Third party fire and theft car insurance is one of the cheapest types of auto insurance policy available. It operates in the same way as third party liability insurance with additional coverage for theft or fire damage to the covered vehicle.
There are two types of auto insurance available: 1st party insurance and 3rd party liability insurance. When discussing vehicle insurance the policy holder is known as the first party and the insurance company is the second party. The 3rd party is any other person or person involved in an accident with you or whose property was involved in the incident. Thus, third party only car insurance covers any damage to the other driver or their property that is the fault of the insured driver, but it does not cover any damage to the first party or the insured vehicle. Passengers in the vehicle driven by the first party are also covered with this type liability insurance. Fire and theft insurance adds additional coverage for damage caused by fire, lightening, explosion or theft to the insured vehicle. Some policies also cover damages from theft of audio equipment installed by the car’s manufacturer and for car accessories fitted onto the car or stored in your own private garage.
While 3rd party vehicle insurance is usually the lowest cost option for auto insurance, it is usually possible to add theft and fire coverage with only a slightly higher premium. While losses from theft or fire damage are fairly rare occurrences, adding coverage for these losses to your policy is often worth considering for the nominal additional fee involved.
While commonly used by younger drivers because of high premiums, the number of people utilizing this type of policy has risen in recent years. Due to the high price of automobiles and current economic conditions, more people are holding onto their older cars and opting for less coverage.
Related posts: