Insurance glossary
Third party only
Also known as: TPO, third party insurance, third-party only
Quick definition
The cheapest legal car insurance option in South Africa. Covers only damage you cause to other parties. Does NOT cover theft, hijacking, fire, hail, or any damage to your own vehicle. Best for older, lower-value cars where you can self-fund replacement.
Understanding Third party only
South Africa does not legally require car insurance, so "cheapest legal option" really means the cheapest meaningful protection. What third-party only buys is cover against the one loss that can be financially ruinous: being held liable for damage to someone else's vehicle or property. Hit a high-value car or a delivery vehicle and the bill can dwarf your own car's worth — that is the risk TPO is built for.
Everything to do with your own car is on you. Theft, hijacking, fire, hail, and any accident damage to your vehicle are not covered, so TPO only makes sense where you could replace your own car from your own pocket without hardship — typically an older, lower-value vehicle that is paid up.
Because it carries no theft or own-damage exposure for the insurer, TPO is the cheapest tier by a wide margin. The trade-off is stark: a single bad night — a stolen car, a hail storm — leaves you with nothing to claim.
Definitions reviewed by the OneCompare editorial team. OneCompare (Pty) Ltd is an Authorised Financial Services Provider (FSP 55551).
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