In the UK, third party only bike insurance is the lowest amount of cover allowed by law. 3rd party only insurance as a result is often the cheapest way to insure you motorbike, but you must be aware that it is only cheap because the insurer places tight restrictions on when it will pay out.
It is worth keeping in mind that although you will be saving money by opting for third party insurance, it may cost you more money in the long run should you need to repair or replace your bike after a theft or crash.
As the name suggests, third party insurance will only pay out for the damage incurred to ‘other person(s)’ involved in the accident. Third party insurance will not offer you any payout to help with the costs of fixing or replacing your own bike.
Third party cover is a minimum requirement by law as it ensures that other users on the road will be properly compensated in the event that you cause an accident or damage another persons property.
There are only a set number of circumstances in which a third party insurance policy will payout. These include:
- If you injure another rider or driver that is included in a collision with you, for which you were at fault. In this situation, your insurance policy would cover their medical expense for example.
- If another road users’ property or vehicle is damaged as a result of an accident for which you were at fault. In this case you insurance would be required to pay for the repairs to their damaged vehicle, or even a replacement.
Your third party bike insurance will NOT offer you any financial assistance for the following situations however:
- If your bike is stolen.
- If your bike is damaged in an accident that wasn’t the fault of another party.
- If you need to pay for medical treatment as a result of an accident – unless it was someone else’s fault, and you can claim against them.
In the event that a case is labelled a ‘no-fault accident’ you will have no cover.
In conclusion, whilst third party may be the cheapest, it is also the most basic of cover, and if you can afford it, a much better idea would be to opt for a greater level of cover such as third-party, fire and theft, or fully comprehensive.
When shopping around for your bike insurance online, it may be possible to improve the level of protection you receive without having to spend too much more.
However, if you find that your money won’t really stretch very far, there are some cases in which third party bike cover on its own may be suitable.
If the bike you’re looking to insure isn’t of a high value and not necessarily worth much, you will stand to lose less money if it has be written off following an accident, or if it’s stolen and your insurer won’t pay out for a replacement.
In some cases this can make more sense when you take into consideration the excess you are required to pay for each claim. In the case of any repairs or replacement, even with a fully comprehensive policy, you will have to foot the first part of any bill.
If you reach the conclusion that your motorbike is only worth a little more than the potential excess you’ll have to pay, third party cover may be more desirable.
When it’s all said and done, taking out third party only insurance is a risk. A risk that you need to be aware of in advance so that you know what to expect from the policy.
