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Types of UK Car Insurance
Car insurance policies are composed of different modules, each with its own cost and benefits to you. Motorists can select the components that are most important to them, so it’s important to understand what is being covered to construct the best package for you. While there are other add-ons available, here we will explain the typical features of the three main types of motor insurance, to help in your decision-making process.
Types of Car Insurance
Cost
To calculate your car insurance premiums for all three types of cover, use our UK car insurance calculator now!
Third Party
Third party is the most basic level of car insurance, and is the minimum level of cover required by UK law. This type of insurance will help protect you against costs resulting from injuries to other people and damage to other’s property (e.g., walls, cars, etc.)—where you are at fault.
Third Party insurance will not cover any damage to your own car or your own medical bills, if you are injured in an accident. You also cannot claim on Third Party insurance if your car is stolen. Third Party Insurance pays out to compensate a third party only (never to you).
You might imagine that Third Party insurance is cheaper than the other types, since it provides less cover. Interestingly, this is often not the case. Why? It seems that riskier drivers tend to take out Third Party insurance more often, so the insurance companies may assume you are a risky driver just because you are looking at Third Party only. ALWAYS check prices – you may find a higher level of coverage (i.e., Third Party, Fire and Theft or Comprehensive) for a comparable or even cheaper price.
Third Party Insurance Coverage
| Covered | Not Covered |
|---|---|
| Injuries to other people | Injury to you |
| Damage to other cars | Damage to or theft of your car |
| Damage to other property | Damage to or theft of your property |
Third Party, Fire and Theft
As you may guess, Third Party, Fire and Theft insurance includes the same Third Party coverage mentioned above, plus in addition you can claim for damage to your own car from fire or if your car is stolen.
This type of cover still does not protect against any injury to you or damage to your car from an accident. If you want that, you’ll need Comprehensive insurance.
Third Party, Fire and Theft Insurance Coverage
| Covered | Not Covered |
|---|---|
| Injuries to other people | Injury to you |
| Damage to other cars | Damage to your car due to accident |
| Damage to other property | Damage of your property due to accident |
| Damage to your car or property due to fire | |
| Theft of your car or property |
Comprehensive Insurance
Comprehensive insurance is the type of car insurance offering the most protection. In addition to including the coverage included in third party, fire and theft insurance, you are also covered for injury to yourself and damage to your own car in the case of an accident, or in some case other events like flood damage. A Comprehensive policy will be generally cover:
Comprehensive Insurance Coverage
| Covered | Not Covered |
|---|---|
| Injuries to you and other people | |
| Damage to your car and other cars (due to accident or fire) | |
| Damage to your and other's property (due to accident or fire) | |
| Theft of your car or property | |
| Repair/replace windscreen |
While comprehensive insurance may cost more each year (but often doesn’t), there are clearly added benefits. Choosing the right level of coverage for you will depend on your individual needs. Keep in mind that if you buy Third Party Only or Third Party, Fire and Theft, then in the case of an accident that is your fault, you will have to pay for all of your own medical bills and car repair costs.
How Much Does Each Type Cost?
While it may come as a surprise given the differences in what you are and aren’t covered for, Comprehensive is often the cheapest level of car insurance for popular vehicles—especially for younger drivers.
There could be a number of reasons for this—insurers might prefer more risk averse drivers, especially at a younger age, and opting for the highest level of cover may suggest a driver is less likely to take unnecessary risk. Also, there seems to be more insurers offering Comprehensive vs other insurance types, making the market more competitive and driving prices down (we received 56 Comprehensive quotes compared to 33 TPO quotes for a 2015 Vauxhall Corsa, for example).
| Vehicle | Coverage Type | Cost |
|---|---|---|
| Ford Fiesta | Comprehensive | £757 |
| TPFT | £1,001 | |
| TPO | £1,216 | |
| Ford Focus | Comprehensive | £935 |
| TPFT | £1,246 | |
| TPO | £1,158 | |
| Volkswagen Golf | Comprehensive | £1,034 |
| TPFT | £1,464 | |
| TPO | £1,633 | |
| Vauxhall Corsa | Comprehensive | £732 |
| TPFT | £859 | |
| TPO | £1,021 |
Interestingly, uSwitch research suggests that as you get older and more experienced behind the wheel the level of cover you select has less impact on price, with less than a 4% difference in price between the 3 coverage levels for drivers with over 15 years of driving experience.
Our sample driver was a 35 year old living in North West London with 10+ years of driving experience, with no prior claims or convictions. Keep in mind that variables such as your occupation, location and mileage per year will impact the cost of your policy.
What Next?
Once you've decided which type of car insurance is best for you, you'll need to pick a car insurance company. For information on finding the best insurance company for your needs, see our article on best, cheap car insurance companies.