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?

Although this is usually the case, it’s always important to check the small print for any policy before you sign up.

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:

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

If the accident is your fault

You’ll need to contact your insurance provider and claim on your insurance policy to cover the costs of any third parties 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 claim for your losses and costs against your third party only insurance (you would be able to with fully comprehensive insurance).

How does third party only car insurance differ from third party fire and theft?

Third party only car insurance only covers you for damage to another person’s car or property, plus their medical expenses. Third party fire and theft on the other hand offers an added layer of protection for your vehicle too. This means you can claim if your car has been stolen or damaged in a fire. But you still can’t claim for damage to your own vehicle following an accident that was your fault.

What’s the difference between comprehensive car insurance and third party?

Whilst third party only gives you the minimum level of cover, fully comprehensive is the highest level of cover available. With fully comprehensive car insurance, you have all the benefits of third party fire and theft, but you’re also covered for damage to your vehicle as well as someone else’s following an accident that you caused. You can also claim for your medical expenses.

How much does third party car insurance cost?

The cost of third party insurance depends on a range of factors related to your risk as a driver. These include:

• Your age: Young drivers are generally viewed as a higher risk.
  
  
• Your address: Insurers look at both traffic and crime rates where you live.
  
  
• The car you drive: Generally, more powerful cars are viewed as riskier.
  
  
• Your job: Certain jobs that require more time on the road attract higher insurance costs.
  
  
• How you use your car: Local use will likely be viewed as less risky than long daily commutes.
  
  
• Mileage: More miles driven in a year will mean a higher chance of being in an accident.
  
  
• Driving history: If you’ve made claims previously, been in accidents or have points on your licence, this could count against you.

You might also expect third party to be the cheapest type of car insurance as it offers the lowest level of cover, but this isn’t always the case. The average cost of car insurance through the Asda Money comparison service is:

*Based on premiums sold through the car insurance comparison service with Asda Money provided by Vast Visibility Limited for the period 1 January 2025 to 28 February 2025, 51% of customers paid £930.04 pr less for comprehensive car insurance, £1354.81 or less for third party fire and theft, and £1053.04 or less for third party only car insurance.

Why is fully comprehensive car insurance often cheaper than third party?

You may assume that third party insurance will be the cheapest option as it provides the lowest cover level, but it can be more expensive than fully comprehensive.

Insurers base their car insurance quotes on risk, among other factors. Some insurers may feel that drivers who take out third party only car are more likely to make a claim than those with comprehensive insurance. The higher the risk, the higher premium.  

How can I get cheaper third party car insurance?

The following may help reduce your third party insurance costs:

• Being a safe driver: You can prove you’re a safe driver by not making a claim.
  
  
• Taking a Pass Plus advanced driving course: If you do this within two years of passing your test, some insurers (but not all) will reduce the cost of your car insurance premiums.
  
  
• Choosing telematics (black box) insurance: This is another way to prove you’re a safe driver. A black box in your car or an app on your phone tracks your driving and sends the data to your insurance provider. The data on your driving should help you get a cheaper premium when it’s time to renew.
  
  
• Changing your car: Driving a vehicle in a lower car insurance group can bring down the cost of your car insurance.
  
  
• Increasing your voluntary excess: Your voluntary excess is the amount you pay out when you make a claim. Increasing it can bring down the cost of your car insurance. Make sure it’s a figure you can afford and are comfortable paying.
  
  
• Reducing your mileage: Driving less may mean insurers view you as less likely to have an accident, which may reduce the cost of your car insurance. However, you will need to provide an accurate estimate to keep your insurance valid.

What add-ons are available for third party insurance?

• Courtesy car cover: To give you some wheels while your car is being repaired.
  
  
• Breakdown cover: So that you don’t get stuck on the road if you break down while driving.
  
  
• Motor legal protection: Helping to cover your legal fees if someone makes a claim against you following a road accident.
  
  
• Key cover: To help pay for a lost or damaged key.

Personal accident cover: This can help provide protection for a serious injury or death.