Understanding Insurance

Your guide to third party car insurance

What is third party car insurance?

Third party car insurance is the minimum level of cover you can take out for your vehicle. The policy covers you if you injure a third party or damage their property while driving. This includes the passengers in your car and any injuries they may sustain. The basic level of cover does not insure you against damage or theft to your own vehicle.

What other car insurance options are available?

There are three levels of cover available for car insurance which include:

Third party

As explained above, third party car insurance is the minimum level of cover which only insures third parties (including your passengers) in the event of an accident.

Third party, fire and theft

The next level of car insurance is third party fire and theft, which in addition to third party includes cover against your own vehicle for theft, damage as a result of attempted theft and fire.

Comprehensive cover

The highest level of car insurance is comprehensive cover, this covers the damage to your own car on top of third party, fire and theft. This also means that the insured is covered for injury following an accident.

Common policy add-ons

Many insurers offer you the option to add extras to your car insurance policy, so you can create the package most appropriate for you. This differs with each insurer, with some offering extras as standard under a comprehensive policy while others will require you to add it as an optional extra. Common policy add-ons include:

Legal cover

Covers any legal expenses after an accident that was not your fault, allowing you to claim back any losses from the person that caused the accident.

Guaranteed Replacement Car

This will provide you with an alternative vehicle (subject to conditions) while your car is being repaired or has been written off.

Breakdown cover

If you have broken down on the road, breakdown cover will typically cover the cost of roadside repairs and vehicle recovery.

Personal accident cover

Personal accident cover can pay out a cash benefit to help support you and your family, following any serious injuries suffered in the event of an accident. The benefit varies depending on the the injury. 

Note that add-on policies can differ depending on your insurer.

Which car insurance policy should I go for?

It depends on your own personal circumstances as to which level and type of cover you feel you need.

For instance, third party car insurance may be appropriate for your vehicle if it has a low market value or is cheap to repair. However, for a frequent driver with a higher value vehicle this level of cover may not be suitable.

A common question regarding level of cover is whether third party insurance is cheaper than comprehensive. Since third party is the most basic level of cover and offers the fewest benefits, it tends to be less expensive. Again, it depends on your own personal needs and driving habits as to how suitable this type of cover would be for yourself.

One other option, if you only need insurance for a limited amount of time, is temporary car insurance. Short-term insurance typically provides comprehensive cover for the period of time that you decide. One great advantage of short-term car insurance is its flexibility. If you’re a driver between 18 and 75, you can get insured on a car, van or motorhome for as little as an hour or up to a full 30 days.

If you’re interested in temporary car insurance, you can check out our own brand Jaunt for more information: you could sort your cover in minutes and be driving in 15.

Visit our car insurance page for more information about insurance packages available here at Dial Direct.

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