Third Party Fire and Theft Private Hire Insurance

So you’ve decided to start up a private hire company in the UK. Maybe you have a fleet of vehicles, a group of reliable drivers and a large potential customer base but are you getting the best deal for your car insurance? Let’s face it; car insurance in the UK is expensive even for experienced and careful drivers so imagine having to insure a group of drivers operating large vehicles.

Is third party fire & theft private hire insurance the right choice for you? In most cases, it is less expensive than fully comprehensive and provides better protection than third party alone. Before you delve into the database of high quality insurers, it is best if you know what you’re purchasing.

What Does Third Party Fire & Theft Protect You Against?

Third party private hire insurance is the minimum legal requirement and while it pays for the damages of others involved in your accident, it does nothing to cover damages to your vehicle nor does it help with medical bills. Third party fire & theft is a step up the ladder though it still does not cover any damage sustained by you or your vehicle in an accident.

However, if your vehicle is damaged due to fire or is stolen, you can receive compensation. In the private hire industry, there are occasionally incidents which suggest having protection against fire and theft is a necessary purchase. For example, if someone tries to steal your vehicle and damages the bodywork while doing so, third party fire and theft insurance will cover the cost of the repairs. Additionally, you can claim if your vehicle has been damaged in a fire whether it is intentional or not.

In essence, third party fire & theft private hire insurance covers the following:

  • Damage caused to other people and/or their vehicles and property.
  • The costs associated with repairing other vehicles.
  • Medical costs incurred by third parties as a result of the accident.
  • Any legal claims made against you due to the accident.
  • Fire damage or theft to your car.

It does not cover:

  • Medical expenses you incur due to injuries caused by the accident.
  • Any repair costs associated with your vehicle.

Is Third Party Fire & Theft A Money Saver?

As this form of private hire insurance will not pay out for any damage caused to your vehicle and your medical bills, it is normally a less expensive option than fully comprehensive insurance. Therefore, it is usually the best choice for people who drive an inexpensive vehicle which they could afford to replace if it was involved in an accident and written off.

Those who are new to driving may also choose this option because it’s potentially a cheaper way of getting on the road. However, many insurers are bumping the cost because of the popularity of third party fire & theft. As a consequence, it is essential for you to check out as we provide you with quick and easy comparisons of insurers so you get the best possible deal.

In our experience, third party fire & theft may not be the best choice for private hire companies. Most customers expect a high level of service from such organisations and this includes high quality vehicles. As such, you need the added protection provided by fully comprehensive. Whatever you decide, never make your choice based on price alone. Always look at the coverage which best suits your individual circumstances and pick a policy that ticks all the right boxes regardless of price.

Beware Hidden Fees

No matter what form of private hire insurance you choose, it’s essential to keep your eyes peeled and ensure you’re not getting ripped off because of the ‘hidden fees’ insurers like to sneak past you. Below, we look at some of the fees you could be charged and believe us when we say these can really hit your bank balance hard!

  • Alterations: Once you purchase your insurance policy, it can’t be changed unless you’re willing to pay for it. Did you know there are ‘admin fees’ associated with minor changes to your policy such as a change of name due to marriage, a change of vehicle or a change of address? Most popular insurers will charge up to £25 in ‘policy adjustment’ fees which is a real pain.
  • Cancellation: Not happy with your private hire insurance? Tough luck! Most insurers have a ‘cooling off’ period of around 14 days but once that passes, cancelling your policy is an expensive process. Expect to pay £50+ and if you decide to cancel halfway through the policy term, there are additional fees. Cancel with six months left and you may only receive the equivalent of four months insurance. Cancel with a couple of months left and you may receive no refund at all!
  • Monthly Payment: If you don’t want to pay all the money in one lump sum you can pay monthly via direct debit. Unfortunately, you will be charged an APR for monthly premiums which is as high as 53% in some cases!
  • Renewal Fees: In the unlikely event your insurer provides you with a low cost renewal quote, don’t celebrate just yet! Expect to be hit with a renewal fee of around £30. These fees are usually completely unnecessary so be sure to check for these nasty surprises before agreeing to anything.

Although third party fire & theft covers more than the bare minimum level of insurance, it may not be enough for private hire companies. Perhaps if you are just starting up your business it is possible to stick with this option until you get more vehicles and drivers but established businesses always opt for fully comprehensive.

It’s important to take the time to compare the prices charged by insurance companies because there are usually disparities across the board. Be sure to utilise the comparison tool available at as you will find the lowest priced insurance for your individual needs within seconds.

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