A simples guide

Choosing the right type of car insurance

So you’ve purchased a new car, nice. Of course now you’ve got to make sure it’s insured. Sometimes insurance can be made to sound much more complicated than it is. Here we’ll explain quickly what’s what when it comes to policies, and give you an idea what each might cost.

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What are the options?

With car insurance, you have three options.

Comprehensive: Of all the policies sold through comparethemarket.com, over 90% of the policies issued, were for comprehensive cover. Comprehensive policies offer the highest level of car insurance protection available.

In the event of an accident, it covers:
- You and your car
- Other drivers and their cars
- Any other property damaged (for example if you hit somebody’s garden wall)
It also covers:
- Malicious damage and vandalism
- Damage caused by fire
- Loss or damage caused by theft or attempted theft.

Third Party Insurance: Third party cover is the legal minimum requirement to be able to drive on our roads. Third party cover only covers damage to other people or their car in the event that you cause an accident.

Third Party Fire and Theft: Third Party Fire and Theft insurance is the same as Third Party insurance but now also covers your car if it is stolen or damaged by a fire.

How does it impact cost?

Now you’d be forgiven for thinking that comprehensive insurance is going to be much more expensive because of the significant extra cover that it gives you.

Well, you might be surprised to hear that, for the average quote on our site, that is not the case.

The average comprehensive policy premium with comparethemarket.com is a little over £520. But the average Third Party Fire and Theft policy is just over £750. For the minimum level of cover, the average price was £1,115, more than twice the cost of comprehensive.

How can this be? Well insurance providers know who takes out policies and who makes claims. They know drivers taking out third party policies are generally higher risk drivers such as young drivers, or drivers with convictions, compared to those with comprehensive insurance.

When all is said and done, your actual policy cost will depend on a number of things including you and your car. How old you are, where you live, how many miles you plan on doing. Etc. etc.

That’s why when you want to compare car insurance options, you need to tell us a few details before we are able to compare the various types of insurance cover across a host of insurance providers for you.

One final piece of advice, always check your policy documentation as it does vary from provider to provider.

All average premiums are based on comparethemarket.com data in February 2016 and are based on all our customer quotes, from people with different age ranges, addresses and driving histories. You may find a cheaper or more expensive quote based on your personal circumstances.

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