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Car Insurance

Third Party Car Insurance

Third-party car insurance is the most basic level of insurance available in the UK. You cannot purchase less auto insurance than this, for UK law states this is the minimum protection required to drive legally. The intent of the insurance is divulged in its name: It pays to third-parties, not to drivers who cause the accident. It has no other benefits – not for your medical expenses, not for your car and not when no-fault accidents occur. It pays only to other people when you are at fault. Because of the limited benefits, third-party cover is the cheapest auto insurance type you can buy.

Legal Requirements

As mentioned above, the Road Traffic Act of 1988 made driving without insurance illegal. The Act requires at least third-party cover on a driver for the driven vehicle. Video cameras periodically scan intersections for licence plates. Those plate designations are run through a national data base to ensure it has insurance. If the car you borrow, for example, does have insurance, you’re still not safe. What if you are involved in an accident of some sort? You could still get caught driving without your insurance on that vehicle. Not only do you face legal consequences, your insurance rates could sky rocket, and they would not decrease much for a long time.

If you are at fault in an auto accident, and you do not have appropriate cover, you, personally, will be held liable for damages to the other car, other property that may have been damaged or destroyed and medical expenses for every accident-related injury incurred by anyone. For most drivers just the vehicle damage on involved autos would be devastating to their finances, much less cost of medical treatment and additional awards from lawsuits. Make the wise decision: Get proper cover for your car. If you are borrowing a vehicle, get short-term auto insurance. Either option is far cheaper than the alternative.

Third-party cover is the cheapest type of vehicle insurance, but you can lower those rates even more. Driving a whole policy period without an infraction or a claim against that policy, and the insurance company may award you with a no claims bonus for driving safely. The bonus is reduced premiums on your renewal policy. You can qualify for a no claims bonus for as many years as the insurance company offers it. Over time, you can pay up to 70 per cent less, simply by avoiding accidents and obeying traffic laws.

Benefits of Basic Policies

The easy affordability of third-party car insurance is its second benefit. The primary benefit, of course, is that it allows you to drive legally in the UK. Third-party car covers usually are not allowed by lenders if you borrow money to buy the covered car. Most new car insurance policies must be comprehensive cover, for the lender must protect its investment until you pay off the loan. Third-party cover is perfect, though, for many owners of older, low-valued cars who doesn’t mind if it gets a few scratches or dents. Mechanics often get third-party insurance on their cars because they have the expertise to fix them themselves.

As with all policy times, benefit limits can vary from provider to provider. For example, Carrier A may provide up to £100,000 for liability cover. Carrier B might offer £200,000 as its online default cover amount. Of course, the higher-limit policy will cost more than the lower-limit one, so check benefit levels to ensure you compare auto quotes on the same playing field. Make sure all benefit levels are the same to properly evaluate which third-party car insurance is actually the cheapest. As an additional benefit which makes third-party cover attractive is the legal fee cover that is sometimes included in your policy benefit package. Check for its inclusion and its benefit limit.

Disadvantages of Third-Party Insurance

Sacrificed as the cheapest car insurance, third-party auto cover does not offer any benefit protection for your car repairs or your medical expenses. It does not provide benefits to repair or replace personal possessions damaged or destroyed in an accident for which you are responsible. It provides no benefits for no-fault accidents – tree limbs falling or lightning strikes, for example. Every penny of your coverage is aimed outward toward others, and none helps you with your own expenses.

Some insurance companies refuse to issue third-party cover under the belief that it is inadequate protection. Don’t be fooled into purchasing a higher level of cover if third-party protection is all you need. There are plenty of insurance companies who welcome your third-party auto insurance business. Look for those before automatically paying the non-participating insurance companies higher premiums for cover you really don’t want. You might consider either third-party fire and theft or comprehensive auto mobile insurance if you do want more coverage than the legal minimum. Check comparison quotes to see the value differences: Comprehensive may be the most expensive, but it has greater benefit value per pound than either other type of car cover.

If saving money is your highest priority, third-party cover may suit you very nicely. Consider the purpose of your vehicle, how long you want it to last and how much you are willing to invest in repairs if it is in at-fault or no-fault accident. Compare online quotes from several top auto insurance companies with our free, online tools to maximise your savings potential for precisely the auto protection you want.

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