There are various levels of cover to suit different drivers. With a few limitations such as the value of your car, you could buy any of them and be legally insured to drive.

However, before you make a decision to go for the cheapest cover, it's important to understand exactly what you're buying. There are many differences which could leave you in a lot of trouble if you come to rely on something that you've not got. For instance, if you think you are entitled to a courtesy car but aren't then you could face a large bill from the garage to keep you on the road following an accident.

Be aware that different insurance companies will have different levels of cover and that these are only a guide to help you decide which is best for you.

Policies

Third party only insurance (TPO)

Third party only insurance (TPO) is the bare minimum requirement to drive on public roads. If you have an accident, your car insurance company will pay for third party damage only. You will have to pay for your own damage.

Third party fire and theft insurance (TPF&T)

Third party fire and theft insurance (TPF&T) is just like the TPO insurance policy above, but if your car is stolen or damaged / destroyed in a fire through no purposeful fault of your own, the car insurance company will cover you.

Comprehensive

Comprehensive covers everything in the two insurance policies outlined above and covers your car as well as the third party car for accidental damage. This will involve you paying the first part of each claim which is called the excess. The excess is something you have some control over. The excess is split into compulsory and voluntary excess.

Excesses

Compulsory excess

Compulsory excess is the amount you are forced to pay on your policy by your insurer when you make a claim. It may be higher if you are a learner driver, new driver or driver with a number of previous claims or convictions.

Voluntary excess

Voluntary excess is a price you choose yourself. It is the first part of the payment against any claim you make. The voluntary excess can help reduce the premium you pay. The higher the excess (amount you agree to pay towards each claim following an accident) the lower your premium, but the more you'll get stung in the pocket before your insurance company pays out and of course, if you don't make a claim, you win.

For example,

• If my excess were £100 my premium could be £259
• If my excess were £250 my premium could be £233
• If my excess were £350 my premium could be £222

There are various add-ons or ancillaries that most car insurance companies offer with their comprehensive cover to make it different from the others. The Gocompare.com unique star ratings should help you identify which insurance company offers what, so you can make up your mind.

Exclusions

Before buying your policy another section to check is the exclusions. This is usually found within the policy wording and may be slightly hidden.

Generally, these exclusions are things over which you have little or no control - such as riots, war, or pressure waves caused by aircraft travelling at the speed of sound or faster (honest!).

There are, however, some exclusions which you should pay attention to. If you use your car for something other than what you've said - e.g. if you've said you'll only use it for social and you have an accident whilst commuting. You'll also not be covered if you use your car for track days, off road, on beaches, etc. So ensure you know what you're insured for before making your decision.

If you do use your car something that would make your insurance company sweat and you are not sure if you are covered, check first.