What are the different types of car insurance?

Author Name – Ben Garner

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When applying for car insurance, you will be asked to choose from one of three policies, each providing different levels of cover. In this article, we’ll discuss the main differences between each policy level to help you decide which cover is best for you.


What is Third Party car insurance?

Third party car insurance is the base level of insurance, making it a minimum legal requirement for any driver. Third party insurance will only cover damage or injuries to third parties, which includes injuries to other people, damage to third parties' property, accidents by a named driver on your policy and any passengers injured in an accident.

Third party car insurance does not cover any repairs for your own vehicle, meaning if you crash you will have to pay for repairs if your car isn’t written off. This might leave you paying for new brakes, tyres or steering and suspension.


What is Third Party, Fire and Theft car insurance?

Third part, fire and theft (TPFT) provides the same policies as third party, but with some additional cover. You will be able to claim on this insurance if your car is stolen or damaged by fire. This option is often cheaper than comprehensive cover, but still doesn’t provide insurance that covers you or your vehicle in the event of an accident.

It is worth noting that not every insurer provides TPFT cover, so you will want to check a comparison site before making any decisions. Popular comparison sights include GoCompare and Compare The Market, who’ll compare quotes through many different insurance companies, such as Admiral and Hastings Direct.


What is Comprehensive car insurance?

Comprehensive car insurance covers everything from the above policies, and more. Comprehensive cover will cover you and your car in the event of an accident. This is the most common policy for car insurance, as it protects you and any third parties in an accident or collision.

Some policies also cover the contents inside your car, such as a sat-nav. You will need to check this with the insurance provider, however, as some offer this only as an additional cost.


What’s the difference between compulsory and voluntary excess?

In the event of an insurance claim, the insurance company will require you to pay a pre-agreed amount of money towards the repair costs. This is known as an excess, and it is made up of compulsory and voluntary amounts. These are agreed upon before taking out an insurance policy.

Compulsory excess is determined by the insurance company that offers the policy. This is the amount that you must pay to them in the event of a claim. The compulsory excess tends to be higher for new drivers, due to the increased risk of an accident.

Voluntary excess is decided by the policyholder. This is the amount you will have to pay on top of compulsory excess in the event of a claim. Usually, if you choose to pay a higher voluntary excess then your overall insurance cost will be lower, but you will have to pay more money if you need to claim.


Can you drive in the UK without car insurance?

No, it is illegal to drive in the UK without any form of car insurance. As a minimum, you must have third party cover. However, comprehensive will ensure you are covered as well as any third parties in the event of an accident or theft.

Some cars are more expensive to insure than others, due to car insurance bands. To find out more about bands and see what band your car is in, click the button below.

Car Insurance Bands

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