What is Third party fire and theft Motor insurance?

Whilst technically your legal requirements for motor insurance are covered by a third party only policy they only protect the people with whom you share the roads, not yourself. The law requires that people who are involved in an accident that is not caused by themselves, be compensated. So, with third party insurance you may be protected against other people's claims against you, but not if you are responsible for the accident.

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What are the laws regarding Motor insurance in the United Kingdom?
Motor insurance originated in 1930, when the government introduced a law that required every person who used a vehicle on the road to have some kind of motor insurance policy. This had to be third party personal injury cover at the very least.
What types of Motor Insurance Policy are available?
Since 1930 it has been a legal requirement for all drivers of motor vehicles to be covered by insurance for a minimum of third party claims, that means you have to be insured against accidents that are caused by you and have damaged a ‘third party’s’ vehicle.
How do I claim if the accident involves a third party?
In insurance terminology, a third party is defined as anyone else involved in an accident who is not the policy holder. Under UK law you are required at all times to have a minimum of act only third party insurance, but in reality most insurers only offer full third party insurance. This insurance will ONLY protect any damage done to third parties involved in an accident, not to your own vehicle. There is also the question of personal compensation, usually this is also covered by a third party policy, if in doubt check your policy documents.
Who should I contact should I wish to report a problem with an Insurance Company?
The general insurance industry is now regulated by the Financial Services Authority (FSA).
As a result of the accident, my car has been damaged - can I go ahead and get it repaired?
If you have taken out comprehensive car insurance cover and wish to claim under the policy, a specific claims procedure will be given to you when you contact the Claims Line to notify them of the accident. You should not repair your vehicle without the approval of your insurer.
In the event of a fire, Fire damage to your vehicle is likely to be quite serious. In many cases, fire damage can completely write off your vehicle and permanently prevent you from able to use it. A fire could be caused by the cars electrical system, through vandalism, or occur after your vehicle is stolen. In many circumstances, thieves may use your vehicle for a specific purpose, then destroy the evidence by burning the vehicle.

However carefully you drive your vehicle, you can’t actually control what happens to your vehicle when you are not around. If a thief really wants to steal your vehicle, you can't do all that much about it. When insurers ask you if your vehicle has a security system, they may reduce your premiums if you have a security system such as a immobiliser or an alarm. However advanced the security technology within your car you have tom understand that the thieves become just as sophisticated. If your car gets stolen or damaged during a theft, third party fire and theft cover will ensure you receive the payout needed to replace your vehicle.

When you claim on an car insurance policy you are usually expected to pay an excess. The excess is the value that you have to pay as part of your claim. Each time you make a claim you will be expected to pay the excess, so in theory you are insuring yourself for the excess part of your claim. This could be anything from £50 up to amounts in excess of £1000. In some circumstance the insurance company will be prepared to let you off the excess should you have taken every possible precaution in attempting to stop the theft.
Insurers apply an excess in an attempt to both reduce your monthly premiums and to reduce the risk they face themselves. By increasing the personal cost of making a claim they force you to try especially hard to avoid claiming on the insurance (N.B. Please be aware after making a claim your insurance premiums are likely to rise on the policy renewal date).