There are three main types of insurance cover, comprehensive, third party fire and theft and third party only. It is often worth getting quotes on different levels of cover and comparing the costs with the cover on offer.

Third Party

Third party car insurance is the bare minimum level of cover of car insurance required in the UK.

This cover essentially protects third parties (pedestrians or drivers) so they do not lose out financially should you injure them, or cause damage to their vehicle (not your own car)

Some car insurance companies are no longer willing to offer this level of insurance. As the name suggests there is no protection for fire or theft with this cover and therefore it is normally purchased by drivers on a strict budget or with a low value car.

Sometimes this makes sense for younger drivers. When you consider that if a car costs just £500 and is stolen, although there might be no compensation to the younger driver for the loss of a car, their no claims bonus will be retained. A single year of no claims bonus might be more valuable than the combined excess and premium costs of buying third party fire and theft cover initially.

Essentially third party protection covers you for:

• Liability for injuring other people (including passengers)
• Liability for damage to property (not your own)
• Liability arising from using a caravan / trailer, while attached to your car
• Liability of passengers for accidents caused by them

Third Party Fire and Theft Cover

This protection offers the fire and theft cover in addition to the legal requirement of third party insurance.

The fire and theft cover will include an excess (commonly £100) which is payable in the event of making a claim. Please note that claims can also affect your no claims bonus and therefore next time you come to insure your car the cost of your insurance may increase.

Should your car be stolen or damaged due to theft or attempted theft you are able to make a claim. However, you will need to report the theft to the police.

Fire claims often occur directly as a result from theft but sometimes from vandalism or mechanical breakdown.

Comprehensive cover

Comprehensive cover includes the same level of protection as Third party fire and theft but in addition includes protection for your car against accidental damage.

Accidental damage is that done to the insured's vehicle including malicious damage, and windscreen damage. Our policies also include extra cover such as personal accident cover, European driving cover and courtesy cars.

The ability to drive other cars is an extension that can be found on some policies. It is a misconception that this cover is only available on comprehensive cover. Often third party policies will also cover the policyholder to drive other cars on a third party basis.

The 'driving other cars extension' has eligibility criteria that differ from insurer to insurer but typically age and occupation are used to assess whether a driver qualifies.

It is important that you understand clearly the restrictions that apply to this cover. You should refer to your policy documents for these.