Third Party, Fire and Theft Insurance
The bare minimum level of car insurance one can buy is a basic third party cover. This insures one against damage to any third party or their property, so if he/she hit another car, his/her policy will pay out to cover their repairs and medical expenses.
The next level up is a third party, fire and theft cover. This gives the individual all of the cover associated with basic third party insurance but also includes cover against fire damage or theft to his/her own vehicle.
Also read: What Does Theft Insurance Cover?
The need for a third party, fire and theft cover
A third party, fire, and theft (TPFT) cover is the most basic level of insurance policy one can purchase that will insure him/her against damage to his/her own vehicle.
This is helpful if the individual wants that little bit of extra cover that plain third party insurances are lacking, but don’t feel the need to fork out for a fully comprehensive policy.
Fully all-inclusive insurance plans give more or less total coverage (with specifics varying from provider to provider) including TPFT, as well as any other damage caused to the victim’s car – covering costs for repairs, etc.
TPFT (Third Party, Fire, and Theft) becomes a particularly sensible option if one is driving a car that is either relatively cheap or relatively straightforward to repair.
If he/she feels confident in his/her ability to afford and install the correct parts, and to undertake general repairs on his/her car, then it is worth saving the extra money and going for a TPFT policy, only covering his/her vehicle against the things that he/she is unable to fix (i.e. theft or fire damage).
Having said this, there are things like flood damage against which he/she would not be covered, so it is always worth thinking these things through.
While this kind of cover is generally relatively cheap in actual terms, one may find that by opting for a higher level of cover (say, fully comprehensive) he/she will actually get more for his/her money.
This is because drivers who choose TPFT, and even basic third-party policies, are statistically more likely to make claims.
This leads insurers to knock up their prices for these kinds of policies, and one may well find that by paying slightly more, he/she can get a more comprehensive policy at much better value.
Third-party only insurance coverage
Third-party only insurance (TPO) offers an individual the legal minimum level of car insurance cover and is the most basic you’re able to get.
This kind of policy helps protect other people, vehicles, and property in the event of an accident that was deemed to be the individual’s fault.
In short, the third-party only cover is the best way to ensure that, if someone suffers a road accident that isn’t their fault, their costs can be recuperated.
Third-party, fire and theft insurance coverage
This cover for fire damage applies to accidental fires as well as arson – though one will need a crime reference number to claim for the latter.
Many people often opt for TPO or TPFT policies because they consider them to be cheaper than the comprehensive cover.
This isn’t always true. In fact, one may find some cases where comprehensive insurance works out to be as cheap as TPFT.
In any case, it’s worth looking at the different levels of protection when comparing policies so that one will not be missing out for the sake of a few pounds or dollars.