What level of coverage should I go for?

You have 3 levels of cover available to you, they are:

Third part only (TPO)
Third party fire and theft (TPFT)
Fully comprehensive (FC)

If you have a cheap car worth only a few hundred pounds then it’s often more cost effective to opt for third party only insurance. This is due to the fact that the extra cost of TPFT & FC insurance is often worth more than the value of the car. However if you car is worth a bob or two (say, over a £1000) then it’s usually worth opting for a higher level of cover. If your car is stolen or burnt out and you only have TPO, then you’ll receive nothing from your insurance company which could cost you thousands, depending o the value of your car. FC insurance goes one step further and will pay to repair or replace your car if you’re found to be responsible in the event of an accident.

Each policy is different, but the simple summaries below should provide a useful overview of the main types of UK car insurance.

Third party car insurance policies

All UK drivers are legal required to have at least this level of cover because it protects other people and property from the damage that you could cause. This covers:

Liability for injuries to other people, including passengers.
Liability for damage to other people’s property.
Liability of passengers for accidents caused by them.
Liability arising from the use of a caravan or trailer, while attached to the car.
This level suits drivers with cars that aren’t very valuable as its often cheaper to replace the car than pay the excess and additional insurance costs.

Third party fire and theft car insurance policies

This offers the same level as third party but also covers you in the event of your car being stolen or involved in a fire.

Fully comprehensive car insurance policies

This type of insurance provides the same cover as the last two levels but also cover you for:

Accidental damage to your own car. There may be an “excess” – part of the cost of the claim for which you are responsible.
A personal accident benefit. Certain amounts are paid in the event of the death or specific permanent disablement of the policyholder – and sometimes his or her spouse or family member.
Medical expenses necessarily incurred, up to a stated limit.
Loss of or damage to personal effects in the car, up to a stated limit.