If you’re looking for motor vehicle insurance, you’ll find that most providers offer different types of cover. Third Party Only, Third Party Fire & Theft, and Comprehensive are the three most common ones. It’s crucial to know what sets each type apart so you can select the one suited to your specific needs.

Third Party Only:

Often, Third Party Only insurance is confused with Road Traffic Act Only insurance, which was usually the bare minimum required to meet the requirements of the Road Traffic Act of 1988 but is no longer sold. On the other hand, Third Party Only insurance is more than what the Act requires, providing liability cover to third parties involved in your accident. You can use it to pay for damage or injury to others, their vehicles, or any other property they own. However, it doesn’t protect you, your car, or your property.

Third Party Fire & Theft:

This type of insurance is more common than Third Party Only. It offers the liability cover for third parties of Third Party Only, and, as the name suggests, you also get coverage if your car is stolen or damaged in a fire. However, it won’t cover any injuries to you or damage to your vehicle or property that result from an accident.

Comprehensive:

This type of insurance covers everything that Third Party Fire & Theft does and allows you to make claims for injuries, vehicle damage, or property loss in accidents. Additionally, you might get other perks bundled into this type of cover, depending on your insurance provider. For instance, your insurance might cover getting you a rental vehicle free of charge while your car is being repaired. It also might include things like roadside assistance.

Which Type of Insurance Should You Choose?

If you drive a relatively cheap car that you could replace on your own if written off by the insurance company (totaled), or you think you could do much of the repair work yourself, Third Party Only and Third Party Fire & Theft are both good options. Choosing between these two types of insurance comes down to whether it’s worth it to insure yourself, your car, or your possessions a little more.

Young drivers, who do not have as much money to spend, may find Third Party Only or Third Party Fire & Theft helpful since they tend to be less expensive. However, the rates vary, and sometimes they might be higher than what you would pay for more coverage. These options are also a practical choice for anyone on a tight budget. Another reason you might opt for them is that you want to avoid making claims that could be covered under Comprehensive and would drive up your rates over time.

Comprehensive insurance makes much more sense for those who have expensive vehicles and property they would like to protect. In fact, some insurance companies require this type of cover on specific vehicles. You might prefer it if you like to receive benefits that often come with this type of coverage. Comprehensive is the policy option to choose when you want to make sure that you won’t have to pay much out of pocket in a more extensive range of circumstances. However, it is often a more expensive choice since your company is accepting greater risk by covering you under more situations.

Conclusion

Getting the right cover on your vehicle is a crucial part of car insurance basics. With three main types of vehicle insurance-Third Party Only, Third Party Fire & Theft, and Comprehensive, it’s essential to know the differences between each option and select the one that fits your requirements. It’s always a good idea to evaluate your circumstances regularly to ensure that you have the right coverage and are getting a good deal.