What is third party only car insurance?

To legally drive a car in the UK, you need third party car insurance as a minimum[1]. Every vehicle on the road must have at least this level of cover. The ‘third party’ refers to another person in an accident. You’re the first party, your insurer is the second party, and the third party is someone who makes a claim against you.

Third party only car insurance covers you for claims made against you if you cause an accident. If you hit and damage someone else’s car, your third party insurance will pay the costs for repairing or replacing their car. It will also cover a claim for a third party’s medical and other expenses. Plus, any passengers in your car are covered too – providing financial protection should they be injured in a road accident. But it won’t cover your costs, meaning it won’t pay out for your medical fees or damage to your vehicle.

How to get third party only car insurance quotes with Asda Money

The best way to find a deal on car insurance is to compare quotes from multiple insurance providers. You can do that quickly and easily through Asda Money. The car insurance comparison service is provided by Vast Visibility Limited.

Simply enter some personal details, such as your name, address, and date of birth. Add in information about your car, like the registration plate, and details about your driving history.

Asda Money then takes the hassle out of finding cheap car insurance by comparing quotes from more than 60 of the UK’s leading insurance providers to find a policy and price that suits you.

In March 2024, 50% of customers paid £791.06 or less for their car insurance. *

*This data is provided by Vast Visibility Limited and is based on gross sales and quote date. Renewal & failed quotes are excluded.

Get a quote for third party only insurance

What is covered under third party insurance?

The details of different third party only insurance policies will vary, but most policies cover the following:

Always check your policy carefully to make sure you have the level of cover you need.

Is third party insurance right for me?

With any insurance policy, it’s important to consider the pros and cons to make sure you buy the right insurance for your needs:

Advantages of third-party insurance

• You’ll cover the cost of damage and injury to other drivers: You can drive with the knowledge that your insurance will pay for the expenses of others if you cause an accident.

• It meets the minimum legal requirements for insurance: You need to have car insurance to drive on the road in the UK, and a third party only policy gives you that cover.

• Third party can be cheaper for older cars: Third party only insurance can be cheaper for older cars where the costs of repairs are likely to be more than the car’s value.

Disadvantages of third party insurance

• Your cover will be limited: Third party only insurance won’t cover your car or your belongings. Meaning if you have an accident, you could be left with some hefty bills.

• You could face expensive medical costs: If you cause an accident and you’re injured, third party insurance won’t cover your medical bills. You’ll need to do so yourself. Third party insurance also won’t cover legal costs and any lost income due to time off work.

• Third party insurance can be more expensive: People who opt for third party only car insurance can be viewed as a higher risk, meaning it can be more expensive than fully comprehensive insurance^[2].

What happens if you are involved in an accident and only have third party cover?

If you’re involved in a car accident, and you have third party only insurance, the following may apply:

If the accident is your fault

You’ll need to contact your insurance provider to claim on your insurance policy to cover the costs of any third parties who are claiming against you. Those third party claims could be for repairs to their cars, for damaged property, or medical expenses.

With third party only insurance, you won’t receive compensation for damages to your car or property, or for your own medical costs. You will also lose your no claims discount for that year unless you have no claims discount protection.

If the accident is not your fault

If the person who caused the accident has car insurance (they legally should have), you’ll be able to claim for your losses and costs against their insurance policy.

If you’re involved in an accident with a driver who doesn’t have car insurance, you won’t be able to make a claim for your losses and costs against your own third party only insurance (you would be able to with fully comprehensive insurance).

[1] Vehicle insurance: Overview - GOV.UK (www.gov.uk)

[2] https://www.forbes.com/uk/advisor/car-insurance/comprehensive-vs-third-party/