Compare third-party car insurance quotes

Is third-party car insurance the cheapest option?

Not necessarily - and this can catch many drivers out.

While third-party insurance certainly used to be the cheapest option, that’s no longer reliably true. On average, a comprehensive policy cost £562, while TPFT was £920 and TPO was actually the most expensive option at £1,302*.

^{*Uswitch data, average cost of car insurance Q4 2025.}

Why is third-party insurance more expensive?

There are two main reasons:

1. Risk profiling - drivers who choose the minimum level of cover are often young drivers, less experienced, or have previous claims or motoring convictions. Insurance data suggests this group is higher risk, which pushes prices up.
2. Historical data - insurance data also shows that TPO policies were associated with a high volume of expensive, third-party claims.

It’s worth noting that when you claim for your own car or injuries, payouts are capped by your policy limits. Third-party claims work differently - serious injuries or long-term care costs can run into millions, making these car insurance claims far more expensive for insurers.

While all cover levels protect you for third-party liability, insurers’ data tends to show that TPO policies have the highest risk of high-cost claims. This is why it’s often more expensive.

As such, it’s always worth getting quotes for all three levels of cover when comparing policies.