A third party, fire and theft insurance (TPFT) is a mid-range cover that you can take out from an insurance provider. It offers a better cover than third-party-only insurance, but not as much as comprehensive car insurance. If you are involved in an incident where you are at fault, it covers damage to a third party. It also covers your car if it gets stolen or damaged by fire. You need to know about a third party, fire and theft car insurance cover.
What is Third Party Only (TPO) Insurance?
Before we talk about third party, fire and theft insurance, we have to look at the basic car insurance you can get. Third-party only (TPO) insurance or third-party insurance covers the damage you cause to another person’s vehicle, personal injury to a third party or passenger, but not the damage to your vehicle.
Suppose you drive into a car at a turning point and cause an accident that injures the driver and passenger. Your TPO insurance should pay for the damage to the other car and the medical expenses incurred by the driver and the passenger. However, your TPO insurance will not cover the damage to your car.
Third-party insurance should give you the legal minimum coverage for a financed car. If you cause an accident, your insurance provider should pay for any third-party claim. However, your insurance cover should be paid for and up-to-date. You could pay for it in one lump sum or in monthly installments, whichever is more affordable based on your financial condition.
‘Third-party’ is based on a term used in insurance law. As the driver buying an insurance policy, you are the first party. The insurance provider, the company that takes on the risk, is the second party. The third party is the driver/vehicle you hope to avoid hitting. If you cause an accident, your insurance company shares part of the expenses.
A third-party insurance policy covers any damage you cause to another person, including personal injury claims. The person could be the driver or one of the passengers. Your policy should cover an accident that involves a bystander, a cyclist, someone’s wall, or a lamp post.
While this minimal coverage policy may seem to cover a wide range of circumstances, it will not provide fire or theft insurance cover. If you want this cover, you must upgrade to a third-party fire and theft cover.
What is a Third Party Fire and Theft Cover?
Third-Party Fire and Theft (TPFT) cover is an upgraded version of the TPO cover. The policy covers these three specific cases:
- Damage to another person’s vehicle
- An accidental fire to your vehicle
- Theft or attempted theft of your vehicle
Your third-party fire and theft insurance policy should cover its replacement cost if your car gets ravaged by fire. If the fire is not accidental but caused by suspected arson, you should support your claim with a crime reference letter from police authorities. If your car gets stolen, the TPFT policy should also provide cover.
TPFT also provides cover for third-party claims. You are covered if your driving causes damage to other vehicles, the public environment, or private property. You are also covered for personal injury claims, including medical expenses incurred by the other driver and one or more of their passengers. However, your insurance policy does not cover any damage to your vehicle due to your driving.
TPFT is only a mid-level type of insurance cover. Although it provides fire, theft, and third-party cover, it does not include damage to your vehicle. You have to buy a fully comprehensive car insurance policy if you want full coverage.
What is included?
- Damage to another’s property
- Accidents caused by other drivers
- Emergency repairs
What is not included?
- The damage you cause to your car
- Damage caused by severe weather, including storms, hail, or flood
- Injuries caused by others to you
What is the Difference Between a Third Party, Fire and Theft Insurance, and a Comprehensive Insurance?
TPFT covers damage to a third party (including their property) resulting from an incident where you are at fault. It also covers damage to or loss of your vehicle due to fire or theft. A comprehensive insurance policy covers all those mentioned in TPFT, plus the cost of damage to your vehicle due to the incident.
Based on the level of protection, the comprehensive is the clear winner. Nevertheless, while the comprehensive cover is the most logical option between the two, it is not always the most practical choice for vehicle owners.
The comprehensive cover is the best policy if you are an experienced driver and have a newer or more valuable vehicle. It covers the cost of damage to your car. In this scenario, it makes sense to get full coverage.
If you are new to driving, use an older vehicle, or have low yearly mileage, it is logical to get a mid-range cover. In this case, TPFT makes more sense because it is cheaper to buy a replacement vehicle than to buy a high-range cover. It may even be beneficial to get third-party car insurance.
Which is the cheaper car insurance? IN MOST CASES, the TPFT cover is cheaper than the comprehensive cover, but that is not always true. In certain situations, the comprehensive cover may be cheaper based on your driver history and the value of your car. Therefore, getting a quote for a fully comprehensive cover is helpful even if you feel like TPFT matches your needs.
If you want to reduce the cost of your insurance policy, be sure not to overvalue your vehicle. If your vehicle needs to be replaced due to theft or fire damage, your insurance company will only give you what the assessor deems it worth. If you give it a higher value, you will pay higher premiums but claim a lower value for your vehicle.
An insurance company aims to provide you with the best car insurance available. However, they should also be able to give you a cover that suits your situation and needs. Therefore, you have to shop around and get quotes from as many insurance companies as possible.
How to Get a Third Party, Fire and Theft Insurance Quote
If you decide to get TPFT cover, many insurance companies choose. The best way to do it is to use a comparison website. It would be best if you searched for insurance providers near your area. Before you get car insurance quotes, you should have the following information ready:
- Car details (model, fuel type, engine size)
- Driving history (including convictions and claims)
The premium of most car insurance policies is calculated according to the information above. You are free to choose which policy is best for you based on the price and the coverage.
Remember that fully comprehensive insurance is not always the right one for you and your vehicle. Spend time to read the policy document and become fully aware of what cover you need. It would also be best to read more car insurance articles to help you make an educated decision.
Vehicle Fire Investigation
Is your vehicle fire caused by arson or an accident? Our vehicle fire investigation service will determine the root cause of the fire. We investigate passenger cars, trucks, commercial vehicles, industrial equipment, mining equipment, etc. Check out our fire investigation page to learn more about our services. Also, read our blog entitled Fire Hazards – Examples and Prevention Tips.