What is third party insurance?
Third party cover is the most basic level of cover you are required to have by law. It covers you against personal injury claims against you in the event of an incident. It also covers third parties against any damage caused by you in the case of an incident.
Any damage to your vehicle as a part of an incident along with your belongings inside will have to be paid for out of your own pocket. Furthermore, any subsequent repairs will also not be covered.
What is not covered by third party insurance?
As the “lowest” level of cover required by law, the list of things not covered in third party insurance is relatively long. Third party cover means you are taking a lot of risk as the level of cover is very basic. It is very important to consider whether your circumstances require this cover, and you are adequately able to cope in the event of an incident.
Third party insurance will not cover you for driving a vehicle other than your own in any circumstance. If you need to drive another person’s car then you will have to be added to their policy or take out a short-term insurance policy to cover the period, you will be using the car.
If you are injured in an incident, then third-party insurance does not cover any injury compensation or lost income or earnings because of an incident.
If your car or any belongings are damaged in a fire, then third party insurance won’t cover any losses. Also, if any belongings are stolen or the vehicle itself is stolen then you won’t be compensated for any loss.
Should you be hit by an uninsured driver then unfortunately third-party cover can present numerous pitfalls in this situation. Firstly, you are likely to lose any accrued no-claims bonus, also damage to your own car and any replacement belongings will not be covered by your insurance.
Accidents can get very expensive with third party cover; they are typically only economical in very specific sets of circumstances. As fully comprehensive insurance is typically cheaper, we strongly recommend you consider decisions of this regard very carefully. Third party cover will not cover any cost of repair or replacement of your vehicle. This applies in the case of accident, fire, vandalism, or theft.
When is Third Party Cover Useful?
There are situations when third party cover and be useful, this is when your car and belongings are worth very little compared to the cost of any potential repair. If you are a younger driver, you may be tempted to consider this option however you might want to consider other policy types as better suited to your needs such as a “Black Box” policy.
Situations when third party cover is the ideal level policy are few and far between, so we recommend that you are supremely confident this is the correct choice for you.
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