If you read yesterday’s blog post, you’ll understand this principle from the insurer’s point of view (moral hazard).
Having said that, this one is not as cut and dried as 3rd party ONLY policies, because the insurer would still have to pay out for fire damage and theft claims. The difference in price between Comprehensive and 3rd Party Fire & Theft can vary wildly depending on numerous other factors.
So, always start by looking for a Comprehensive policy and then compare what the savings – if any – would be for 3rd Party Fire & Theft. You will often be surprised at how much extra value you get from the Comprehensive option which is sometimes actually cheaper than 3rd Party Fire & Theft from the same insurer!