What are the different types of car insurance?

4x4 in an Autumn woodland area

Knowing the different types of car insurances that are available can help when you are deciding on what level of cover is best for you and your new car. We’ve all heard the words, third party and comprehensive thrown about but what do they actually mean for you? 

If you are still unsure about what car insurance is best for you there are many comparison sites online that will compare several different quotes and help you find the best policy that suits you and your driving needs.

There are three main types of insurance 

  • Third-Party – This is the minimum level of cover you need by law to drive a car. You may think this would work out the cheapest option but that isn’t always the case. This level of cover protects other drivers and damage to their car but does not include damage to your own car. 
  • Third-Party Fire & Theft – This covers everything that Third-Party covers but also includes fire & theft of your own car. This can be both accidental fire and also arson. This cover is good if you are looking for the minimum cover but live in an area with a high crime rate. It is important to note that if you are looking to claim on your insurance for fire damage or theft there will be a compulsory and voluntary excess that you will need to pay. 
  • Fully Comprehensive – This is the highest level of car insurance that you can obtain and is a popular choice among car owners. Fully Comprehensive covers both yourself and other drivers against –
  • Damage to someone else’s car.
  • Injury that may be caused to another driver.
  • Injury caused to your passengers.
  • Fire damage.
  • Theft.
  • Chips/scratches.
  • Malicious damage.
  • Accidental damage. 

Not all fully comprehensive policies will cover you for extras. Although many insurers will add these onto your policy for an extra fee. This include – 

  • Breakdown cover.
  • Personal accident cover. 
  • Motor legal protection.
  • Courtesy car.
  • No claims discount protection.
  • Windscreen cover.
  • Lost keys cover. 

Telematics Insurance

This is a relatively new and popular choice amongst new drivers and can help with bringing the cost of their insurance down. It is sometimes called “black box” insurance. A device is fitted into the car and monitors the drivers driving. If they can prove that they are a safe driver this can lower the cost of their policy. 

What affects the cost of your car insurance?

Many factors come into play when the cost of your insurance is being calculated. Technically the higher the risk factor, the higher the insurance. 

  • Age – Younger drivers typically cost more to insure. 
  • Previous driving experience – New drivers have less experience ‘on the road’ so therefore are more costly to insure. The longer you drive the cheaper your insurance becomes. If you have previous driving convictions this will also increase the cost. 
  • The vehicle you are insuring – The bigger the engine the more you will pay. 
  • How many miles you drive in a year – Obviously if you are driving more, you are at more risk for an accident, therefore your policy may be more expensive. 

Can a Provisional driver get car insurance? 

Yes. As long as they always have a driver who has held their full licence for over three years with them, many insurance companies offer insurance for provisional drivers. These policies are typically quite expensive but can be great so that a learner can get additional driving expensive outside of their normal driving lessons. 

If you are still unsure about what car insurance is best for you there are many comparison sites online that will compare several different quotes and help you find the best policy that suits you and your driving needs. 

Save Money on Your Car Insurance Today

Do you currently have car insurance?

YES NO
2 Shares:
Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like