Car insurance plays an important role in ensuring the safety and well being of all road users. One of the most important components of cheap car insurance insurance is what is known as third party (3rd party) insurance. 3rd party insurance is specifically designed as well as government mandated, in most cases and in most countries, as a bare minimum insurance device to ensure that third parties are covered both in terms of property damage as well as personal injury situations. In addition to standard 3rd party insurance is 3rd party fire and theft insurance.
Even though standard 3rd party insurance is the most basic legal requirement of any and all road users and vehicle owners it does not cater to 3rd party fire and theft insurance. 3rd party fire and theft insurance is by and large considered to be above and beyond these basic requirements and is therefore a separate and additional add on cost to basic 3rd party insurance.
A Breakdown Of what 3rd Party Insurance Is As Well As 3rd party Fire And Theft
There is a certain amount of confusion surrounding the standard definition of what exactly 3rd party insurance is and how it works. The way that a standard 3rd party insurance works is to indemnify the driver by the insurance company against liability to 3rd parties, in other words, you as the 3rd party insurance holder is guilty of causing an accident and subsequent damage to a 3rd party, either in the form of property damage or personal injury.
In this case you are the first party and the insurance company forms the second party, the 3rd party is the person or persons that has been affected by your accident. 3rd party insurance does not however cover any damage or personal injury that you might have sustained as a result of the accident; it will only cover property damage and or personal injury.
An additional add on to 3rd party insurance is 3rd part fire and theft insurance. This is above the standard 3rd party insurance and it is interesting to note that the majority of motorists do not in fact own such 3rd party fire and theft insurance. 3rd party fire and theft is designed to insure against vehicle theft and vehicle damage sustained through fire, for example if someone steals your car and subsequently sets fire to it in order to hide any evidence.