Third-party, fire and theft car insurance

Of the three main options, third-party, fire and theft insurance is the mid-level of cover you can get for your car.

It gives you more cover than basic third-party insurance, but not as much as a comprehensive policy. Crucially, it won’t pay out if your own car is damaged in an accident.

It’s illegal to drive on UK roads without at least third-party car insurance.

Third-party, fire and theft insurance typically won’t cover:

• Damage to your own vehicle in an accident that was your fault – you’ll need to pay for repairs out of your own pocket

• Damage to your personal possessions (such as your phone) in a crash

• Repair or replacement costs if you left your car unsecured – if you left it unlocked or forgot to close a window, for example

• Medical costs if you’re injured in an accident.

If the accident is someone else’s fault, their insurance should cover you.

This will come down to your personal circumstances. Third party, fire and theft insurance may be a good option if:

• Your car is cheap to repair and spare parts are plentiful

• Your car isn’t worth much and you can afford to replace it if it’s written off

• You’re confident repairing the vehicle yourself

• You don’t drive very often.

If you’re not prepared to pay for your own repairs if you have an accident, third-party, fire and theft insurance might not be the way to go.

One option could be to take out third-party, fire and theft insurance, and pay into a high-interest savings account so you have money set aside if you need to repair your car.

You’d be forgiven for assuming that third-party, fire and theft policies are cheaper than comprehensive car insurance.

However, that’s often not the case, so it’s important to compare quotes from a range of insurance providers.

Third-party policies tend to attract higher-risk drivers, meaning insurance providers are more likely to have to pay out. This is why third-party, fire and theft could actually cost you more than comprehensive insurance.

According to our data, the typical comprehensive premium is around £593, while third party fire and theft comes in at £962¹.

However, the price you’re quoted depends on your individual circumstances, so it’s always worth comparing to find the right policy for you at a price you can afford.