Types of car insurance cover

Keeping your vehicle insured is one of the yearly tasks of owning a car, but it can be hard to figure out what each type of cover actually means, and what it protects you against.

In this guide, we'll explain the three main types of UK car insurance and what each one covers you for, as well as some other helpful car insurance advice.

What are the different types of car insurance?

The three main car insurance types are Third Party, Third Party, Fire and Theft (TPFT), and Comprehensive. Here's a summary of each:

Third Party - this is the minimum legal requirement for UK drivers. It covers you if you damage someone else's car or cause injury to another person, but it won't cover personal injury or damage to your own car.

Third Party, Fire, and Theft (TPFT) - as the name suggests, this gives the same cover as a third-party policy, while also protecting you if your car is stolen or fire-damaged.

Comprehensive - also referred to as 'fully comp,' this cover gives you the highest level of protection.

What is third party car insurance?

Third party insurance is the lowest level of cover available, and the legal minimum requirement for UK drivers. As the name suggests, third party insurance covers damage to other people, but won't cover your own car or yourself.

Third party insurance usually covers:

• Damage to someone else's car
• Damage to someone else's property
• Injury you cause to someone else, including other drivers, pedestrians, and animals
• Injury to your passenger(s)
• Accidents caused by a passenger or a named driver on your policy

Third party insurance doesn't cover:

• Injury to yourself
• Damage to your own car
• The cost to replace your car if it's stolen or destroyed by fire

Any injuries to you or damage to your own car won't be covered, and you'll have to cover the cost yourself.

What is third party, fire, and theft car insurance?

A third party, fire, and theft policy covers everything that a third-party policy does, with the same exclusions of personal injury and damage to your own car. However, this policy will also cover you for damage caused by a fire (both accidental and malicious), damage obtained during an attempted theft, and if your car is stolen.

Third party, fire, and theft insurance usually covers:

• Damage to someone else's car
• Damage to someone else's property
• Injury you cause to someone else, including other drivers, pedestrians, and animals
• Injury to your passenger(s)
• Accidents caused by a passenger or a named driver on your policy
• Fire damage*
• Theft*
• Damage caused by attempted theft*

*After you pay your excess

Third party, fire, and theft insurance won't cover:

• Injury to yourself
• Damage to your own car (excluding fire damage and damage obtained during an attempted theft)

While this type of insurance will protect you against fire damage and theft, you won't be covered for accidental damage.

What is comprehensive car insurance?

A comprehensive policy (also known as fully comprehensive or fully comp) is the highest level of insurance available. It covers everything in the TPFT policy, but also any personal injuries or damage to your own car.

Fully comprehensive insurance usually covers:

• Damage to someone else's car or property
• Injury you cause to someone else, including other drivers, pedestrians, and animals
• Injury to your passenger(s)
• Fire damage*
• Theft*
• Damage caused by attempted theft*
• Scratches*
• Chips*
• Vandalism and deliberate damage*
• Accidental damage to your car*

*After you pay your excess

Fully comprehensive policies can vary - there are many optional extras that you can add to this cover, but they likely won't come as standard and you'll have to pay extra for them.

Here are some examples of car insurance optional extras you might find when taking out a fully comprehensive policy:

• Courtesy car cover
• Windscreen cover
• Replacement key cover
• Child car seat cover
• Misfuelling
• Breakdown cover
• Uninsured driver protection
• No claims discount protection
• Motor legal protection (this covers the legal fees resulting from a claim)
• Cover for personal belongings left in your car, like a sat nav or handbag
• Cover for medical costs (up to a set amount)
• Comprehensive cover for driving outside the UK

When choosing optional extras, think about what you're willing to pay for, and what would be most useful in the event of an accident or if you needed to make a claim. You should also consider value for money - shop around and see if you can get things like breakdown cover or replacement keys for less than the additional cost to your premium.

What is voluntary excess? And what's the difference between voluntary and compulsory excess?

If you're involved in an accident, or something happens to your car and you make a claim on your insurance, you'll likely have to pay towards any repairs. This is called excess.

Your insurer will decide a set amount you have to contribute. This is compulsory excess. However, you may decide to pay more to reduce your premium. This is voluntary excess. You can adjust your voluntary excess when you're taking out your insurance.

Any additional cost beyond your combined voluntary and compulsory excess is covered by your insurer. For example, say you make a claim for £1000 worth of damage. Your compulsory excess (what the insurer has decided you have to pay) is £200, and your voluntary excess (what you've volunteered to pay) is £100, totalling a payment by you of £300. Your insurer will then cover the remaining £700.

Other types of car insurance

Third party, TPFT, and fully comprehensive are the three main types of car insurance. However, there are some less common, more specialised policies that might be more suitable for you.

Telematics insurance/black box car insurance

This policy type is popular with young drivers, since it can often reduce your premium. Your insurer will fit a telematic device (or black box) to your car to gather driving data such as your braking, speed, acceleration, and generally how safe you are as a driver. Calm and safe driving will often reduce your premium.

The exact requirements and metrics will vary from policy to policy, and some insurers may also impose time restrictions - for example, driving after 10pm could lower your score.

Classic car insurance

Classic car insurance (also known as vintage car insurance or heritage car insurance) is a specialist policy type for older cars. It takes into consideration that classic cars are generally well-cared for and used primarily for leisure.

Insurers that offer these policies tend to be more knowledgeable about vintage cars, and so can tailor policies to suit each individual.

European driving insurance

If you're planning to drive in Europe, you may need a different insurance policy. While many UK policies include European driving, either as standard or as an optional extra, it's likely to only be third party cover, so you may want to up this coverage to ensure you're protected. You can usually increase your European coverage with your current insurer for a small fee.

You should also check how long you're covered for - UK car insurance with European cover typically covers you for between 30 and 90 days, but if you're planning to stay longer you may need to alter your policy.

Remember: This is a general guide to help you understand the typical differences between car insurance policies. Every insurer is different, and you should always carefully check the terms and conditions of each when you're taking out a policy. If you're unsure about the terms of your policy, or what you're covered for, speak directly to your insurer.