Third party car insurance policies

This type of policy is a legal requirement in the UK and protects other people and property from the damage that you and your car might cause. Third party insurance policies will cover you for:

• Liability for injuries occurring to other people. This includes passengers.


• Liability for damage to other people's property.


• Liability arising from the towing of a caravan or trailer attached to the insured vehicle.


• Liability of passengers for accidents caused by them.

This is perhaps the best type of insurance for people with cars that are worth very little. As cheap cars are easier to replace it might be more cost-effective to take out minimum insurance rather than invest money in an insurance product that you can never benefit from.

Third party fire and theft car insurance policies

This is a step up from third party insurance as it not only covers you for liabilities but also your own car for damages that might occur during incidents of fire or theft.

If your car is not parked in a garage or private driveway at night then theft cover might be excluded or restricted by certain conditions.

Fully comprehensive car insurance policies

Sometimes referred to simply as 'comprehensive' cover or colloquially as 'fully comp', this type of insurance provides additional cover to third party. As well as being protected from liability, fire and theft you will also receive windscreen cover, personal accident cover as well as cover for car audio equipment and personal belongings.

In addition to the cover provided by the lesser UK car insurance policies comprehensive cover also provides:

• Accidental damage to your own car.


• Personal accident cover. Payments are made in the event of the death or disablement of the policyholder and in some cases may extend to their family.


• Loss or damage to personal possessions up to a specified amount.


• Medical expenses up to a stated limit.

If you are buying a new car using finance such as a loan or a credit agreement then it is pertinent that you take out a fully comprehensive insurance cover. Some financial lenders will insist on it but it is solely for your own benefit; imagine continuing to make payments for years on a car that has been stolen.

Uninsured loss recovery

This is an optional extra for UK car insurance policies that will protect you if you happen to have an accident with a driver who is uninsured. A normal comprehensive policy would pay for any damage caused to your vehicle but would leave you lacking in other areas. Uninsured loss recovery will recompense you for any expenses you would incur in such an occurrence without the need for a gruelling court battle against the offending driver.