A third party only policy offers the most basic cover and the minimum legal requirement for all motorists when it comes to insurance. Many motorists who want to save money on their car insurance will search for third party cover, as 72% of drivers believe this policy is the cheapest.
Third party insurance covers damages to others but not yourself. If there is an accident that is deemed to be your fault then this policy will provide a pay out for the expenses of the other driver’s car repairs and any compensation for their injuries. Any damage to your own vehicle or medical costs for injuries you suffered will not be compensated for with this policy.
As the bare minimum legal requirement, third party cover is often chosen by those who want to save money. Young drivers tend to be quoted the most when it comes to car insurance. They are often considered by insurance companies to hold a higher risk factor than experienced drivers due to the amount of new drivers that have been involved in a collision. Therefore, their insurance premiums increase. As a result of this, new drivers often to opt for third party only as it is considered to be the cheapest policy. However, it can work out to be more expensive if they are involved in a collision that is deemed to be their fault as they will not receive cover for their own expenses.
The value of your car can be another influence on which policy you choose. Those who own cheap or old cars tend to pick a third party only policy too. If the cost of an expensive insurance policy out-weighs the cost of repairing the car or even replacing it, then they aren’t going to be too concerned with a car insurance policy that protects their car. Therefore, they too will take out a third party only cover as a cheaper option.
However, contrary to popular belief, third party only isn’t always the cheapest policy. Due to the number of inexperienced drivers that are taking this basic policy out, there is an increase in the amount of claims being made. Consequently, the premiums of third party policies rise to cover these costs, and in effect can make it a more expensive option to go for. That is why we always advise motorists to shop around for the best deal before they choose their policy.
As an alternative to third party only, there are other insurance policies that provide extra cover yet can sometimes be cheaper to buy. These polices are third party, fire and theft, and comprehensive cover.
If a bit of extra cover is desired, but comprehensive cover is out of your budget range, third party, fire and theft is another option. This insurance policy offers all the cover that third party only provides with a few additional details. It will also provide cover for non-accident damages, for example, accidental fire damage, theft of your vehicle, and any damage sustained through the attempt of a theft, such as a broken door lock. This cover is ideal if you believe yourself to be a good driver, and your risk of causing an accident is low, but you want to protect your car from damages that others may inflict on it.
Comprehensive cover is the cover that provides the most protection, hence its secondary name ‘fully comp’. This insurance policy provides all the cover that the previous policies offer, but also protects your own expenses. If there is an accident, even if it is believed to be your fault, a comprehensive policy will pay-out for the repairs of your car and any compensation required due to the injuries you have suffered.
Comprehensive cover may sound like it is the most expensive car insurance policy, however, as previously mentioned, this isn’t always the case. If you are trying to save money it is often worthwhile comparing how much all insurance policies will cost before you make a decision.