Types of car insurance
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
What are the levels of car insurance?
When you’re buying car insurance, you’ll notice there are different levels of cover available at different prices.
The level of cover you’ll need will depend on what you’d like to be protected for.
Comprehensive
Comprehensive car insurance offers you the most protection, as it covers you for so many eventualities.
With fully comp car insurance, you could find yourself covered for:
- Repairs to your car if you’re in an accident that’s your fault
- Any injuries you cause to yourself, passengers, or other drivers if you’re at fault
- Theft of personal contents
- Fire damage
Third party, fire and theft
Third party, fire and theft is seen as the middle tier of car insurance.
While you won’t have as much cover as you would have with comprehensive insurance, you’ll still be protected for:
- Damage to another person’s car or property
- Injuries you may cause to others
- Fire damage
- Theft
Third party, fire and theft car insurance >
Third party only
Third party only is the most basic form of car insurance. You won’t be covered for any damages to your own car or any repairs that you’ll need. You will, however, be covered for:
- Accidental damages to another person’s car or property
- Injuries you may cause to another person
Third party only car insurance >
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 December 2021, our comprehensive car insurance customers paid £549 while third party only customers paid £920[1].
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.
Car insurance guides and articles
[1]The average cost of annual car insurance by policy type purchased in December 2021 through GoCompare. For all types it was £561.20. For comprehensive it was £549.55. For third party fire and theft it was £734.20. For third party only was £920.58.