By: Marcus Cheney, Insurance Sales Manager at MotorHappy

Third-Party Only insurance is beneficial for older vehicles that have depreciated in value and are fully paid off. These cars often aren’t worth enough to justify the expense of comprehensive insurance, as the cost of repairs or replacement in the event of damage could exceed the car’s value making it uneconomical to repair. If your vehicle is no longer a primary asset and you can afford to cover repairs yourself, Third-Party Only insurance may be ideal.

In the event of an accident involving the car listed on your policy, Third-Party Only insurance will cover:

• Injuries to passengers or individuals in the other vehicle
• Damage to another person's vehicle
• Damage to someone else’s property

In the event of an accident, you are responsible for paying the excess amount, after which your insurance will cover the remaining cost of the repairs to the Third-Party Only. Ultimately, the decision comes down to balancing the value of your car against the level of financial protection provided in your insurance coverage that you’re comfortable with.

“If a person’s financial circumstances may change or they need to reassess the long-term protection of their vehicle, upgrading from a Third-Party Only policy to a Third-Party, Fire and Theft policy, would be a viable option to consider,” says Marcus Cheney, Insurance Sales Manager at MotorHappy, a supplier of motor management solutions.

Although this type of policy is similar to Third-Party, Fire and Theft insurance, there are differences, both in price and coverage.

Third-Party Only insurance provides basic coverage, insuring only the damage you cause to another person’s vehicle or property. However, if you opt for Third-Party, Fire and Theft insurance, it covers third-party claims, fire damage (whether accidental, malicious damage or vandalism), and car-related crimes such as theft and hijacking.

Despite the limited coverage offered, motorists seeking basic coverage will find it useful. Other benefits include:

Affordability: The costs of this policy will be substantially lower than comprehensive insurance.

Liability protection: Even though the insured’s own vehicle may not be covered, having some financial support can be a significant advantage, especially if the insured can’t afford to pay out of pocket for damages to the third party’s vehicle or property.

Less risk exposure: While it doesn’t cover the insured’s vehicle, Third-Party Only insurance covers the most financially burdensome aspect of an accident—the liability for damages to others. This can provide peace of mind for drivers who prefer to self-insure for their own vehicle’s repair costs.

Simpler claims process: The focus on a single liability (the third party in question) helps reduce the time spent on evaluating damages and minimises the documents needed when submitting a claim.

Suitable for infrequent drivers: For those who drive occasionally or have a second car used infrequently, Third-Party Only insurance is an affordable option that provides liability coverage without the cost of additional protection that wouldn’t be necessary.

Cheney adds, "As the festive season approaches, it’s essential that drivers are covered—at the very least, accidental damages to another person’s vehicle or property. By opting for Third-Party Only insurance, you can save on premiums while still being financially safeguarded in the event of a liability claim, making it a very affordable option.”

The good thing is that you don't have to wait until you have a problem to start shopping around. To determine what level of protection you need for your vehicle, MotorHappy makes it easy to find the most suitable insurance cover, guiding you through each step and ensuring peace of mind throughout the process.