A third party car insurance is the most basic car insurance you need. It is the minimum form of insurance you must have when you own a car. Third-party insurance covers the damage that you may cause to other cars as well as to other property, as well as injury to this third party. In other words, in case of an accident, a third party insurance financially protects the car, property and health of the other person. This third party car insurance is obligatory, but you may choose for more comprehensive types of car insurance cover.
Although 3rd party insurance is the minimum level you can take, there are different types of third party car insurance. Among them are (TPO) Third Party Only car insurance which is the most basic one. In addition you may also choose for Third Party damage, Fire and Theft insurance (TPFT). Lastly, there exist also the comprehensive insurances.
Note: Third Party Insurance does not protect your own car or your own property - for this you will need a fully comprehensive insurance.
Third Party Insurance Comparison
It is important that you compare third car insurance before you sign up for one. Here you can choose the insurer that offers the cheapest policy, but also you may want to look at how easy it is to report the damage, and the overall customer experience.
- In order to do a third party car insurance comparison you can compare different insurance offers, e.g. by visiting Compare the Market which is a good place to compare various offers for a short term insurance. A different comparing service is offered by Moneysupermarket.
- You will find many different temporary insurance companies there and the process they offer will make it easy for you to find the best third party insurance comparison.
- While filling in the form for a quote you can select your different options such as third party only, fully comprehensive or Third party, fire and theft. Additional cover to third party insurance is possible by selecting personal injury cover, legal cover, courtesy car cover and breakdown cover.
(TPO) Third-Party Only Car Insurance
A (TPO) Third-Party Only Car Insurance covers you against claims when you damage a car or property belonging to the third party or when a third party person gets hurt. It covers the third party in case of an accident even if it is your fault. If you have a passenger in your car and he gets hurt, a TPO insurance will cover his medical bills. However, it does not cover the cost of repairing your car. It is the minimum level insurance cover you can take in the UK. Any kind of insurance in the UK will have this basic cover. This includes a car insurance for one day, one month and 6 months.
(TPFT) Third-Party damage, Fire and Theft insurance
A (TPFT) Third Party damage, Fire and Theft insurance covers damages, fire or theft of your car. The cover does not cover your medical bills. If it is the other driver's fault, then his cover will cover your medical bills. A TPFT covers the following costs:
- The cost of replacing your car in case it is stolen and cannot be recovered.
- The cost of repairing your car in case of fire
- The cost of repairing your car in case of a break-in or an attempted theft
What happens in case of an accident when you have third party insurance?
When an accident happens, the first thing to consider is, is it your fault?
If it is your fault, your insurer will compensate the third party. Your insurer will compensate the third party for the cost of repair and if there are any injuries, it will cater for their medical bills. In such a case, the claim against you will affect your no claims discount.
If the accident is not your fault, the other driver's insurer will compensate you for the damages. Your insurer will not help you to claim from the other driver's insurer. You will need the help of a claim company to make a claim.
When is it necessary to take third party insurance?
If you own a cheap car, you can opt to take a third party car insurance since the cost of repairing it and buying a new are the same. Also, it is a good option for young drivers who are looking to cut down the insurance cost. However, if you have a new model car and you fear that repairing your car could be very expensive, taking a comprehensive policy would be a better option.
A full comprehensive policy incorporates the coverage for a 2nd party insurance policy and 3rd party insurance policy with advantages compared to a third party insurance policy. With a full comprehensive policy, you are covered against claims from third parties, while your car is also covered. Some full comprehensive policies also cover damages to your belongings, medical and legal bills. Before deciding the type of insurance policy to take, make sure to compare them in terms of costs and benefits.
Temporary Third Party Car Insurance
You can sign up for temporary third party car insurance if you are between 18 and 75 and you have UK driving license. It is essential in the following instances:
- Want to drive a vehicle for a short duration
- Want to lend your car to a friend
- Want to take a test drive
- When you want to buy a new car
Normally, the cover lasts between one to twenty eight days hence it is a great solution for infrequent drivers. Before you can sign for this policy, you have to decide whether you want a Third Party insurance only or third policy, fire and theft cover or full comprehensive cover. If you already have a No Claim Bonus, you cannot be penalized if you claim after an accident under this cover.
Is a Third Party Only Insurance Cheaper?
Statistics have shown that people with third party insurance make more claims. This makes most insurers to raise the cost of third party insurance compared to a comprehensive policy. For this reason, it is advisable to look at all the available options and choose the best policy.