What are the Different Types of Car Insurance?

Whether you’ve just passed your test, or you have been driving for what feels like all your life, the one thing we all dread is renewing our car insurance. As you just never know what surprises you might get in terms of the cost! There are a few different types of car insurance, and it’s important to understand which one is best for your needs.

When you finally understand what type of cover you need, the world of car insurance becomes a lot simpler.

What are the three different types of car insurance policies?

• Fully comprehensive.
• Third party and theft.
• Third party.

Each policy is going to offer different levels of cover. Third party is the legal minimum level of insurance you can have in the UK, and it gives the most limited protection. So, if you know you need the most extensive type of cover, fully comprehensive car insurance is what you’re looking for.

What is fully comprehensive car insurance?

Ah, the greatest level of cover money can buy! This will include cover for damage to your own car as well as any damaged suffered from others, such as fire, theft and accidents.

Historically it was the most expensive cover. Due to car insurance prices soaring, young drivers tend to avoid this cover and they tend to go for third party only cover which has pushed those prices up. Good news is, it generally works out better to have fully comp premiums!

BE AWARE! Not all fully comprehensive policies are going to offer the policy holder the same things, so be sure to read the terms and conditions of each policy and match the best to your needs.

What is third party and theft car insurance?

While this policy offers the same cover as third party only, you do have the added benefit of loss or damage protection if your car is damaged by fire or stolen. This is a good idea if you have a cheaper vehicle, but as mentioned it’s not likely to be the cheapest type of insurance.

Do your research and read the terms and conditions! Make sure this is the type of cover you want to go for.

What is third party car insurance?

If you own a car and want to drive it on public roads, you need to have a minimum of third-party car insurance cover. After all, it is the law! A very basic cover, third party car insurance will pay for the damage caused to other people’s property, or compensation or costs related to injuries they sustain, in an incident adjudged to be the fault of the covered driver.

It pays out if you caused an accident and covers the other driver and passengers. Your passengers are also covered, meaning the only person that’s not covered is you. Again, these policies are more suited to those who drive cheaper cars, rather than someone who drives a brand-new car. But like third party fire and theft, it’s not always the cheapest!

When choosing a policy, we can’t stress enough the importance of reading the providers terms and conditions! As they are all going to have different offerings and limitations.

Find out more about car insurance cover and their excess rates here!