Table of Contents
- What is third party insurance?
- What does third party insurance cover?
- What happens if I have third party insurance and am involved in an accident?
- Is third party car insurance right for you?
- Is third party insurance cheaper than comprehensive insurance?
- How much is third party insurance?
- Third Party Insurance FAQs
Third party insurance is car insurance at its most basic. It is the minimum level of car insurance you can buy and the minimum cover required by law to drive legally on UK roads.
Read on to learn more about third party car insurance, including what it does and doesn’t cover, how much it costs, and whether it may be right for you.
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What is third party insurance?
With third party car insurance, your insurer will be responsible for covering the cost of damage to anyone else’s vehicle or property if an accident is your fault (less any excess you’ve agreed to pay). It can also provide financial protection if there are medical bills or compensation related to injuries sustained by ‘third parties’, including anyone travelling with you as a passenger.
Importantly, with third party insurance, your insurer won’t pay out to cover the cost of any damage to your car or your own medical bills. These will be your responsibility. Third party only cover will also mean you’re not protected if your car is stolen or damaged or lost to fire.
What does third party insurance cover?
Generally, third party car insurance:
| Will cover | Won’t cover |
| Damage to someone else’s vehicle | Damage to your vehicle in an accident |
| Damage to someone else’s property | Fire damage to your vehicle |
| Injury to other drivers and any passengers | The theft or vandalism of your vehicle |
| Injury to your passengers | Replacing your vehicle |
| Injury to other third parties | Any injury to yourself |
| Injury to animals | You driving someone else’s car |
What happens if I have third party insurance and am involved in an accident?
If you’re at fault for the accident…
…your insurer should cover the cost of the damage and injury caused to other parties, including vehicle repairs and medical expenses. Depending on your policy and the nature of the accident, your no-claims discount may be affected going forward, and your future premiums may be higher.
If you’re not at fault for the accident…
…the other driver’s insurance company should cover the cost of any damage to your car, and pay towards your medical bills. Your insurer probably won’t need to be involved in the claim, as they pay nothing out, and your no-claims discount should remain intact.
Is third party car insurance right for you?
Third party insurance could be worth considering if the value of your car is relatively low, and the potential cost of repairs may be higher than what it’s worth. In particular, consider if the excess you’d have to pay towards a claim may be better used buying a different car.
Third party only cover may also be worth exploring if you’re finding comprehensive cover is too expensive. This may be the case if you’re a younger or less experienced driver, don’t have a no-claims discount, or live somewhere where the cost of insurance is high. However, don’t automatically assume third party cover will be cheaper, as often it isn’t.
It’s also always important to think about what third party insurance doesn’t cover, and make sure that you’re comfortable only being covered for what it does.
Can you drive someone else’s car with third party insurance?
You won’t be covered to drive another person’s car if you have third party only cover.
Other cover options
If third party only insurance doesn’t provide the cover you need, you may want to consider:
Third party, fire and theft
This provides the same cover as third party insurance, but with protection also included in case your car is stolen or damaged by fire. It still doesn’t cover you for damage to your own car as a result of an accident, or any injuries you may suffer.
Comprehensive cover
‘Fully comp’ is the highest level of cover available. As well as covering the cost of damage to someone else’s car or property, and their medical costs, it also covers the damage and loss of your car due to an accident, theft, vandalism, or fire, and your own injuries.
» MORE: Fully comprehensive car insurance explained
Can you upgrade third party insurance to comprehensive?
You can change from third party insurance to comprehensive insurance when your existing policy comes to an end and you buy a new one. Alternatively, you may be able to cancel your existing policy early and replace it with different cover, though charges may apply.
Is third party insurance cheaper than comprehensive insurance?
It is often assumed that third party insurance will be cheaper than comprehensive insurance, because it provides less protection. However, that isn’t always the case. If you’re considering third party cover, it’s worth checking the cost of a comprehensive policy, just in case it’s cheaper, or only a little more expensive, and you can get greater protection.
» MORE: Compare car insurance
How much is third party insurance?
How much you’ll pay for third party insurance depends very much on your car and your situation. Some of the major factors include:
You
Your age, job, address, marital status and health can all affect the premium you pay. It’s all to do with the likelihood of you needing to make a claim. As a result, you may pay more if you’re less experienced as a driver, or maybe older, so in your 70s or 80s, or have a certain medical condition. Premiums can also be higher if you live somewhere where there’s a greater risk of accidents or your car being stolen, or you have a stressful job, or drive a lot due to work.
Your driving record
How you use your car and your record as a driver will influence the cost of your insurance. So premiums may be higher if you spend a lot of time on the road, or have recent driving offences. The no-claims discount you can build up if you don’t make any claims can significantly reduce the cost of car insurance too.
Your car
How much your car is worth, and what it would cost to repair, are big deciding factors in the price of insurance cover. The make, model and age of your vehicle are important, as are any modifications you choose to make. But added security features could bring the cost down.
Your cover choices
Your insurance choices can also affect cost. When taking out cover, you set the voluntary excess – the more you’re willing to pay towards a claim yourself, the lower your premium will often be. You’ll also have the chance to add optional cover, perhaps to protect your no-claims discount or breakdown cover, which may be useful but will add to the price.
Crucially, the cost can vary widely between insurers. That’s why you should always shop around and compare car insurance whenever you take out a new policy.
» MORE: How to get cheap car insurance
Third Party Insurance FAQs
Third party insurance is so-called because it covers the third parties, or others, involved in a car accident but not the policyholder.
The main difference is that third party car insurance only provides cover for damage and injury to others and their vehicle and property, whereas comprehensive insurance covers your own car and injuries, as well as those of others.
Third party car insurance can often be more expensive than other types of cover because data shows that drivers who take out third party cover are more likely to claim those with other policies.
Third party only insurance is the minimum level of cover required to legally drive a car in the UK. Whether it’s enough for you, depends on the degree of protection you want. Fully comprehensive insurance offers the most complete protection.
Yes, third party car insurance covers injuries to passengers that are in your car with you, as well as passengers in any other vehicle.
Yes, it is possible to buy only third party insurance. The other popular car insurance cover options in the UK are comprehensive and third party, fire and theft, both of which offer a higher level of protection than standalone third party cover.
No-claims discount can be built on all types of car insurance, including third party only cover, if you don’t make a claim.
Yes, third party car insurance would pay out to cover injuries to animals.
No, third party only car insurance won’t usually pay out if your car is stolen. If you want protection against theft, you’ll need either comprehensive cover, or third party, fore and theft insurance.
Yes, you may be offered the chance to add optional extras to your policy, though you’ll need to pay for each. Depending on the insurer, these may include motor legal protection, personal accident cover, no-claims discount protection, and windscreen cover.
Yes, you can get third party only insurance for classic cars.
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