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:
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.
Fully comprehensive cover
The highest level of car insurance is fully comprehensive cover, this covers the damage to your own car on top of third party, fire and theft.
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:
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.
If you have broken down on the road, breakdown cover will typically cover the cost of roadside repairs and vehicle recovery.
Personal accident cover
Covers any serious injuries you or your partner suffer while in the vehicle.
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 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 fully comprehensive. Since third party is the most basic level as cover, it often tends to be less expensive, although this doesn’t always mean it’s better value or the most appropriate for you.
Visit our car insurance page for more information about insurance packages available here at Budget Insurance.