Third party cover is the legal minimum level of protection you need in the UK, and it covers damage done to the other car if you are in a collision. However, for many people, third party doesn't cover a wide enough range of situations. Some people choose to opt for the next level up: third party, fire, and theft. This form of insurance provides compensation if your car is stolen or destroyed by fire. However, opting for third party, fire and theft won’t provide you with any cover if you are involved in an accident that was your fault – so bear this in mind when considering how much protection you will require.