The Independent’s journalism is supported by our readers. When you purchase through links on our site, we may earn commission. Why trust us?
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.
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.
A third party, fire and theft insurance policy won’t cover the following:
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 next steps will depend on who was 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 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.
There are three levels of car insurance you can buy:
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).
There are several reasons why you might choose third party, fire and theft insurance, including:
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.
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:
This suggests that for the typical driver, comprehensive cover is likely to be the cheapest.
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.
