Compare third-party, fire and theft car insurance

What is third-party, fire and theft insurance?

Valid third-party car insurance is the minimum level of cover legally required to drive on UK roads. Third-party, fire and theft insurance provides the same basic cover as third-party insurance, but it also covers your vehicle if it’s damaged or lost as the result of theft. 

But while third-party, fire and theft cover gives you less coverage than comprehensive insurance, it’s not always cheaper.

What are the different levels of car insurance?

There are three levels of car insurance that entitle motorists to drive on UK roads. These are:

There are variants within each, depending on what specific policies offer as standard and what you pay extra for. 

What is third-party insurance?

Third-party insurance is the most basic kind of policy. It protects other people if you injure them or their property or vehicle in a road traffic accident. Cover extends to passengers in your own car.

Third-party insurance will not cover if you are injured or damage your own vehicle or property. Incidentally, the term ‘third party’ just means someone else. You and your insurers are the first and second parties.

Third-party insurance won’t cover your losses, but if someone causes a road traffic accident resulting in injury to you or damage to your car or property, you can claim on their insurance to cover your losses.

What is third-party, fire and theft insurance?

Third-party, fire and theft (TPFT) is the next level up from straightforward third-party insurance. In addition to providing third-party cover, it will pay out if your car is damaged or lost as a result of either fire or theft.

What is comprehensive car insurance?

As the name suggests, comprehensive car insurance (also known as fully comprehensive or fully comp) covers most conventional claims. It includes everything you’d get with TPFT, and also covers damage to your car in an accident – even if you caused it.

In addition, many comprehensive policies also cover personal accident and injury and include protection for your personal belongings. They also often include windscreen cover and uninsured driver cover, which applies if your car is hit by someone without insurance, or who drives off without leaving their details.

Can I get cheap third-party, fire and theft insurance?

You might think that TPFT car insurance would be one of the least expensive kinds of policy on the market, but that isn’t necessarily the case.

Data collected by insurers shows that the typical third-party customer tends to be an inexperienced and young driver who is raring to get on the road and pays little attention to their policy. They just opt for the most basic option thinking that it’ll be cheap. This is also something that could be said of TPFT customers.

As drivers under 25 typically make more claims than older drivers, some insurers reflect this by increasing premiums for people who choose third-party or third-party, fire and theft policies. Conversely, experienced drivers who choose comprehensive policies are seen as a safer bet, resulting in reduced premiums.

Why buy third-party, fire and theft insurance?

Third-party, fire and theft insurance may not always be the cheapest option, but that doesn’t mean it’s always more expensive than the other options. If you’re on a tight budget and willing to risk starting from scratch following a prang, it could offer significant savings and it provides more peace of mind than basic third-party insurance.

TPFT cover could also be a better option than remaining on someone else’s insurance as a named driver, particularly if you’re keen to build up your no-claims discount and enjoy greater savings when you buy your next car.

What if I’m taking a break from driving?

Third-party, fire and theft insurance – or whatever works out to be the cheapest insurance option – is sometimes selected when someone mothballs their car, perhaps if they spend a large chunk of the year away, either at university or on an extended holiday.

A pay-per-mile insurance policy might work better in this instance. These charge a flat fee for the basic risks while your car is parked up, then add on additional costs for each mile you drive.

If you’re parked on your own property, rather than the road, you may also be better off applying for a Statutory Off Road Notification (SORN), a legal requirement even if your car’s not being used. 

A SORN means you don’t have to pay any insurance at all but leaves you with no protection if your car is stolen or catches fire.

How do I reduce the cost of my car insurance?

Whatever your budget or car insurance requirements, there’s no sense in paying more than you need to. You may be able to chip a little off the bottom line with some careful consideration when getting quotes or buying a car.

Don’t get modifications

Adding alloy wheels or a body kit can give your car a whole new look and feel. However, any enhancement that makes it stand out also makes it more attractive to thieves, and so will increase your insurance premium. Modifications that increase your car’s power output can also affect the cost of insurance.

Watch your mileage

Insurers take your mileage into consideration. If you can limit the time you spend behind the wheel, you’ll pay less. The more you drive, the greater the risk of being involved in an accident.

Consider multi-car insurance

If your household has a bunch of cars, it may be worthwhile getting a multi-car insurance policy to cover them all, then split the bill between all owners. In this way you may be able to afford a higher level of cover than TPFT for little more (or even a bit less) of an outlay.

Pay annually rather than monthly 

It is tempting to pay for car insurance on a monthly rather than annual basis but doing so involves paying a significant interest charge on top of your already hefty premium. If possible, budget for cover and pay the lot in one lump sum.

Use a comparison site

Don’t just call a few big-name insurers for quotes, and never auto-renew without first comparing offers, as existing customers rarely get a good deal from their policy provider.

Instead use a comparison site to find the cheapest policy of the standard you require. If you’re focused on getting a third-party policy, take a moment to edit your search to see if it is cheaper to buy TPFT or comprehensive, which may offer you more for less.