Third Party, Fire & Theft

This type of coverage protects you from financial liability that arises where an accident you have caused results in damage to another person’s car, as well as damage to or loss of your own vehicle caused by theft or fire. It does not include cover for accidental damage that you might cause to your own vehicle. As a result, it is more affordable and better suited to older vehicles that do not have a high retail, market or trade value.

Fire can cause major damage to your car. Aside from ruining the cosmetics of the vehicle – such as stripping paint and incinerating the interior – fire can destroy the sophisticated computers that are responsible for much of the car’s functionality. While superficial damage may be easily remedied, a more severe blaze can cause the complete destruction of your vehicle. Although engine fires, garage fires and those caused by car accidents may seem unlikely, they are a reality and it is best to be insured against them to prevent the loss of your mode of transport.

Third Party, Fire & Theft Car Insurance covers any damage or loss that other people may sustain due to an accident that you have caused. However, neither you nor your vehicle are covered for damage. Only Comprehensive Car Insurance provides financial protection for damage caused to your vehicle. If you wish to cover yourself against bodily injuries or death resulting from an accident, you will have to take out additional personal accident insurance. Alternatively, you can claim from the Road Accident Fund.

While Third Party, Fire & Theft Car Insurance covers your car in the event that your vehicle is stolen or hijacked, your insurer will not pay out for any damage caused to the car during attempted theft or hijacking. Any accidental damage caused to your car is excluded from this type of policy and will not be covered by your insurer.

There are three parties to every Third-Party Insurance claim. The first party is the person who holds the insurance policy. Their insurance company is the second party. The third-party is any other individual involved in the motor vehicle accident; there may be multiple third parties involved in any one accident. Whenever an incident occurs, you are the first party and your insurer is the second party, regardless of whether you or a third party are at fault.

Third party, fire & theft is typically less expensive than comprehensive insurance. If you have an older car model or want to keep your insurance premiums low, third party, fire and theft cover may provide adequate protection. Comprehensive insurance covers additional risks such as accidental damage (even if the collision is your fault).