Third party insurance is the most basic kind of car insurance that you can get. It covers you in the event of any damage caused to a third party or their property; a car that you crash into, for example.
Third party insurance will not cover you against damage to your own vehicle though, so you may want to opt for a higher level of cover, depending on what you think you'll need.
In This Guide:
- What will third party insurance cover me for?
- What alternative levels of cover are available?
- Is third party car insurance good value for money?
- What factors affect the cost of third party insurance?
- How to get cheap third party car insurance
- What extras are available for third party car insurance?
What will third party insurance cover me for?
If you take out a third party insurance policy, you'll be covered against any damage you cause to anyone else or their property, including your passengers.
So if you crash into someone else's car, or drive into someone's garden wall, the costs of repairs will be paid out by your insurer.
The same goes for any injuries caused to your passengers, or any accidents caused by your passengers.
What will be missing from a basic third party car insurance policy, though, will be cover against any damage to or theft of your own vehicle.
What alternative levels of cover are available?
If you think that basic third party cover isn't quite enough cover for you, then you might want to opt for the next level up – third party, fire and theft (TPFT) insurance. This will give you all of the basic third party cover, as well as cover for your own vehicle against fire damage and theft, including any damage caused in the event of a theft (or attempted theft).
If you want more than this still, you can go for fully comprehensive cover, which is the highest level of cover available – though the actual specifics of each fully comprehensive policy will vary slightly from provider to provider.
Is third party car insurance good value for money?
As a general rule, given that basic third party insurance offers the minimum cover possible, such policies tend to be the cheapest car insurance on the market.
However, this doesn't necessarily mean that you are getting good value; you may find that if you go for a policy offering more cover, you actually get more for your money.
This is because statistically speaking, drivers with only third party cover actually tend to be involved in more accidents, or at least make more claims, than those with, say, a fully comprehensive policy. This leads insurers to bump up the premiums to account for the increased number of payouts being made.
What factors affect the cost of third party insurance?
When determining your car insurance premiums, insurers assess several factors to calculate the cost:
- Your Age: Younger drivers, particularly those under 25, typically face higher premiums due to their higher risk of car accidents.
- Your Address: The traffic density and crime rates in your area can impact your insurance costs. High-risk areas with frequent theft or accidents can increase premiums.
- Your Car: The make, model, and any modifications to your vehicle influence the cost. Cars that are more expensive to repair or more prone to theft may result in higher premiums.
- Your Job: If your job requires extensive driving, your insurance may be more expensive. Frequent road use can increase the likelihood of car accidents, affecting your premiums.
- How You Use the Car: Whether you use your car for social purposes, commuting, or both will influence the cost. Higher usage can lead to increased risk and higher premiums.
- Your Mileage: The total miles you drive annually is a key factor. More miles generally mean a higher risk of accidents and therefore higher insurance costs.
- Your Driving History: Insurers will consider any previous car insurance claims, penalty points on your driving licence, and past incidents of accidental or malicious damage. A history of claims or infractions can lead to higher premiums.
How to get cheap third party car insurance
One of the best ways to keep your premiums low is to build up a good no claims discount by driving carefully and safely over time. This can take a while though, of course, the longer the better, but the discounts you get are often very large.
We found that customers applying for third-party only cover tended to have accrued less of a no claims bonus than customers applying for more comprehensive cover. This correlated with higher premium costs on average:
Third party-only: 3.25 years NCB average
Fully comprehensive: 4.08 years NCB average
Third-party, fire and theft: 3.14 years NCB average
Whether or not you have a no claims discount built up, if you want to make sure you get the cheapest third party cover available, you'll need to shop around online. By using our third party car insurance comparison service, you can do just this with little effort and lots of rewards. Just let us know what kind of policy you're after, and we'll bring you up a list of the best car insurance quotes on the market that meet your requirements.
Other factors that can influence the cost of your third party car insurance are:
- Build Up a No-Claims Discount: Each year without making a claim adds to your no-claims discount (NCD). Accumulating more years of NCD can significantly lower the cost of your car insurance.
- Park Safely: Keeping your car in a driveway or garage rather than on the street reduces the risk of theft or damage, which can help lower your premiums.
- Install Car Security: Adding security features like a Thatcham-approved alarm, immobiliser, or steering wheel lock can reduce your insurance costs by making your car less of a target for theft.
- Take an Advanced Driving Course: For young or inexperienced drivers, completing an advanced driving course can often lead to insurance discounts due to improved driving skills.
- Weigh Up the Pros and Cons: Assess whether a third-party policy is sufficient for your needs. Comprehensive insurance may offer better protection and sometimes at a lower cost.
- Compare Quotes: Always compare quotes when shopping for a car insurance policy online. This ensures you find the best coverage at the most competitive price.
What extras are available for third party car insurance?
You can often enhance your third-party insurance policy with additional coverage options. Here are some common add-ons:
- Courtesy Car Cover: This option ensures you have a rental car while yours is being repaired after an accident, minimising disruption to your daily routine.
- Breakdown Cover: This add-on helps you if your car breaks down, offering roadside assistance. However, it's worth comparing this with standalone breakdown policies to find the best deal.
- Motor Legal Protection: This coverage can assist with legal fees if you're involved in a road accident and someone makes a claim against you, helping to manage potential legal costs.
- Key Cover: If your car key is lost or damaged, this add-on covers the expense of replacing it, saving you from unexpected costs.
- NCD Protection: Protect your no-claims discount (NCD) with this add-on, which preserves your discount even if you make a claim deemed your fault.
- Personal Accident Cover: Since standard third-party insurance does not include medical expenses for injuries you sustain in an accident, personal accident cover provides financial support in the event of serious injury or death.
