A simples guide

Third party cover insurance

Many people in the UK who opt for third party cover insurance do so because they think it’ll be cheaper. Not knowing that in certain cases comprehensive insurance might work out cheaper for them.


What does third party insurance mean?

Third party insurance is the legal minimum requirement in order to drive a vehicle on the road in the UK.  

In the tiniest of nutshells, third party car insurance means you will be covered for any damage you cause to another person’s car or any injury you cause to somebody else including passengers in your own car.

But any third party cover you take out also means you won't be covered for any injuries you suffer or damage to your car.   

What are the advantages of third party cover?

The biggest advantage third party insurance offers drivers is that it’s often more affordable, which is good news for those who are on a budget. But that third party cover is actually the cheapest option is often a common misconception. But we’ll get to that.

Third party insurance can also be advantageous for people whose car isn’t worth very much. But then this also depends on several other circumstances such as, a no claims bonus and the area you live in, in case it’s considered a high risk for crime, for example.  

multiple keys

Who does third party insurance cover?

Not you! Third party car insurance covers other people (third parties). Which means if you’re involved in any kind of accident that’s deemed to be your fault, then your basic third party insurance will cover any damage to the other driver’s vehicle. It will also cover the other person’s health (in case they were hurt) and even injury to an animal, as well as someone else’s property if it gets damaged.   

If you’re involved in an accident that wasn’t your fault, then the other driver must have third party car insurance to cover you and your vehicle, since your own third party insurance will not cover you. 

steering wheel and road

Is third party coverage the cheapest option?

Third party car insurance is usually mistaken for being the cheapest, and it certainly can be for some people. However, market changes means that for some times this isn’t necessarily the case. And what’s more, many drivers are completely unaware of this.

Sometimes third party car insurance doesn’t really represent the best value for money. So it’s important to compare different levels of car insurance and make sure all your personal circumstances are taken into consideration in order to find out what’s the cheapest and best type of car insurance for you. You never know, it could end up being fully comprehensive.


What is the average price difference?

If you were to opt for a third party cover only, you would be looking at an average price of £1,115.86.

As we mentioned earlier, this will only cover third parties. So any damage or loss to your car in a fire or theft would result in you having to fork out from your own pocket (which is never a nice feeling).  For third party fire and theft, the average price presented on site is £758.83.

If you decided to go fully comprehensive though, the average price is just £523.76. We told you it could be a lot cheaper. You can compare car insurance quotes now and make sure that you’ve got the right level of cover at the right price for you.

Our average premiums are based on all our customer quotes, from people with different age ranges, addresses and driving histories. You may find a cheaper or more expensive quote based on your personal circumstances.

All average price amounts based on comparethemarket.com data in February 2016

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