Third party fire and theft car insurance is coverage that provides protection from theft, fires, and car damage that is caused by a third party. This coverage is very practical for people that live in larger cities that drive often because there is greater risk of your vehicle actually suffering a fire and/or theft.
If you live in a smaller community, the chances of your vehicle being involved in a fire are very slim. However, people that are really concerned about their new cars and/or just want to make sure that they have the maximum amount of insurance, should probably take the time to purchase this type of a policy.
The only difference between third party fire and theft compared to comprehensive car insurance coverage, is that with comprehensive, you get protection from things like animal damage, Acts of God (e.g. nature), and weather damage. Most people do not need to get a fully comprehensive policy because the cost is much higher than just basic third party fire and theft coverage.
In fact, some people can settle for standard auto insurance, which doesn’t even include protection from fire or theft. Are you required to buy third party insurance protection as a driver? Actually, no you are not required to buy this type of coverage, but each state varies in the minimum amount of insurance required.
In each state within the U.S., you need to buy a specific amount of insurance for the following: property damage protection, personal injury protection, and total accident protection. Some states may require you to purchase a minimum of $10000 for property damage, $15000 for personal injuries, and $30000 for total accident protection.
Most legal professionals in every state though, will tell you to usually buy double or triple the minimal amount so that you keep your assets safe if you get into an accident. Realize that you don’t need third party fire and theft coverage, but it may be smart to have the extra protection just in case of the worst scenario.