What is Third Party, Fire, and Theft Car Insurance?

A car is often one of our biggest investments, so taking care of it is a big priority.We’ve all heard of comprehensive car insurance, and you probably know what that does—it covers you for the widest range of scenarios when it comes to car cover. But what about third party, fire, and theft car insurance? Where does that fit in?

It’s a basic type of insurance and the unsung hero of budget-friendly car ownership. It’s ready to save the day when life throws a curveball your way (or directly at your beloved ride). Here’s what you need to know.

 

Third Party, Fire and Theft: Insurance for the Essentials

There are three main categories of car insurance in South Africa: comprehensive car insurance, third party, fire and theft insurance, and third party only cover.

Third party, fire and theft doesn’t give as much insurance coverage as comprehensive does, but it covers more than third party only insurance. Here’s a handy table to break it down:

	Comprehensive	Third party, fire + theft	Third party only
Accidents	✅
Theft + hijacking	✅	✅
Vandalism	✅
Fire + explosions	✅	✅
Damage to someone else’s property	✅	✅	✅
Weather damage	✅

 

Three coverage areas

Let’s get into more detail on third party, fire and theft coverage. Three terms = three things covered.

Firstly, it gives you third-party coverage.

It pays out for damages that you accidentally cause to other people or property by your vehicle. For example, if you're involved in an accident and it's deemed your fault, this insurance would cover the costs of repairing the other person's car or property.

Secondly, fire coverage.

It gives coverage if your vehicle is damaged or destroyed by fire, whether the fire is accidental or intentional.

So for example, if a short circuit or malfunction in your car's electrical system leads to a fire, or if there’s a mechanical failure or leak in your engine that causes it to overheat and catch fire.

It also covers arson. So if someone deliberately sets fire to your car, whether it's for malicious reasons or as part of a criminal act such as theft. Touch wood you never have to experience this!

Wildfires or a fire in your garage that caused damage to your ride would also be covered.

And lastly, theft coverage.

This part of the policy covers the loss of your vehicle if it's stolen, which is unfortunately something that happens fairly often in South Africa. Around 60 cars are stolen here a day, according to recent figures.

It also covers carjacking, break-ins, or parts of your car being stolen (like a battery or hubcaps).

 

What Does Third Party, Fire and Theft Cost?

As we’ve mentioned, third party, fire, and theft car insurance is the budget-friendly cousin of comprehensive insurance.

While comprehensive insurance can cost anything from R300 a month to thousands of rands for an expensive vehicle, third party, fire, and theft is usually under R500 a month. This all depends on your car, of course.

 

The reason it costs less is because it offers a lower level of cover. In particular, it doesn’t foot the bill for damage to your own vehicle if you’re in an accident. You’d have to cover your own repairs in that scenario.

So why would you go for this type of insurance at all? Well, it’s great for when you’re on a budget but still want some level of protection.

 

Do Your Research

So how do you choose the best third party, fire and theft cover for you? Using Hippo, of course. With us, you can compare insurance quotes from some of South Africa’s leading car insurance providers, making sure you snag the best deal for your four-wheeled friend.

You’ll save time, stress, and money.

 

Information about the above product is for information purposes only and may vary from insurer to insurer. If you are unsure, please seek financial advice.