What types of cover can I get?

Car insurance is a legal requirement in the UK, which means it is against the law to drive without the protection of a car insurance policy. You must carry your certificate of insurance with you at all times when you are on the road, as this will provide evidence of your cover should it be required.

UK car insurance policies can be divided into three main types:

• third party
• third party, fire and theft
• comprehensive

Individual insurance policies will differ between providers. Some are more expensive, but include certain benefits, while others offer to add them on for an extra fee. Also, some policies will only cover general car users, whereas others will cover specialist drivers

Third party insurance is the minimum level of car insurance required by law in the UK. It is the cheapest option and only covers you for liabilities to other vehicles if you cause an accident. It usually covers:

• injuries to other people, including passengers
• damage to other people's property
• accidents caused by your passengers
• liability arising from the use of a caravan or trailer, while attached to the car

Third party fire and theft insurance works like third party but includes protection for your vehicle against any losses through fire and theft. It usually covers:

• injuries to other people, including passengers
• damage to other people's property
• accidents caused by your accidents
• liability arising from the use of a caravan or trailer, while attached to the car
• loss in the event of theft of your vehicle
• damage to your vehicle in the event of fire

Comprehensive cover is the fullest level of cover that you can get for your car and any damages and injuries arising from it. It usually gives you ‘all risks’ protection but comprehensive policies differ a lot from provider to provider, so it’s advisable to check the policy details.

Some insurance policies cover accidental and windscreen damage, personal belongings and audio equipments or a courtesy car, but others keep premiums low by sticking to the basics. Comprehensive cover is recommended for cars over £1000 in value and is essential for cars worth over £5000. New cars bought on finance have to have fully comprehensive insurance. Usually it covers:

• injuries to other people, including passengers
• damage to other people's property
• accidents caused by your passengers
• liability arising from the use of a caravan or trailer, while attached to the car
• fire damage and / or theft of your vehicle
• accidental damage to your own car
• personal accident benefit - certain amounts are paid in the event of the death or permanent disablement of the policyholder (and sometimes his or her spouse or family member)
• medical expenses necessarily incurred, up to a stated limit
• loss of or damage to personal belongings in the insured car, up to a stated limit

For piece of mind you can add extras to your policy such as breakdown recovery, legal cover, a replacement car, protected no claims bonus and payment protection. Some car insurers include these extras in their policies, so sometimes more expensive cover works out cheaper if you already know what extra benefits you want. Read up more about car insurance extras