Third party fire and theft car insurance is one of the most popular types of car insurance policies. Unlike third party car insurance which only gives you coverage for any damage or harm that you cause to another person while driving, third party fire and theft extends your insurance coverage to another level. So, what are the benefits of taking out this kind of insurance policy rather than plain third party car insurance?

What does a third party fire and theft car insurance policy offer?

As already mentioned, a plain third party car insurance policy will only give you insurance coverage if you injure or damage somebody else or someone's property as a car driver. If you get hurt in an accident or if your car is damaged, then the insurer won’t pay out on a claim. You will have to take responsibility for any costs that relate to you or your vehicle, although the insurer will deal with a claim made because somebody else (or someone's property) got injured in an accident that was your fault.

If you add fire and theft to a third party insurance policy, then you will get some additional insurance coverage. So, your insurer will cover you if:

• Your car is stolen or damaged in the process of being stolen.
  
  
• Your car suffers fire damage (i.e. if a vandal sets it alight).

You will generally find that a third party fire and theft car insurance policy will give you coverage against legal costs as well. But, as with any kind of insurance policy, do read the terms and conditions through carefully before making an application. Most third party fire and theft car insurance policies will have some exclusions attached to them. So, if something happens that counts as an exclusion, then this kind of third party fire and theft car insurance may not pay out on your claim. Therefore, it’s important to make sure that the exclusions are not important to you and to know what they are in advance!                             

Who should look at third party fire and theft car insurance?

Legally, third party car insurance is the minimum insurance that a car driver can take out. Many opt to take out further coverage via a third party fire and theft car insurance policy to cover themselves for the common problems of car theft and arson.

Given that a third party fire and theft car insurance policy will not help you out if your vehicle (or you) gets damaged, this kind of policy tends to be taken out by car owners whose cars are not of a particularly high value, as cars that aren’t worth much may not actually be worth the cost of repair or the financial benefits may be minimal when compared to the costs of taking out fully comprehensive insurance. So, in this instance, a third party fire and theft car insurance or third party car insurance may suit you better.

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