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Car Insurance

If you’re one of the millions of motorists on Britain’s roads, you’ll know that it’s illegal to drive without some form of car insurance. But when searching for the right car insurance policy for you, it’s important to understand what policies are available, and this will all depend on your individual circumstances.

car insurance is a very competitive market, and shopping around really can save you money. But before you jump in and start making those savings, it’s important that you work out what cover you need, and for how much. Our handy car insurance guide will help point you in the right direction.

When searching for a car insurance policy, always bear in mind:

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• How much cover you want
• How much you can afford
• How many miles you drive
• How valuable your vehicle is

What insurance types are out there?

There are two different types of car insurance policy, Third Party and Fully Comprehensive.

Third party

Third party insurance is the minimum level of insurance you can have to drive a vehicle legally in the UK. If you have an accident, Third Party will only cover injury to the other driver and damage to their vehicle. It will not cover damage to you or your vehicle.

Pros of Third Party

• It is cheaper than a Fully Comprehensive policy and is suitable for those who cannot afford it, such as young drivers, those who drive occasionally or have little or no no-claims bonuses
• If you have an older and less valuable car, it could make more financial sense to take out Third Party – especially if a repair to your car is worth more than the car itself.

Cons of Third Party

• It does not cover any damage to you or your vehicle
• It does not cover theft of your vehicle or damage to it by fire unless you take out Third Party Fire and Theft (TPFT).
• If your car is above £5,000 you can’t get a Third Party policy.

Fully comprehensive

A Fully Comprehensive policy is the most complete form of car insurance. It covers both you and others for damage to your or their vehicle, no matter whose fault it is. It also covers you for theft and fire damage.

Pros of Fully Comprehensive

• It will pay for the damage to both you and your vehicle, as well as the damage to other parties.
• If you have a valuable car, you’d be a fool not have Fully Comprehensive
• Whoever’s fault the accident is, you won’t have to pick up the repair bill
• Cons of Fully Comprehensive
• It is more expensive than Third Party insurance
• Not all Fully Comprehensive policies are the same. Many offer different terms and conditions, perks and bonuses.
• If you have a car that isn’t very valuable it might not make financial sense if your premium is high

Now you understand what car insurance is, why not make the next step and switch?

What to do next

• Why switch car insurance?
• Read this car insurance checklist
• Compare car insurance now