If you're new to driving in the UK, you’ve probably come across the term third party car insurance. It’s the minimum level of cover required by law – but what does third party insurance actually cover? And is it really the cheapest option?
This guide explains what third party insurance means, how it compares to other types of car insurance, and whether it’s the right choice for you.
What does third party insurance mean?
Third party insurance (sometimes called third party only or 3rd party insurance) is the most basic level of cover legally allowed in the UK. It's designed to protect other people, not you.
If you cause an accident, it will cover the cost of any damage to the other person’s vehicle or property, or the cost of any medical treatment they receive.
It will not cover your own vehicle, property or injuries to yourself. That means if your car needs repairs or replacing, you’ll have to pay for it yourself.
What is covered under third party insurance?
To summarise, here’s what third party insurance does and doesn’t cover:
Third party insurance covers:
- Injuries to other drivers, passengers or pedestrians
- Damage to other people’s vehicles
- Damage to third-party property
Third party insurance doesn’t cover:
- Damage to your own car
- Injury to yourself
- Fire or theft (unless you choose third party, fire and theft)
What is third party, fire and theft?
Third party, fire and theft (TPFT) provides cover for any damage or injuries to other people, plus cover if your car is stolen, or damaged by fire or an attempted theft.
However, it does not cover damage to your own car if you cause an accident. It is a middle level of cover between third party only and fully comprehensive.
It covers you if:
- Your car is damaged by fire, whether accidental or deliberate
- Someone steals your car
- Someone tries to steal your car and causes damage, such as smashing a window
If you are in an accident that you caused, it does not cover:
- Damage to your vehicle
- Injuries to you or your passengers
- Damage caused by fire that is the result of the accident
What’s the difference between third party and fully comprehensive insurance?
The key difference is that third party insurance covers damage or injuries you cause to others, whereas fully comprehensive insurance also covers you and your car.
So fully comprehensive covers everything third party insurance covers, plus:
- Damage to your own car (even if you caused the accident)
- Injury to yourself or your passengers
- Additional cover depending on the provider (like windscreen repairs or driving other cars)
Find out more about fully comprehensive insurance.
Is third party insurance cheaper?
Not always. Many people assume that third party insurance is the cheapest option. But in the UK, that’s not necessarily true.
Insurance companies calculate prices based on how likely they think you are to make a claim. Data shows that drivers who choose third party only cover are more likely to make a claim – so these policies often come with higher premiums than you’d expect.
In fact, fully comprehensive insurance can sometimes be cheaper than third party cover – and it comes with much more protection. So it’s worth comparing both before you buy.
Is third party insurance right for me?
The right car insurance policy for you will depend on the cover level you’re looking for. If you want the basic level of cover, then third party insurance might be a good option.
However, if you cause an accident, you’ll have to pay for your own repairs, which can cost thousands. And as third party policies can be more expensive than expected, many drivers find that fully comprehensive offers better value overall.
Find out more about why car insurance is expensive in the UK
Looking for cheap car insurance?
At Marshmallow, all our policies are fully comprehensive – even our most affordable ones.
We built our insurance for people who are new to the UK, and we use your driving history from your home country to give you a fairer price. UK newcomers save an average of £220* on car insurance with Marshmallow.
Sound good? Get a quote today and see how much you could save
*Based on internal data for insurance policies sold via Price Comparison Websites in 2024 for UK newcomers living in the UK less than 4 years. The average difference between Marshmallow’s price and the second cheapest price was £220.
