Third party, fire and theft meaning
Car insurance can be a bit boggling - with lots of different insurance terms. This guide breaks down everything you could need to know about third party, fire and theft car insurance.
What is third party, fire and theft insurance?
Third-party, fire and theft insurance is a type of car insurance.
When buying car insurance, there are 3 different types of policies to choose from:
- Comprehensive
- Third party
- Third party, fire and theft.
Third party is the minimum cover required by law.
Third party, fire and theft car insurance meaning
- Third-party damage - for damage caused by you to another vehicle, property, or person
- Fire damage - for damage to your car caused by a fire
- Theft - for if your car’s stolen or for damage caused by the attempted theft of your car
Third-party damage
The term third party refers to someone other than the insurers and the insured. This part of the policy might cover the cost of repairing a fence if you drive into it, or compensation costs if someone else gets injured in the accident you caused.
Fire damage
Fire insurance is designed to cover your car from damage caused by a fire, whether it’s intentional (arson) or caused by an accident.
Theft
If your car is stolen this cover is designed to pay for the cost of its replacement or the cost of fixing something like a broken window caused by an attempted theft.
What’s not covered?
The things that typically aren’t covered by third party, fire and theft insurance are…
- Damage to your own car
- Injury to you
- Damage from a theft or fires that are seen as being caused by negligence - like if you left your car door unlocked
Comprehensive insurance vs third party fire and theft
If you want cover for your own car if it’s damaged in an accident you’ll need another type of insurance. Comprehensive cover provides the highest level of protection, as it includes third party, fire and theft, and also is designed to cover you and your car.
Other additional cover can be added to some third party fire and theft insurance policies, like windscreen cover, but fully comprehensive policies often include this as standard.
Whether third party fire and theft or comprehensive cover is the right insurance for you will depend on your personal circumstances. So, should you get third party cover?
Car insurance in the UK is mandatory, but what are the reasons you might choose third party, fire and theft car insurance over comprehensive cover?
- It would be cheap to repair your car - because you have a common car type with easy-to-source parts
- You can afford to replace your car if an accident makes it unfixable
- You’re a mechanic and would be able to fix your car yourself
Third party, fire and theft insurance might not be a good fit if:
- You wouldn’t want to or aren’t able to pay for repairs to your car if there’s an accident
How much does third party, fire and theft car insurance cost?
How much a third party fire and theft car insurance would cost you will depend on your personal circumstances.
While you may think that third party, fire and theft insurance would cost less than comprehensive cover because it covers fewer situations, you may actually find that it’s more expensive. This is because insurance providers will often charge more because these drivers are associated with being high-risk. This means more likely to make a claim.
Can you get no-claims bonus protection on third party, fire and theft insurance?
While a no-claims bonus typically can be protected, whether or not you can get no-claims bonus protection on third party, fire and theft car insurance is up to the insurance provider from which you buy your policy. Find out all you need to know about no-claims bonus protection on car insurance here.
A few final tips…
- It’s also a good idea to check the finer details of policies before you purchase.
- For example, even if you have third party, fire and theft cover in the UK, most insurance providers will only cover just the third party when driving abroad.
- While the cost of a policy will depend on your personal circumstances, a comprehensive policy can often be a cheaper option.
Urban Jungle is not a financial advisor and information in this article should not be taken as advice or recommendation.
