Third party, fire and theft car insurance is a mid-level of cover for your car. It’ll pay out for damage you cause to other vehicles or property, or if your car is stolen or damaged by fire. It won’t pay out for damage to your own car after an accident that’s your fault. Read on for full details of what it does and doesn’t cover, how it compares to fully comprehensive cover and how to keep costs down.
Third party, fire and theft car insurance is designed to cover you when your vehicle is stolen or damaged by fire, or if you’re responsible for an accident that damages someone else’s vehicle or property. It won’t cover accidental damage to your own car, though.
It’s a mid-range level of cover, sitting between:
Most mainstream car insurers will have a third party, fire and theft option. Whether you’re looking for insurance using a price comparison site (such as Finder’s car insurance comparison) or an insurer’s own website, there should be an option to show only third party, fire and theft policies.
We wouldn’t necessarily recommend defaulting to this, though. It’s worth viewing fully comprehensive policies too, so you can compare prices and levels of cover. You may find that some comprehensive policies are competitively priced compared to third party, fire and theft options.
Third party, fire and theft insurance is a step above basic third party cover, so offers reassurance you won’t be left out of pocket if your car is stolen or damaged by fire (2 of the most common risks).
There are a couple of reasons why you may want to consider this type of cover for your vehicle:
Bear in mind that, in some cases, third party, fire and theft cover can actually be more expensive than a comprehensive policy. It’s worth getting a quote for both options, to make sure you are getting the best deal possible.
As with any car insurance policy, your premium will depend on a number of things.
When you apply for a third party, fire and theft policy, you’ll need to answer questions about your car and where you live. Your answers to these questions reveal a range of risk factors that can affect the cost of cover, such as:
A typical third party, fire and theft policy includes:
Importantly, third party, fire and theft insurance won’t cover you for damage to your own car or injury to its occupants in an accident that’s your fault.
As with any car insurance policy (even fully comprehensive), there will be a number of other exclusions too, such as:
Depending on your insurer and your policy, there are likely to be more car insurance exclusions that you wouldn’t be able to claim for, so (boring as it is), always read the small print.
With several different types of car insurance available, it can be tricky to work out which type of policy is the best fit for you. To help make your choice easier, we’ve summarised the key points of what is and isn’t typically covered under each type of car insurance.
| Cover | Comprehensive | Third party, fire and theft | Third party |
|---|---|---|---|
| At-fault damage to other vehicles or property |
|
|
|
| At-fault damage to own vehicle |
|
|
|
| Fire damage |
|
|
|
| Theft of car |
|
|
|
| Windscreen damage |
|
|
|
*Cover varies by provider
If you are involved in an accident that is another driver’s fault, damage to your car or property should be covered by their insurance policy. However, you should still inform your insurer about the accident.
Sometimes, but not always. Depending on your personal circumstances, third party, fire and theft policies can sometimes be more expensive than fully comprehensive cover.
So don’t make any assumptions. Get quotes for both types of cover so you can work out which is better (and cheaper) for you overall. You may get a pleasant surprise.
Yes. A no claims bonus is a discount on your car insurance premium in exchange for building up years of claim-free driving. Different insurers offer different levels of discount, but in general the longer you drive without making a claim, the bigger the discount is likely to be. You can transfer your years of no claims bonus between insurers if you switch.
You can build up a no claims bonus whether you have third party, third party, fire and theft or fully comprehensive cover.
Keep the following tips in mind to help you save money on your car insurance premiums:
As is often the case when it comes to insurance, the right type of policy depends on your personal circumstances.
One of the key things to consider is whether you could afford to pay for replacement of or repairs to your own car following an accident that’s your fault. If not, comprehensive cover is likely to be a better option. Comprehensive insurance is also more likely to include, as standard, extra cover that you might find useful – cover to drive other people’s cars (on a third party basis) for example.
Even if you’re pretty sure you know what level of cover you need, we’d recommend comparing costs and levels of cover for both comprehensive and third party, fire and theft before making a decision. You might find that comprehensive cover is surprisingly affordable.
We ran quotes with one of the UK’s biggest insurers for a 51-year-old Londoner with a Ford Fiesta, based on a £250 excess. In this scenario, the driver would have paid around £100 less for third party, fire and theft cover but, importantly, would have had to foot any bills for repairs to their car following an “at-fault” accident.
Annual payment = £1,163
Annual payment = £1,069
Third party, fire and theft insurance might seem like a good compromise between fully comprehensive cover and the bare minimum legal requirement of third party cover. And at face value, it probably is. That’s because it gives you the confidence that you’ll be financially protected if your car is stolen or damaged by fire, 2 common causes of insurance claims. But even though third party, fire and theft offers less cover than comprehensive insurance, it isn’t always cheaper. Always check both options before you take the plunge.
There’s no escaping Halloween as October draws to a close. We looked into how much is spent on Halloween each year.
