Third Party Car Insurance

Third-party insurance will payout for damages you cause to another vehicle, injuries sustained by a third-party, as well as injuries sustained by your passenger(s). It does not cover you or your vehicle in any way.

The level of cover provided by third-party car insurance is too limited for many drivers, which is why they opt for third-party fire and theft or fully comprehensive car insurance cover. Both of these levels of car insurance provide third-party cover; fire and theft also safeguards your car from damages, while fully comprehensive cover safeguards yourself from injury.

However, while it is limited for some, third-party car insurance can fit the driving habits and budgets of others. Maybe you drive infrequently, so you can’t justify spending more on the fully comprehensive cover if you’re not going to fully benefit from it. Similarly, maybe your car is valued less than the price you’d pay for comprehensive cover, so why insure it?

The driving conditions that you face on the road should also be considered. Perhaps third-party insurance will suffice if you live in the countryside and don’t regularly pass other drivers. Whereas, if you live in a busy city and make a daily commute, you should get fully comprehensive insurance.

The list of what third-party car insurance does not cover is broad. To provide a narrow view of what this policy type doesn’t cover, here’s a list of things you can’t claim for with a third party:

• Personal accident cover
• Damage caused to your car in an accident (unless it wasn’t your fault, in which case, the third-party driver is responsible for covering the repairs).
• Replacement cover if your car is stolen, broken, or affected by fire or flooding.

For a long time, third-party insurance was the cheapest car insurance policy available. The reasons were obvious: it provides the bare minimum level of protection, so logically it should be priced cheaper than a cover that is more comprehensive.

However, the tides are changing, and today you can find more affordable, fully comprehensive insurance cover than you can third-party insurance. The reason for this is that sensible drivers always took out comprehensive insurance, while high-risk drivers took out the third-party cover.

Insurance companies found that they were paying out more frequently to those who took out third-party insurance, despite valid reasons for claims being slimmer. Drivers with third-party cover are therefore more likely to make a claim, which is why insurance providers now charge more for some third-party premiums.

Of course, there are several other reasons why your third-party insurance is expensive, including:

• Your age: Beginner drivers aged 17-25 invariably have to pay more for their insurance, regardless of their level of the cove.
• The car you drive: Insurance providers will thoroughly review the car you drive and offer you a premium that reflects the model and age.
• Your driving history: Not only will your claims history be examined, but also road offences you’ve committed and the number of points you’ve got on your license.
• Your job: Interestingly, although it doesn’t relate directly to the road, the stress level of your job could see you paying higher for insurance.
• Where you live: If you live in the countryside or a small town and have just a small daily commute to make, you can expect your insurance costs to be lowered. However, if you live in the middle of a built-up city and have a lengthy commute to make daily, you can expect your insurance price to be higher.
• Mileage: If you regularly take your car out for cross-country drives, then you’ll likely pay more for insurance than the driver who only uses their car occasionally.