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Third party, fire and theft insurance

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Third party, fire and theft insurance is a step up from third party insurance – the minimum level of cover you need to drive on UK roads legally. But while it might go above and beyond what’s required by the law, third party, fire and theft insurance doesn’t provide as much cover as fully comprehensive car insurance.

Learn more about third party, fire and theft insurance and whether it might be a cost-effective way to insure your car or whether you’ll be better off with comprehensive cover.

What is third party, fire and theft insurance?

Third party, fire and theft insurance gives you a middle ground between third party insurance, the lowest level of cover that you can buy, and comprehensive car insurance, which provides the highest level of cover.

This means that in addition to providing cover for third parties (other people and their vehicles), third party, fire and theft insurance will also cover your car if it’s stolen or damaged in a fire.

It won’t, however, pay out if you’re injured or your car needs repairing after an accident.

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What does third party, fire and theft insurance cover?

A third party, fire and theft insurance policy won’t cover the following:

  • Damage to your car: If there’s an accident and you’re considered to be at fault, you’ll have to pay for repairs yourself. If your car is beyond repair, you’ll have to pay for a new car
  • Your medical costs: Although your policy will cover injuries to your passengers, it won’t cover you
  • Theft if you were negligent: Your policy won’t pay out if you were considered to be careless – for example, you didn’t lock your car or left a window open
  • Some fires: If the fire was the result of a mechanical or electrical failure, your policy won’t pay out
  • Your possessions: You won’t be able to file a claim if your bag or phone was stolen from your car or damaged in a fire

What happens if I’m in an accident and have third party, fire and theft insurance?

If you’re in an accident and only have third party, fire and theft insurance, you might not be able to claim on your insurance. However, you’ll still need to let your insurer know what happened.

This is because you’re obliged to report any accidents, and there’s a strong chance a claim might be made against your car insurance policy.

The insurer will likely ask for the following:

  • The date, time and location of the accident
  • An explanation of what happened
  • The weather conditions and whether your visibility was affected
  • Whether there was any damage to other cars or property 
  • Whether anyone was injured
  • Contact and insurance details for other drivers 
  • Contact details for witnesses who weren’t directly involved
  • Whether the police attended the accident and you have a crime reference number

The next steps will depend on who was at fault.

If you were at fault

If there was any damage to other cars or property (for example, you crashed into a wall), your car insurance policy will cover the cost of repairs or replacements. It will also pay for medical costs or compensation if other people were injured, such as other drivers and passengers. You’ll lose some of your no-claims discount if you have one. 

You won’t be able to claim for any damage to your car and will need to foot the bill for any repairs or a replacement yourself. You also won’t be able to claim for any injuries you suffered.

If you weren’t at fault

If another driver caused the accident, you should be able to make a claim against their insurance if your car was damaged or you were injured and incurred medical costs. However, as you only have third party, fire and theft insurance, your insurer won’t claim for these things on your behalf. Instead, you’ll need to work with the other driver’s insurer yourself or pay for a claims company to do the leg work for you.

As you aren’t making a claim on your car insurance, you won’t lose any of your no-claims discount in this scenario.

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How does third party, fire and theft insurance compare to other types of policies?

There are three levels of car insurance you can buy:

  • Third party
  • Third party, fire and theft
  • Comprehensive

Compare what’s covered by each level of car insurance in the table below:

Cover Third party only Third party, fire and theft Comprehensive
Repairs to your car after an accident X X
Repairs to other cars after an accident
Repairs to others’ property after an accident
Your injuries after an accident X X
Other people’s injuries after an accident
Fire damage X
Theft X
Personal possessions X X

In addition to the basics listed in the table above, comprehensive car insurance may also include other benefits. This varies substantially between policies but can include things such as courtesy cars, windscreen protection and cover for driving other cars.

You may also be able to buy additional benefits alongside third party, fire and theft insurance, such as breakdown cover or motor legal protection (as you can with comprehensive car insurance).

Why should I choose third party, fire and theft car insurance?

There are several reasons why you might choose third party, fire and theft insurance, including:

  • Your car was cheap, and you can afford to replace it
  • Repairs are likely to be affordable
  • Spare parts are cheap and easy to get
  • You can carry out repairs yourself
  • You only drive your car occasionally
  • You’ve struggled to get fully comprehensive car insurance (for example, if you have any criminal or driving convictions)
  • You live in an area with a higher crime rate so feel third-party only won’t be sufficient

If these criteria don’t apply to you – for example, you’d struggle to afford to fix or replace your car after an accident – then it wouldn’t make any sense to choose third party, fire and theft insurance. 

It also may not be a sensible option if you’re a young driver with limited experience and a greater chance of being involved in an accident.

Whatever your circumstances, it’s essential to think about cost as well as the level of cover you’re getting. 

You should only consider third-party policies if the level of cover is right for you and it’s noticeably cheaper than fully comprehensive car insurance.

For many drivers, comprehensive car insurance may offer better value for money than both third party only insurance and third party, fire and theft insurance.

What is the cheapest level of car insurance?

It’s natural to assume that third party only and third party, fire and theft insurance will be cheaper than fully comprehensive car insurance because they offer a lower level of cover.

However, that’s often not the case. This is because third-party options typically attract higher-risk drivers who claim more often, pushing the price of these policies up.

According to Moneysupermarket.com, the annual average costs of the different cover levels are:

  • Third party only insurance: £620
  • Third party, fire and theft insurance: £753
  • Comprehensive car insurance: £560

This suggests that for the typical driver, comprehensive cover is likely to be the cheapest.

Third party, fire and theft insurance FAQs

If your car is involved in an accident and can’t be driven, you might need a recovery service to collect your car. This isn’t typically included in a third party, fire and theft insurance policy. However, if the accident wasn’t your fault, you should eventually be able to reclaim the cost through the at-fault driver’s insurance.

This is any damage that you cause to somebody else’s vehicle or property in an accident that was your fault. It could include damage to the body of another vehicle or a wall.

The costs of these scenarios should be covered by third party only and third party, fire and theft policies.

Yes, you can generally build up a no-claims discount on all car insurance policies, whether they’re third party or fully comprehensive.

How they operate might vary, though, so it’s often a good idea to check the terms with your insurance company.

You should be covered to drive your car on the continent with third party, fire and theft insurance. However, your cover might be limited (for example, restricted to a certain number of days) so it’s important to check before you cross the channel. Cover for driving in Europe will also typically be on a third-party-only basis, so it’s essential to note your car may not be covered for fire and theft while you’re away.

No, the legal minimum level of cover required to drive on UK roads legally is third party only. This provides the same level of cover if you injure someone in an accident or damage another vehicle or property. It just won’t pay out if your car is stolen or damaged in a fire.

amy

Amy Reeves

Editor

Amy is a seasoned writer and editor with a special interest in home design, sustainable technology and green building methods.

She has interviewed hundreds of self-builders, extenders and renovators about their journeys towards individual, well-considered homes, as well as architects and industry experts during her five years working as Assistant Editor at Homebuilding & Renovating, part of Future plc.