Third party, fire and theft car insurance

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.

What is third party, fire and theft insurance?

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:

• Third party insurance, which is the minimum legal requirement to drive a car and only covers damage to other people’s cars or property, and;
• Fully comprehensive insurance, which includes everything that third party, fire and theft insurance covers, plus accidental damage to your own car.

How do I get third party, fire and theft car insurance?

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.

When should I get third party, fire and theft car insurance?

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:

• It can (sometimes) be cheaper than fully comprehensive car insurance. Third party, fire and theft insurance is a mid-level policy option that combines a reasonable range of cover with affordable premiums. Because it doesn’t offer as complete a level of cover as fully comprehensive car insurance, it can be more affordable. Don’t assume this is always the case though – some comprehensive policies may be equally competitive.
• It can be a good choice if your car is fairly low value. If your car is a little older and perhaps not worth as much as it used to be, third party, fire and theft cover may offer the right combination of essential cover with cheaper premiums. You should probably only opt for it if spare parts are plentiful and cheap, though, as you’ll need to pay for repairs yourself in the event of an accident.

How much does third party, fire and theft car insurance cost?

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:

• The car you drive. The more expensive or powerful your vehicle is, the more it will cost to insure. Whether or not it has a security system fitted can also affect premiums.
• Where you live. If the area where you live has a high rate of theft, expect to pay more for cover. You can also expect to pay more if your car is kept on the street rather than locked in a garage.
• The insured drivers. The age, experience, driving record and claims history of all drivers will be assessed by the insurer when determining your premiums. Young drivers pay more than older drivers, while safe drivers with a clean record will be cheaper to insure than those with a chequered history.
• Other factors. Is the car used for business or just private use? How many miles do you drive each year? Has the car been modified at all? Your answers to all of these questions will have a bearing on how much you pay for cover.

What does third party, fire and theft insurance cover?

A typical third party, fire and theft policy includes:

• Cover for any injury or damage caused to other people and their vehicles or property when an accident is your fault
• Cover to replace your car if it’s stolen
• Cover for damage from an attempted theft, such as a smashed window or stolen car radio
• Cover for an arson attack or fire damage to your car

What does third party, fire and theft insurance not cover?

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:

• If your car is stolen because it wasn’t properly secured
• If your car breaks down
• Damage that’s a result of poor maintenance or general wear and tear

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.

What’s the difference between comprehensive, third party, fire and theft and third party cover?

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.

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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.

Is third party, fire and theft insurance cheaper than comprehensive cover?

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.

Can I get a no claims bonus with third party, fire and theft insurance?

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.

How can I save on my third party, fire and theft car insurance?

Keep the following tips in mind to help you save money on your car insurance premiums:

• Compare policies. It’s quick and easy to compare car insurance quotes online, so get quotes from multiple insurers and see which policy comes out on top.
• Don’t assume third party, fire and theft cover will be cheaper. Surprisingly, comprehensive policies can sometimes be less expensive, despite offering higher levels of cover.
• Choose a higher excess. The higher your excess, the cheaper your premium will be. But make sure you can afford to pay the amount you set should the need arise.
• Take advantage of discounts. Many insurers offer discounts to people who insure multiple cars or hold multiple policies with the same provider.
• Drive safely. Building up years of claim-free driving can secure you a decent no claims discount.
• Secure your vehicle. Vehicles that are kept in a locked garage and vehicles that have their own security and anti-theft devices installed are harder for thieves to steal, which makes them cheaper to insure.
• Buy online. Some insurers offer substantial discounts if you purchase cover online, instead of over the phone.

Should I get comprehensive or third party, fire and theft insurance?

Comprehensive vs third party, fire and theft – worked example

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.

Bottom line

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.

Frequently asked questions

• What's the difference between third party only insurance and third party, fire and theft insurance?

  Both policies provide cover for your legal liability when you’re responsible for a car accident that causes injury to someone else and/or damage to their car or property. However, third party, fire and theft insurance also provides cover for loss or damage to your vehicle caused by fire or theft.

• What happens if you only have third party insurance?

  If you only have third party cover, your policy won’t pay out for any damage to or loss of your own car, whether that’s the result of an accident with another car, damage caused by fire or theft.

  Upgrading to third party, fire and theft means you’ll be covered for fire damage or if your car is stolen. To be covered for damage to your car after an accident that was your fault, you’ll need fully comprehensive cover.

• Do I need both comprehensive and third party insurance?

  No, you don’t need 2 separate policies. Third party insurance is the minimum legal requirement to drive a car. If you have a comprehensive policy, it will automatically include all the benefits of a third party or third party, fire and theft policy.

• Will my third party, fire and theft insurance policy cover me when I'm driving other cars?

  It’s unlikely. Cover to drive other cars (on a third party basis) is usually only available with comprehensive car insurance policies, but isn’t always included even with these. Check the policy details if you think you might need to drive someone else’s car.

• Does third party, fire and theft insurance cover damage to my car in an accident?

  No. This type of cover only covers damage to someone else’s vehicle or property in an accident for which you’re responsible.

• How can I find the best third party, fire and theft insurance?

  The only way to find the best third party, fire and theft policy for your needs is to shop around. Compare cover features and quotes from a range of insurers to track down the policy that provides the cover you need at the best possible price.

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Written by

Ceri Stanaway

Writer

Ceri Stanaway is a researcher, writer and editor with more than 15 years’ experience, including a long stint at independent publisher Which?. She’s helped people find the best products and services, and avoid the pitfalls, across topics ranging from broadband to insurance. Outside of work, you can often find her sampling the fares in local cafes. See full bio