You will no doubt be aware that there are three levels of car insurance available here in the UK. They are – third party, fully comprehensive and third party fire and theft.
Let’s have a look at the later one in a little more detail and then explore why someone would want to arrange such cover.
If this accident was your fault, you would not be covered for the damage caused to your car under third party, fire and theft car insurance
Third party fire and theft car insurance will provide cover should your car be involved in an accident but it will only cover damage to other vehicles – not your own car. It will also provide insurance should someone else other than yourself be injured or killed in the event of someone suing you for damages. It will also cover you for damage caused to other property such as buildings.
The only occasions when your own car would be covered would be if it were damaged as a result of being due to a fire or should it be stolen and never found again or damaged during the theft.
So, why would someone want to arrange this level of cover? Well, cost is a potential significant factor and the main one for those people on a budget. Although not always the case, the premium for this level of cover is somewhere in between what it costs to arrange the other two types of cover. However, it may be worth checking this is the case when you are looking for cheap car insurance as, sometimes, you may find that fully comprehensive car insurance, that is usually the most expensive, may not be.
Another reason why someone may choose this level of cover is because they feel that they are a good driver and are unlikely to be the cause of an accident. Therefore, they may not be all that bothered about insuring their own car for damage caused to it as, if it were the other driver’s fault, a claim would be made on the other driver’s car insurance. However, they would prefer peace of mind in the event of theft or fire. Dare we say, that is perhaps a bit of a chance to take, as even the best driver in the world could make a mistake and cause an accident and damage their own car.
Hopefully, the above has been of assistance.
