Third party fire and theft insurance is defined as auto insurance that covers all injuries and/or death to a third party as well as legal fees that result from an auto accident. Not only will it provide sufficient third party insurance, but it will insure your vehicle if it is stolen or damaged/destroyed in any way as the result of a fire. What this coverage will not provide is insurance coverage for damage to your vehicle during a theft or an attempted robbery of your car. In most cases, this coverage does not provide you with protection from vandalism or acts of God such as a hail storm or an animal causing damage to your vehicle.
Third Party Fire and Theft: Car Insurance Explained
This coverage is certainly more than having the minimal amount of auto insurance because you are insured from fire damage and theft. Not only that, but you will already have third party liability protection, which means that if you get into an accident with another person (e.g. a third party), you will be insured if you cause the accident. Therefore, if the other person decides to file a lawsuit or needs to collect compensation, you will be covered under your own insurance plan and your insurers will reimburse them if the reimbursement is justified.
Third Party Fire and Theft vs. Comprehensive Coverage
How does third party fire and theft insurance compare to comprehensive car insurance? Well, comprehensive car insurance is certainly going to be more expensive because it provides extra coverage. It will protect you from fire, theft, third party, as well as damages that are caused to your vehicle as a result of thieves, vandals, nature (e.g. the weather, animals, etc.), as well as Acts of God. With comprehensive auto insurance, you pretty much have everything that you could possibly need to be covered; that is why it is labeled as “comprehensive.” You will notice that third party fire and theft car insurance quotes are generally cheaper in comparison to comprehensive quotes.
Should You Get Fire & Theft Coverage?
If you have taken a look at the third party fire and theft car insurance definition and like what it covers (e.g. theft, fires, and third party damage), then you should probably get this type of policy. However, if you don’t think that you need this much coverage, you should keep in mind that the minimal amount of insurance that is legal to have is basic third party coverage. Basic third party liability coverage protects you by providing insurance if you cause damage to another person; whether it be a physical injury or their automobile in an accident.
Deciding on the Best Type of Policy for your Situation & Budget
Individuals that want to make sure that they have more coverage than third party fire and theft should make sure that they take a look at some comprehensive policies. Whenever you are shopping for car insurance, make sure that you think about whether certain types of coverage are practical for your living situation and vehicle.
If you drive an expensive car in a very busy city where crime and vandalism is high, then you may want to get a more comprehensive policy. However, if you live in a medium sized city and you think that it’s practical to get fire and theft protection, then look for one of these types of policies. Most people today end up buying basic, standard insurance because it’s the popular choice. You know what’s best for your own situation, so make sure that you make a logical, practical decision regarding your auto insurance coverage.