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Third Party car insurance
Get helpful information on Third Party car insurance.
What is Third Party car insurance?
Third Party car insurance is the most basic level of car insurance you can hold. It enables you to drive on public roads in the UK legally. This cover is designed to protect other drivers on the road if you have a car accident.
If you are found to be at fault, you’ll be covered against the cost of repairs to a third parties car or property.
Important information: This type of cover does not protect your car or property if it’s damaged in an accident.
Halifax Car Insurance is underwritten by a panel of insurers and is arranged and administered by BISL Limited. When getting a quote online you’ll be taken to BISL Limited’s online site with a new privacy and cookie policy.
What are the benefits of Third Party car insurance?
Not sure if Third Party car insurance is right for you? Here are the features and benefits that you can expect.
What’s covered with Third Party car insurance?
Third Party car insurance is the minimum level of cover you can take out to allow you to drive on public roads. It meets the legal requirements and provides cover to third parties in the event of an accident or incident. However, it doesn’t cover any damage to your car or property.
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Terms, conditions and exclusions apply to all benefits. In the event of a claim normal Excess applies and No Claims Discount may be affected. For more information please refer to the Insurance Product Information Document: Third Party (PDF, 209KB).
Optional extras
You can upgrade your car insurance policy from our range of optional extras. Here are the optional upgrades you can choose from:
- Guaranteed Replacement Car
- RAC Breakdown Cover
- Motor Legal Protection
- Keycare Cover
- No Claims Discount Protection (NCD)
Terms, conditions and exclusions apply to all benefits. Normal Excess applies and No Claims Discount may be affected.
Frequently asked questions
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In addition to the level of cover you choose, there are several things which can affect the cost of your car insurance premium:
- Your estimated annual mileage
- Any existing no-claims discount
- The group, age and value of your vehicle
- Security features or vehicle modifications
- Any amount of voluntary excess you choose
- Whether you live near a crime or accident hot spot
- Any named drivers who will also be using your vehicle
- What you generally use your car for. For example, travelling for work
- Where you usually park overnight. For example, off-road or in a garage
- Optional extras, such as enhanced legal assistance, guaranteed replacement car cover, breakdown cover etc
When shopping around for car insurance, make sure you check the terms and conditions carefully. Price is a key factor, but also make sure you’re getting the level of cover you’re most comfortable with.
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When choosing car insurance, cost is one factor. But it’s also important to make sure the cover you buy meets your individual needs.
The most basic requirement is getting cover so that you can drive legally. But car insurance also offers peace of mind and financial protection.
Depending on the level of cover you choose, insurance will help to cover the cost of any damage caused in an accident. That could include medical expenses and addressing any damage to vehicles and property.
Most insurers offer three types of cover:
- Third party – this is the most basic level of car insurance, only covering damage to someone else’s vehicle or property if you cause an accident. It doesn’t cover your own car or property
- Third party, fire and theft – the next level of insurance also covers your car for accidental or criminal fire damage, damage resulting from theft or attempted theft, and if your car is stolen
- Comprehensive – this is the highest level of car insurance, also covering any damage to your car and property if you’re involved in an accident
The cost of your individual insurance premium can vary, depending on a range of factors, including your age, location, driving experience and the car you’re looking to insure.
You might be able to reduce the annual cost by adjusting the amount you’ll contribute out of your own pocket if you have an accident. This is commonly referred to as car insurance excess:
- Increasing your excess amount might reduce your annual premium
- Reducing your excess could increase your car insurance premium
Before you choose, think carefully about how much you could realistically afford to pay out if you had an accident.
Optional extras might also be available, such as breakdown cover or legal protection, which you can add to your policy for an additional cost.
When you’re browsing for car insurance, it could help to:
- Have a copy of your existing policy, especially if you’re looking for equivalent cover
- Think about the type of cover you need, based on the way you use your car
- Have proof of any no claims – this could help you to secure a discount
- Have your driving licence and car registration number to hand
- Know the cost of your last premium, just for comparison
- Work out your annual mileage for the year ahead
Car insurance is one thing you hope you’ll never need to use. But choosing a policy which suits your needs will offer you peace of mind should anything happen.
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Each insurer sets their own expiry period, but with Halifax your quote is valid for 30 days, giving you time to consider your options.
Of course, if you’re happy with the quote you’ve received, you might like to go ahead and purchase cover. The choice is yours.
Just be aware, if any of your details change between getting a quote and buying cover, your premium costs could go up or down. But it’s important to give accurate information at all times, ensuring you’ve got the level of cover you need.
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When you get a car insurance quote, the insurer will complete a ‘soft’ credit check, confirming that the information you’ve given is accurate.
The credit reference agencies Halifax use include TransUnion, Experian and Equifax.
Although they might be visible on your credit report, soft credit searches won’t affect your credit score, or your ability to get credit in future.
When you go on to buy cover though, depending on how you choose to pay, there is potential for impact to your credit score.
If you pay monthly, it’s like taking a 12-month loan with your insurer:
- You’ll pay a bit more to cover any interest
- A ‘hard’ credit check will be completed, which could affect your credit record
- If you don’t keep up with your payments your policy could be cancelled, and your credit score could be affected. If you’re experiencing financial difficult at any time, please get in touch so we can find a way to help
However, this is a flexible option. By sticking to your monthly payments, it could eventually help to improve your credit score.
If you pay annually, there’s no aspect of credit, so you could benefit from:
- a cheaper premium, with no interest to pay
- the option to pay with a credit or debit card
However, if you fall behind with your credit card or other bills as a result of paying your car insurance premium in one go, you could cause damage to your credit score.
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Most insurers offer the option to pay your annual car insurance premium in monthly instalments, subject to status, or as a single payment covering you for the year ahead.
Paying monthly
In essence, this involves taking a 12-month loan with your insurer. That means:
- you’ll pay a bit more to cover any interest
- your application will show on your credit record
- If you don’t keep up with your payments your policy could be cancelled, and your credit score could be affected. If you’re experiencing financial difficult at any time, please get in touch so we can find a way to help
However, spreading the cost of your car insurance could help you to:
- avoid a single hit to your monthly budget
- automate your payments with a simple Direct Debit
- improve your credit score over time by sticking to your payment plan
Paying annually
By paying for your car insurance in one go, you could benefit from:
- a cheaper premium, with no interest to pay
- the option to pay with a credit or debit card
Obviously, the main disadvantage is having to pay out a lump sum, all at once.
You should also be aware that, if you don’t keep up with your credit card and other payments, your credit score could be affected, and your accounts or policies could be restricted or cancelled.
Halifax is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ. Bank of Scotland plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 169628.