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

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

CoveredNot Covered
Injuries to other peopleInjury to you
Damage to other carsDamage to or theft of your car
Damage to other propertyDamage 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

CoveredNot Covered
Injuries to other peopleInjury to you
Damage to other carsDamage to your car due to accident
Damage to other propertyDamage 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. A Comprehensive policy will be generally cover:

Comprehensive Insurance Coverage

CoveredNot 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, 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.

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Disclosure

The guidance on this site is based on our own analysis and is meant to help you identify options and narrow down your choices. We do not advise or tell you which product to buy; undertake your own due diligence before entering into any agreement. Read our full disclosure here.


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