Third-Party Only Car Insurance

‘Liability’ is a legal term that means you are responsible for something. In the case of 3rd party car insurance claims, this means you need to pay to repair or replace a car that you have damaged. In road accidents, you’re only responsible for the damages to property, not for the damages that arise if another person is injured.

That’s what the Road Accident Fund (RAF) is for – the injured person would make a claim with the RAF. However, in other scenarios away from the road, it’s certainly possible to cause an accident that results in physical harm to someone else where you would have to pay damages for their injuries. An example of this would be if someone trips over a carpet and is injured in your home.

Even though it isn’t a legal requirement, we strongly recommend you take out – at the very least – a basic third-party plan.

If you are held legally liable to pay for the damage your car has done to someone else’s property, you don’t have much choice in the matter. If the expenses are more than you can afford (think of how much it would cost to replace a Ferrari if you crashed into one and it was written off), you could go bankrupt trying to pay it off. Don’t put your and your family’s lifestyle at risk by driving without third-party car insurance.

At Budget, we don’t ask too much of our customers. Only that they follow the basic law and rules of the road. Therefore, if you do any of these things, you won’t be covered: 

• Drive under the influence of alcohol or drugs.

• Have an endorsed or invalid driver’s licence.

• Drive an unroadworthy car.

• Leave the scene of an accident without recording the details of the accident and everyone involved.

• Race in your car.

Finally, we won’t payout if you use your car to earn an income – you need special insurance for this. Chat to us if you need a different kind of third-party car insurance.

It might seem obvious that third-party cover will always be cheaper, but that isn’t necessarily the case, especially if you look at it over a long period of time. 

It’s true that your monthly premiums are going to be lower with 3rd party cover than what you’d pay on a comprehensive plan. But because many people take out third-party cover for the wrong reason (it’s the cheapest option), they often end up paying more in the long term.

This happens when the insured’s car is stolen or written off and they can’t afford to buy another car because they didn’t have insurance to cover theft or accidental damage. Rather than using the payout they would have received on a comprehensive plan to buy a new car, they need to start saving for a deposit from scratch. That’s money spent on taxis, cabs, and your friends’ petrol tanks rather than your own car.

Whether you cause an accident or not, it’s important to follow our step-by-step accident guide straight away. Once you’re done with the basics, you can worry about your third-party insurance claim. 

Remember to never admit fault after an accident, no matter if you believe you were in the wrong, before you’ve reported the accident to us. We need to investigate the incident and liaise with the other driver’s car insurance company. If you admit fault, it can affect the outcome of our investigation and negotiations.