Insurance Glossary

Third-party insurance

Last reviewed 25 July 2026 · by the Savvy Insurance editorial team

What is third-party insurance?

Third-party insurance only pays for loss or damage you cause to someone else's vehicle or property. It does not cover your own car. It is the cheapest type of cover and suits older, low-value vehicles.

Example

If you damage another car, third-party cover pays for their repairs but not yours.

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