Types of car insurance

There are three basic levels of car insurance available in the UK

Third party car insurance

This is the minimum insurance cover you can have that allows you to drive on the road legally. Third Party Insurance will only cover damage that you do to someone else's property or persons. If your car catches fire or is stolen you will receive nothing from the insurance company.

Third party fire and theft car insurance

This is slightly better cover than Third Party. You are covered for any damage that you do to others or their property but if your car is stolen or catches fire you will also receive payment. This type of cover is often used by young people with little or no 'no claim discount' to keep costs down. Generally it is cheaper than fully comprehensive cover but it is always worth checking as often premiums can be very similar.

Fully comprehensive car insurance

This covers everything that the above policies cover but also covers you for any damage that you do to your own vehicle. If you are covering a newish car then this is the only cover you should really consider. See our guide to reducing the premiums for car insurance and shop around for car insurance using the menu on the right.