Types of car insurance: Which one do you need?

Car insurance is one of the biggest motoring-related expenses you have to shell out for, and the different types of cover can appear a little confusing. Keep reading to find out more about car insurance and which cover is right for you.

The main types of car insurance in the UK are:

• Third party
• Third party, fire and theft
• Fully comprehensive

Keep reading to find out all you need to know about car insurance in the UK and which level of cover you need.

Third party insurance

Third party car insurance is the most basic level of cover you can get and still be legal to drive. In theory, this should also be the cheapest option, however, this isn’t always the case.

Third-party insurance offers you the least protection if your car is damaged or stolen, in fact, it only really pays out for damage done to other people’s vehicles or property.

What does it cover?

• Damage to other people’s vehicle or property
• Any injuries you’ve caused to others
• Injuries to your passengers

What doesn’t it cover?

• Your own injuries
• Accidental damage to your own car

Taking out third party insurance can be risky because if your car is stolen or damaged you won’t get any money back for it. If someone else hits your car, then their insurance will pay for the damage.

Third-party, fire and theft insurance

Third-party, fire and theft cover offers all the protection of a third party policy, so any damage you cause to other people’s property is covered.

As the name suggests, this level of cover includes protection for fire damage and the cost of replacement if your car is stolen.

What does it cover?

• Damage to other people’s vehicle or property
• Any injuries you’ve caused to others
• Injuries to passengers
• Damage caused by fire, including attempted arson
• Cost of replacement if your car is stolen

What doesn’t it cover?

• Your own injuries
• Accidental damage to your own car

You do get more protection with third-party, fire and theft, however, you still have no protection if you’re involved in an accident that is your fault.

Fully comprehensive car insurance

Fully comprehensive insurance offers the best level of protection in the event of an accident. It may cost a bit more but it could save you a fortune if the worst should happen.

Comprehensive cover will pay out for accidental damage to your own car, even if it was your own fault. You also get all the same cover as you get with third-party, fire and theft.

What does it cover?

• Damage to other people’s vehicle or property
• Any injuries you’ve caused to others
• Injuries to passengers
• Damage caused by fire, including attempted arson
• Cost of replacement if your car is stolen
• Accidental damage, even if it was your own fault

What doesn’t it cover?

• Breakdown cover
• Windscreen protection

Some policies can have things like breakdown or windscreen cover added optionally. It’s worth shopping around for the best prices because sometimes getting breakdown cover separately can work out cheaper.

Are there any other types of car insurance?

There are a few different types of specialist car insurance that offer specific benefits depending on your car and situation.

Classic car insurance

If you own a classic car, the chances are you don’t drive it every day. This is where classic car insurance comes in, possibly offering cheaper cover than a traditional policy.

Any car over 15 years old usually falls into the classic category, however, this will vary between providers.

If you aren’t driving your classic on the road, you can get laid-up cover. This will cover your car if it’s damaged in a fire or stolen, however you can’t drive the car and it must be registered as SORN with the DVLA.

Telematics cover

Telematics cover can be a good option for new drivers who are looking to reduce their cover in the first few years on the road.

These are also referred to as ‘black box’ policies and involve having a tracker fitted to your car that monitors speed, acceleration and braking force.

Some policies offer discounts for safe driving, and some can increase your premiums or even cancel your policy if your driving is considered dangerous.

Learner driver insurance

Learner driver cover is great for those looking to hone their driving skills outside of their professional driving lessons.

You still need to have a qualified driver in the car with you who is over 21 years old and has held their licence for at least three years.

Track day insurance

Your normal insurance policy won’t cover you to use your car on the racetrack or for any form of motorsport. You can buy separate motorsport insurance to cover you if your car gets damaged while you’re hooning around the track.

What about optional extras?

You can pay for optional extras on top of your standard cover, and sometimes they can save you a lot of time and hassle.

You can add a courtesy car in the event that your car is taken off the road for an extended period of time. You can also add breakdown cover and windscreen protection.

You need to weigh up the cost of these extras against the benefit of having them. In some cases, buying breakdown cover separately can work out cheaper, for example.

Car insurance FAQs

What’s the best type of car insurance?

Fully comprehensive car insurance offers the best level of protection. It may be more expensive, however, it can save you a fortune in the event of an accident.

What’s the cheapest type of car insurance?

Third-party cover will usually be the cheapest, however, it also offers the least cover for you. If your car is stolen, it’ll be a total loss to you and you won’t get anything back for accidental damage.

How do I know what my car insurance covers?

The details of your cover will be written into your policy documents.

Does the type of car affect insurance rates?

The type of car you have will have a big impact on your insurance premium. Usually, the more expensive your car, the more it’ll cost to insure. The performance levels of your car will also affect your premium.

You can find the cheapest cars to insure through carwow

Is car insurance a legal requirement?

You legally have to have car insurance to drive on the road in the UK. The fines for not having coverage can be huge, and you can get six points on your licence.

What details do I need to insure my car?

You’ll need your car’s registration number and the details of when you bought it. You’ll also need to provide your address, where the car is kept overnight, how many miles you drive per year and what you use the car for.

You’ll need to provide your driving history as well. The insurance company will ask you how long you’ve been driving if you have any points on your licence and whether or not you’ve been in an accident before.

Do I need to insure a car that’s off the road?

If your car is declared off the road and parked on private property, it doesn’t need to be insured.

You won’t be able to drive the car unless you insure it, and the car can’t be parked on a public road either.

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