Third party car insurance will cover your liability to others only, there is no cover for damage to yourself or your vehicle. Third party only car insurance protects you against any claims made against you or the person driving your car by someone else. By law, as far as the Road Traffic Act(s) are concerned, you need to have a minimum level of car insurance, and third party only cover or more gives you more protection than that required by law.
In order to calculate the premiums for this type of insurance, insurers will use a few factors. The first and perhaps most important are personal details. The driver’s age, claims, convictions and driving experience, along with the driver’s employment status or occupation are noted. The type of car is also important. Is it a sports car or a family saloon. They will also want to know how the car is garaged, and how often the car is used and for what (i.e. business and pleasure).
You should also find that should you have third party only insurance you will be covered to drive other cars on a third party basis. Look carefully at the terms and conditions of your policy for this reason. The policy will tell you whether you can drive another car, and whether someone else can drive your car.
Should it be proved than an accident was caused by you, your insurer will pay for the money that you owe by law to any injured victims or even those killed in the accident. Should you have damaged property, that is covered as well. Any legal costs are covered, and paid to the solicitors of the victims as well as the legal costs that your own insurer incurs representing you.
There’s more. Having third party only insurance means that should you be a passenger in a car, driven by another named driver, and there is an accident, your driver is protected, not you. You can even claim compensation from the person driving your car should their negligent driving cause you injury. The policy indemnifies the driver, so you can end up with the money. What the third party policy doesn’t cover is the damage to your car whoever is driving it.
Interestingly, however, should a thief steal your car and then cause an accident whilst driving it, your third party policy will protect you against claims for injuries or damage. Even though the thief was to blame, the law requires people injured in accidents to be compensated. It’s complicated but it is mainly because a thief is unlikely to have the money to pay compensation.
Your policy should also pay for an expert solicitor to help you in third party claims, but will not pay your fines.