comp.) are two options for me. Just wanted to check that if lot of people generally go with 'third party property damage' insurance.

Got it! But I think having a 'third party property damage insurance ' is good otherwise I may have to pay for other's vehicle damages too. So I'll go with it, seems safe

Totaly agree!

Mine is about the same on my Excel. $800 is a rip-off.