Finance glossary
Third-Party Cover
Also known as: Third-party only, TPO, Third-party, fire and theft
In simple terms
Third-party cover is the most basic motor insurance. It pays for damage or injury you cause to other people, but not for damage to your own car.
On this page
What does third-party cover mean?
Third-party only (TPO) is the minimum level of car insurance the law requires. It covers your liability for injury to other people and damage to their property or vehicles if you are at fault.
“Third-party, fire and theft” adds cover for your own car being stolen or damaged by fire, but still not for accidental damage to it.
How third-party cover works
If you cause an accident, your insurer deals with the other party’s injury and damage claims. Repairs to your own car after an at-fault accident are not covered under TPO — you pay for those yourself.
Driving without at least third-party cover is a criminal offence in the UK.
How could this affect me?
Third-party can look cheap, but if you damage your own car in an at-fault accident you get nothing towards it. Comprehensive cover is often similar in price or even cheaper, so it pays to compare.
Choose the level of cover on what you could afford to lose, not just the headline premium.
Things to watch out for
- Your own car’s accident damage is not covered under third-party only.
- Comprehensive is often a similar price — always compare.
- Driving uninsured is a criminal offence.
Know your rights
- It is a legal requirement (Road Traffic Act 1988) to have at least third-party motor insurance to drive on public roads.
- You can complain about an insurer and escalate to the Financial Ombudsman Service.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- GOV.UK, Vehicle insurance (opens in a new tab). Accessed 22 Aug 2026.
- MoneyHelper, Types of car insurance (opens in a new tab). Accessed 22 Aug 2026.