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Third party, fire and theft car insurance

Third party, fire and theft car insurance

If you’re going to drive on public roads, you need car insurance. You have three choices of policy cover when it comes to insuring your car, namely comprehensive, third party, and third party, fire and theft insurance. We look at third party, fire and theft car insurance in more detail below.

Daniel Hutson
From the Motor team
4
minute read
posted 8 NOVEMBER 2019

Third party, fire and theft car insurance

Third party, fire and theft car insurance offers cover for three things – third party damage, fire and theft. It doesn’t cover your own vehicle should it be damaged in an accident.  

Third party damage

This means your policy could cover you for the cost of any damage to another person’s property or any injuries that you cause to a third party. This is most likely to be another car, but would also apply if you hit someone’s wall or knocked over their fence.

It’s very important to remember that this type of insurance doesn’t cover the costs of damage to your own car.

Fire

Insurance of this type could cover you in the event that your car is damaged by a fire. This could be accidental or the result of arson. In the case of the latter, you’d need to report the crime to the police and get a crime number that you can then quote to your insurance provider.

Theft

A third party, fire and theft insurance policy could also cover you in the event that your car is stolen. Along with this, you may also be covered for damage to your car as a result of an attempted theft.

Is third party, fire and theft car insurance the right insurance policy for me?

This will come down to your own personal circumstances. Third party, fire and theft insurance might be suited in situations where:

  • The car is cheap to repair, and spare parts are plentiful
  • The car has a low market value and you would be able to afford to replace the car if it was involved in a serious collision
  • You are confident repairing the vehicle yourself
  • You don’t drive it very often.

Obviously, if taking on the responsibility of footing the bill for your own vehicle should it be damaged in an accident doesn’t sound like a good idea, then third party, fire and theft insurance might not be the way to go.

What determines the cost of third party, fire and theft car insurance?

The cost of any type of car insurance depends on many factors, such as your age, your previous driving history, where you livehow many miles you drive, the security features of your car and so on.

Is third party, fire and theft car insurance cheaper than comprehensive car insurance?

No, third party, fire and theft car insurance policies aren’t always cheaper than comprehensive car insurance. That’s why it’s so important to compare quotes from a wide range of insurance providers.

As third party policies tend to attract higher risk drivers, the statistics that insurance providers use indicate that the chances of paying a claim on this type of policy are higher. As a result of this, third party, fire and theft policies could actually cost you more than a comprehensive policy.

In fact, according to our data, in August 2019 the average comprehensive premium was £637^^ while third party fire and theft came in at £1,025 on average^^^.

^^50% of people could achieve a quote of £637.00 per year for their fully comprehensive car insurance based on Compare the Market data in August 2019.
^^^50% of people could achieve a quote of £1,025.00 per year for their third party fire and theft car insurance based on Compare the Market data in August 2019.

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