Car Insurance Policy Types

Car Insurance

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Broadly speaking, there are three types of car insurance available in the UK. These are:

• Third party only
• Third party, fire and theft
• Fully comprehensive

Third party fire and theft car insurance

Third party fire and theft car insurance, also known as TPFT insurance, pays for any damage to third parties including their passengers and their property, just as a third party only policy would.

However, the advantage of third party fire and theft is that it will also pay out for your own car - but only in the event that it is stolen or damaged by theft or fire.

According to Home Office statistics, vehicle crime makes up 19% of all recorded crime in the UK and in the period from 2006-2007 there were 1.7 million cars stolen. Protecting your car against this risk offers reassurance and helps avoid the expense of funding a replacement.

Third party fire and theft is seen by many as a 'happy medium' between third party only and comprehensive cover in that it is much cheaper than comprehensive cover but more extensive than third party only insurance. But if you're considering buying TPFT insurance bear in mind that if the car is damaged in an accident it will still be down to you to fund repairs or a replacement.

Generally, TPFT insurance is used by motorists who have cheap cars, which, if insured with a comprehensive policy, would be immediately written-off by an insurer after an accident rather than be repaired. It is also a good option for those with low value cars because insurers often have little to pay once the excess is taken into account.

Before opting for third party fire and theft car insurance, drivers should think about balancing the risk of funding a replacement car against the value of the saving by comparison to comprehensive cover. Weigh this up alongside your own driving record and the likelihood of making a claim before deciding if TPFT insurance is right for you.