What Is Third Party Motor Insurance?

What Is Third Party Motor Insurance?

Car Insurance is a must when it comes to driving on roads in the United Kingdom. The concept of car insurance was introduced to make sure that third parties are protected in the event of an accident. Car insurance was also put in place in order to make sure that any innocent parties that are involved in vehicle accidents are not left out of pocket. In the UK the minimum protection that you must have – legally – is third party only insurance. Third party only (TPO) insurance means that if you are involved in an accident and it’s decided that it’s your fault, all other parties will be compensated and your liability is covered but you would not be able to claim for the damage that has been incurred by your own vehicle.

There are a number of reasons why some drivers may choose to take out the minimum cover of a third party only policy, the main reason being that the premiums are often much cheaper than a full comprehensive policy. A lot of young drivers will be faced with particularly high premiums when they are new drivers as they are deemed as a high risk on the road; in this case the premiums are unaffordable so many young drivers choose to opt for third party only insurance so that they can actually afford to put a car on the road. Some insurance companies will not insure you on a policy that has any more protection than a third party only policy, if this is the case then it’s generally because of the low value of the car that you’re trying to insure.

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If a car is of a particularly low value then taking out a comprehensive policy would generally meant that you will be paying more for your insurance than your car is worth, which is pretty pointless;  it also means that, should you make a claim, because of the low value of your car, insurance companies are unlikely to pay out. As a pay-out is unlikely if you were to make a claim on a comprehensive policy the insurers encourage you to save your money by taking out third party only cover.

Before making your decision to take out a third party only policy based on the low insurance costs you should also bear in mind what this type of policy doesn’t cover you for before you make your decision. Third party only insurance is different to third party fire and theft; third party only cover only covers the third party involved in any accident, it does not cover your car if it is stolen and it does not cover your car in the event of a fire – if you want this extra cover then you should look into third party fire and theft insurance.

Some insurers will refuse to insure a car on a policy that is above third party only; this is generally the case if the car is over thirty years old so if you do require more protection then you should consider classic car insurers over general insurers.
Jess Smallman
About the Author:

Jess Smallman knows how important it is to obtain a car insurance quote before jumping in feet first, she recieved a quote from carinsurancequotes.uk.com/go!compare and decided to take them up on their great deal.

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