What Is the Difference Between Comprehensive and Third Party Car Insurance?
Published 8th of January 2013·Updated 26 April 2026
Reviewed by: Reviewed for accuracy April 2026
The key difference is this: third party insurance covers damage you cause to other people and their property, but not damage to your own vehicle. Fully comprehensive insurance covers everything, including damage to your own car, whether or not the accident was your fault. In the UK, third party insurance is the legal minimum required to drive on public roads.
Short Summary
There are three main types of car insurance in the UK: third party only, third party fire and theft, and fully comprehensive. The law requires at least third party cover.
Third party insurance pays out for damage or injury you cause to other people, their vehicles, or their property. Your own vehicle is not covered if you are at fault.
Fully comprehensive insurance adds cover for your own vehicle, including accidental damage, theft, and fire, regardless of who caused the accident.
Contrary to a common assumption, fully comprehensive insurance is not always more expensive than third party cover. Comparison sites including Compare the Market and MoneySuperMarket frequently return cheaper comprehensive quotes than third party quotes.
Your excess is the amount you pay towards any claim before your insurer covers the rest. All policies, including comprehensive ones, include a compulsory excess set by the insurer and an optional voluntary excess you can choose to increase.
What does third party insurance cover?
Third party car insurance is the minimum level of cover required by law in the UK under the Road Traffic Act 1988. It covers:
- Injury to other people involved in an accident you cause
- Damage to other people's vehicles or property caused by your vehicle
- Legal costs arising from a claim against you
It does not cover any damage to your own vehicle, even if the accident was entirely your fault. If your car is written off in an accident you caused, you receive nothing from your insurer.
Third party fire and theft adds two additional protections to the basic third party policy: cover if your car is stolen, and cover if it is damaged by fire or vandalism. Your own accidental damage is still excluded.
What does fully comprehensive insurance cover?
Fully comprehensive insurance (often called "fully comp") covers everything included in third party fire and theft, plus damage to your own vehicle in an accident, regardless of who was at fault. The table below sets out the key differences.
| Cover type | Other vehicle/property | Your own vehicle | Fire and theft | Accidental damage (your car) |
|---|---|---|---|---|
| Third party only | Yes | No | No | No |
| Third party, fire and theft | Yes | No | Yes | No |
| Fully comprehensive | Yes | Yes | Yes | Yes |
Most comprehensive policies also include additional benefits such as a courtesy car while yours is being repaired, windscreen cover, and personal accident cover, though these vary between insurers. Check your policy documents for the exact scope of cover.
Is fully comprehensive insurance more expensive?
Not necessarily. This surprises many drivers, but comprehensive policies are often cheaper than third party options on UK comparison sites. The reason is statistical: drivers who choose minimum third party cover are, as a group, more likely to make claims, which pushes up the premium for that tier. If you have not compared both levels recently, it is worth checking both options when you next renew.
What happens if someone else crashes into you?
If you are not at fault in an accident, the other driver's insurance covers your losses, regardless of what level of cover you hold. You become the "third party" in their claim. Your own insurance is not claimed against, your no-claims discount is unaffected, and you are entitled to full compensation for any damage to your vehicle and any injury you sustain.
The practical implication: even a third party policy gives you full protection when someone else is at fault. The difference matters only when you are the one causing the damage.
How does the excess work?
Every car insurance policy in the UK includes an excess, which is the amount you contribute towards any claim before your insurer pays the remainder. There are two types:
Compulsory excess: set by the insurer, not negotiable, and typically between £100 and £350 for most standard policies.
Voluntary excess: an additional amount you agree to pay on top of the compulsory excess in exchange for a lower premium. Increasing your voluntary excess reduces your monthly or annual cost but increases what you pay out of pocket if you do make a claim. Only increase your voluntary excess to an amount you could comfortably afford to pay in one go.
Which level of cover is right for you?
For most drivers, fully comprehensive insurance is the right choice. It offers the most complete protection, and as noted above, it is often not more expensive than third party cover. Third party only cover may be worth considering if you drive an older, low-value car where the cost of a comprehensive premium exceeds the car's market value, meaning a payout after a total loss would not justify the additional cost.
Frequently asked questions
Is third party car insurance cheaper than fully comprehensive?
Not always. It is a common assumption, but fully comprehensive policies frequently return lower quotes than third party policies when compared on sites such as Compare the Market, Go.Compare, and MoneySuperMarket. The reason is that drivers who opt for minimum cover tend to make more claims on average, which raises the cost of that tier. Always compare all three levels of cover when shopping.
Do I need third party insurance if I have fully comprehensive cover?
No. Fully comprehensive cover includes everything in a third party policy, plus cover for your own vehicle. You do not need to hold both separately.
What is an agreed value policy?
An agreed value policy (sometimes called a guaranteed value policy) fixes the payout amount at the start of the policy, based on the agreed value of your vehicle. Standard policies pay out the market value at the time of the claim, which may be lower than what you paid for the car. Agreed value policies are most commonly used for classic cars or vehicles where market value is difficult to assess.
Does my insurance cover me to drive other cars?
Some fully comprehensive policies include a "driving other cars" extension, which provides third party cover when you drive a vehicle you do not own, with the owner's permission. This is not automatically included in all policies. Check your policy schedule or call your insurer to confirm whether this extension applies to you.
What is a no-claims discount and does it apply to all cover types?
A no-claims discount (NCD) is a reduction in your premium for each year you drive without making a claim. It applies across all levels of cover: third party, third party fire and theft, and fully comprehensive. Building up an NCD of four or five years can reduce your premium by 50 to 60 per cent, according to the Association of British Insurers.
What happens to my no-claims discount if someone hits my parked car?
If you can identify the other driver and their insurer accepts liability, your NCD is unaffected. If the other driver cannot be identified, you will need to claim on your own policy, which typically reduces your NCD unless you have purchased NCD protection. Some insurers also offer "fault-free claim protection" which preserves your NCD in such circumstances. Check your policy documents for the specific terms.