A simples guide

Explaining third party fire and theft car insurance

If you’re going to drive on the public roads you need car insurance. When you’re insuring your car, you have three choices of policy cover, comprehensive, third party, and third party, fire and theft. 

What is third party fire and theft insurance?

You’ll be covered for:

Third party damage

This means your policy covers you for the cost of any damage to the other person’s property or any injuries that you cause to the third party. This is most likely to be another car if you’ve had a bump but would also apply if you hit their wall or knocked down their fence.

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


Insurance of this type covers 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 would need to report the crime to the police and get a crime number that you can quote to the insurer.


The policy will cover you in the event that your car is stolen. It will also cover you if your car is damaged during an attempted theft. 

stolen car
fire damage

Why would I buy this sort of insurance?

Making the decision on which type of insurance to buy really comes down to your own personal circumstances. It will suit some people but not others.

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 plan on driving it very often

Is it cheap?

To start with, insurance depends on many factors such as your age, your previous driving history, where you live, how many miles you drive, the security features of your car and so on.

You may assume given the differences in protection that third party, fire and theft insurance is cheaper than comprehensive insurance but that isn’t necessarily the case.

As third party policies tend to attract higher risk drivers, the statistics that insurers 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 clever research people, in February 2016 the average comprehensive premium was £235 cheaper than that for third party, fire and theft.

If you don’t compare prices, you simply won’t know which policy is cheapest for you. 

stolen car

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