Third Party Only Motors Insurance provides for compensation to be paid to third parties killed or injured or who suffer loss due by a motor vehicle accident. Every motorist in the UK is required by law to have Third Party Only cover as a minmum.

Common examples of third parties in motoring accident cases include the driver of the other car, his passengers, pedesterians, cyclists and passengers in the drivers own car, the owner of a wall or public structure that may be damages, eg garden wall or electricity pole.

The insured driver or his car are never covered in any circumstances under his own Third Party Only insurance policy. If he has an accident with another car which is not his fault, he should be covered by the other drivers third party cover.

The level of cover is usually very high, typically in the region of £20m. Although the risk of the full compensation being payable is quite low, the risk of moderat claims (£10k and upward) is quite high. We will see later that the basis of all three types of insurance is third party cover, and Third Party, Fire & Theft and Comprehensive cover are rather minor variations of this package. Therefore, it is this third party aspect of motor insurance that is most closely associated with motor industry insurance costs.

Third Party Motor Insurance is normally available for a price between about £300 per annum up to about £1200 per annum. In certain cases, it can quoted outside of this price band. The precise cost is dependent on the answers in the proposal form.