Third party car insurance provides you with the minimum level of cover required by law. In other words, it's the most basic type of insurance you can get.
Say you're involved in an accident and you're at fault. Third party car insurance will cover the costs for any damage caused to the other driver's car, as well as costs for treatment if the driver sustains any injuries.
But, third party doesn't cover damage to your car, meaning you'll have to foot the repair bill. You'll also have to pay for your own medical treatment, if you need it.
There are two more types of car insurance you can choose from. The first option is a third party, fire & theft policy, which features all the benefits of a third party policy plus protection if your car's damaged by fire or stolen. But, you'll still have to pay out for repairs and personal treatment fees in the event of an accident.
The second option's comprehensive insurance, which provides drivers with the highest level of cover. Unlike third party policies, you're protected against damage to your own car, meaning your insurer will cover repair or replacement costs in the event of an accident. You're also able to claim if you or any of your passengers are injured and need medical attention.
You'd be forgiven for thinking a third party policy would be the cheapest, seeing as it offers the most basic level of cover. But, if you spend some time comparing quotes, you might discover comprehensive insurance is the cheapest option. But, why's that?
Well, third party premiums have seen a hike in recent years, as a lot of drivers considered high risk (such as younger drivers or drivers with little experience) opt for these types of policies in order to keep costs low. As these drivers are more likely to be involved in a crash and therefore make a claim, insurers offset some of the risk by raising premiums.
The most important thing to remember if you take out third party insurance is you'll have to cover all personal costs if you're involved in an accident. Do you have enough money in the bank to repair or replace your car if it was written off? If your car's cheap, or you're confident you'd be able to carry out most repairs yourself, then third party cover could be a good option for you.
Third party insurance can be a false economy; even if you find it's the most affordable option when comparing quotes, remember you're more exposed to risk and might have to dig deep into your savings in the event of an accident. For the sake of a few extra pounds, it could be worth taking out a higher level of cover to give you greater peace of mind.
Hastings Direct policies give customers the level of cover they need at a price that won't break the bank. All policies come with a range of benefits as standard, plus a number of optional extras to allow drivers to tailor their insurance to match their needs.
If you've weighed up your options and decided third party car insurance is right for you, get an online quote today.