Types of car insurance

Allie Morgan
Allie Morgan
Updated 13 October 2022  | 3 mins read

Key points

  • There are specialist policies available so you can find the cover to suit you
  • Third party cover isn’t always the cheapest option
  • Shop around to find the right policy for you

Which type of car insurance is cheapest?

You may think that third party only cover would be the cheapest option to go for. But actually, it can end up being the most expensive.

In 2021, our comprehensive car insurance customers paid £458 while third party only customers paid £857.

The price of your car insurance will depend on factors such as the type of car you have, your location, and whether you’ve claimed on your insurance in the past.

Which type is right for me?

The type of insurance that’s right for you will be the one that offers the amount of cover you need.

If you want the highest level of protection, comprehensive cover will be your first choice, whereas if you’re happy with the bare minimum, third party could be the best option for you.

What other types of car insurance are there?

There are plenty of car insurance options available, for everything that life throws at you. Whether you’re getting on the road for the first time, or buying that classic car you’ve always dreamed of, there are specialist insurance options available.

Learner

Learner car insurance - or provisional insurance - covers you while you’re learning to drive in your own car, or a family member’s.

You won’t need it if you’re learning with a professional instructor, but while you’re out and about with your ‘L’ plates on your own car, learner insurance will cover you.

Black-box

While standard car insurance can be pricey for new drivers, a black-box policy can be a cost-effective option.

Your car will be fitted with a black box which will monitor your driving skills. When an insurer can see that you’re taking care on the road, they’ll be more likely to give you a fair price when it comes to your insurance.

Short-term

Short-term car insurance can help you if you only need a policy to cover you for a few hours, days, or months.

You won’t hurt your no-claims bonus on your annual policy if you make a claim on your short-term policy.

Pay as you go

With pay as you go insurance, you’ll be paying for the mileage you cover, which makes it a great option if you don’t travel far.

If you’re a student who only uses your car occasionally, or you often stay within your local area, pay as you go car insurance could be the right fit for you.

Business

Business car insurance is a requirement if you use your car to visit clients, or travel between different sites. Your commute will typically be covered under a standard car insurance policy.

If you have an accident while you’re travelling for work, and you don’t have business insurance, you won’t be covered.

Classic car

A classic car can be a great investment, so getting the right cover in place to protect it is key.

Classic car cover has its own features such as wedding hire and a limited mileage discount to give you a tailored policy.