Choosing the right car insurance can be a bit of a minefield, whether you’re a new driver or experienced motorist looking for the best deal. As it’s a legal requirement to drive in the UK, it’s important to understand the different types of cover so you can decide which car insurance is best for you.
What are the different types of car insurance?
There are 3 types of car insurance that can be tailored to fit your lifestyle and budget. These are:
Comprehensive car insurance
What does fully comprehensive car insurance cover?
Fully comprehensive car insurance is the most complete level of car insurance available. It will typically give you full financial protection for your car, as well as a personal injury safety net.
Most comprehensive policies also cover the damage to your own vehicle, something which isn’t typically included in the other types of insurance policy. Most comprehensive policies now don’t allow you to drive other people’s cars but please check your policy documents for confirmation.
Third party car insurance
What does third party car insurance cover?
Third party car insurance is the legal minimum cover you need on a car before you can drive it in the UK. It essentially means that if you have an accident which causes damage, only the third party and their property are covered. It also covers passengers that have been injured as a result of the policy holder’s driving.
It does not cover the cost of any damage to your own car. If you’re involved in an accident that isn’t your fault, the other driver’s insurance should pay the compensation owed to you.
Confused.com’s data shows that a comprehensive policy is often cheaper than third-party insurance because it shows the driver is willing to take less risk. But it’s important to remember that several factors impact how much you pay for your policy. So it’s still worth comparing quotes for comprehensive and third-party to see what’s best for you.
Third party fire & theft car insurance
What does third party fire and theft cover?
As the name suggests, third party fire and theft covers everything included in third parties but with the addition of covering your car if it’s unfortunately stolen, damaged or destroyed in a fire.
What factors will affect my car insurance quote?
The more cover you want, the more it will cost. There are certain factors regarding your lifestyle that could affect the cost of your premium:
- Age – As younger drivers are more inexperienced, they have to pay a hefty sum for their youth.
- Marital status – Married couples are seen as more stable and less prone to risky and dangerous driving, bringing down the price of their car insurance.
- Address – How densely populated and how safe your area is can affect your premium. Where you keep your car overnight also has an impact.
- Employment – People who drive for a living may be more likely to be involved in an accident. This means a HGV or delivery driver may face a higher cost than an office worker.
- Type of vehicle – Sports cars are not only bigger targets for car theft but also more likely to be in accidents due to their increased engine size. This makes them more expensive to insure.
- Driving history – Previous accidents, tickets and claims will influence future car insurance costs. Safer drivers can take advantage of their No Claims Discount to save money in the long run.
- Driving activity – The more miles you drive over a year, the more you’ll have to pay. Consider whether you use your car solely for leisure or whether you need to add business cover for your commutes to work.
- Annual mileage – The more you drive, the more risk you’ll be involved in an accident. This will be represented in your policy quote.
- Value of car – The more your car is worth, the higher your premium could be. This is because the car will cost more money to repair or replace and is likely to be a target for thieves.
How do I get the best deal on car insurance?
Once you’ve decided which type of cover is best for you, it’s time to shop around for the best quote. Cheaper does not always mean better so ensure the policy fits your needs.
The following tips can help you save some cash.
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Increase your voluntary excess
If you volunteer to pay towards the cost of any accidents or repairs, the cost of your overall premium will go down. Make sure you understand what car insurance excess is and that you can afford the amount you’re willing to pay.
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Secure your car
Fitting an immobiliser of approved alarm can reduce the cost of your motor insurance. While many new cars will already have these built in, it’s worth checking – and adding an extra layer of security if not – to save some cash.
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Protect your No Claims Bonus
Many policies now offer the chance to pay a small sum to protect the No Claims status you earn from being a safe driver. It’s a worthwhile cost that will help keep your premiums stay low year after year.
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Pay annually
Although it’s a lot to spend in one go, paying upfront could save you cash in the long run. Many insurance companies offer a slight discount for paying in full but make sure you have the funds to do this.
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Provide accurate mileage
When insurers calculate your quote, they take into account a number of different factors including the distance you are planning to travel over a year. Be as accurate as possible when it comes to giving this number and you could see your policy come down in price.
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Add named drivers
Adding another named driver could also help lower the cost of your policy, especially if they are more experienced. Adding younger and inexperienced drivers could have the opposite effect as they are considered higher risk.
The main driver must do the majority of the driving. If you have a friend or family member who wants to drive the car for a short period, it’s worth considering temporary car insurance.
Other car insurance options
It’s a legal requirement to have at least third party motor insurance. If you feel you aren’t getting value for money with your current deal, you might want to start looking elsewhere. Maybe temporary car insurance could be a good alternative while you organise your next annual policy?
Tempcover allows you to choose a temporary car insurance policy that suits your needs, ranging from one hour to 28 days. You can get a quote in under 2 minutes by following three simple steps:
- Fill in your details
- Get your quote
- Purchase your policy
If you’re looking to Tempcover It!, you’re likely to be accepted* if you are:
- Aged between 17 and 78 years old
- The holder of a UK or EU driving licence
- Have held your licence for at least 6 months (12 months for EU licence holder)
- Looking to insure a car valued between £800 and £65,000
Interested in fully comprehensive temporary car insurance while you choose the best annual policy. Get a quote today.
*Other Terms and Conditions apply.
Frequently Asked Questions
What is the best type of car insurance to get?
This depends on a number of circumstances including your budget, lifestyle and even where you live. There are three different levels of car insurance in the UK: comprehensive, third party, third party fire and theft.
What are the three main types of car insurance?
- Comprehensive
- Third party
- Third party fire and theft
What is the most popular type of car insurance?
According to a study by Forbes Advisor, nine in ten Brits have a comprehensive car insurance policy.
