At a glance
The three main types of car insurance are comprehensive, third-party and third-party fire and theft.
Third-party insurance is the minimum cover required by law.
Despite offering a higher level of cover, comprehensive insurance can sometimes be the cheapest option.
Comparing deals can help you can find the right car insurance policy for you.
Comprehensive vs third-party car insurance
When your car insurance comes up for renewal, you’ll have a decision to make on the level of coverage you want from your policy.
Third-party car insurance is the minimum required by law, so you might assume that it will be cheaper than comprehensive, which offers more wide-ranging cover.
However, this isn’t always the case. Read on to find out why comprehensive can sometimes be cheaper, the pros and cons of different levels of cover, and for tips on finding the right policy for you.
Is comprehensive car insurance more expensive than third-party?
Less cover doesn’t automatically mean a lower premium. In fact, comprehensive car insurance is often cheaper than third-party, even when comparing the same driver and car.
That’s because lower-risk drivers are more likely to choose comprehensive car cover, while third-party policies are more common among higher risk drivers.
To give you an idea of the potential price difference, here are the typical annual premiums Compare the Market customers were quoted for each cover type:
Cover | Annual premium |
|---|---|
Comprehensive | £593[1] |
Third-party | £1,302[2] |
As you can see, there’s a substantial difference of over £700.
Some drivers still choose third-party policies because the more basic cover can feel like better value for older or lower value cars.
It’s worth comparing all levels of cover when you’re looking for a new car insurance policy.
Depending on your circumstances and what you need from your policy, you may find comprehensive cover offers better value than you expect.
Compare car insurance[1]51% of our customers were quoted less than £592.26 for their comprehensive car insurance in June 2026.
[2] 51% of our customers were quoted less than £1,301.37 per year for their third party car insurance in June 2026.
What is third-party car insurance?
Third-party car insurance, also called third-party only (TPO), is the most basic level of cover you can get and the legal minimum in the UK.
It generally covers:
Repairs to another driver’s vehicle and their property if you’re at fault for an accident
Compensation for injuries to other people involved in an accident, including your passengers.
It usually doesn’t cover:
Damage to your own car, even if the accident wasn’t your fault
Fire damage or theft of your car
Your own medical expenses or damage to your personal belongings.
For example, if you drive into a parked car, third-party insurance will cover the cost of repairing the car you hit but not your own.
Third-party car insurance vs third-party, fire and theft
Third-party car insurance covers damage or injury to other people and their property.
Third-party, fire and theft insurance does the same but also covers your car if it’s stolen or damaged by fire.
When third-party car insurance might be useful
Third-party cover can be suitable for:
Low-value vehicles
People who only drive occasionally
Drivers who are comfortable repairing or replacing their cars themselves
New or young drivers looking to lower their car insurance cost
Drivers with certain convictions, who may only be offered third-party cover.
Real life example: Pat drives an older car worth £800 and mainly uses it for local trips.
If the car is written off in an accident, Pat can afford to replace it and the cost is likely to be lower than fixing it. So, third-party car insurance could be a practical option.
Pros and cons of third-party car insurance
TPO may be suitable for some drivers, but not for others. Here are the some of the main pros and cons to weigh up when looking for the right cover for you.
Pros
Meets the UK's legal car insurance requirement
Can be suitable for some older or lower value cars where you're less worried about damage to your own vehicle
Simple cover level, which may appeal if you want fewer policy features and are mainly focused on meeting the legal minimum
Cons
Offers less protection if you can't get money back from the other driver's insurance, so you may have to pay for damages after some accidents yourself
Doesn't help cover damage to your own car, fire or theft, or your own medical expenses
Can sometimes be more expensive than comprehensive cover, depending on your circumstances
What is comprehensive car insurance?
Comprehensive car insurance usually offers more extensive cover than third-party.
Policies typically cover damage to your own car in many types of accident, even if you're at fault, as long as you meet the policy terms and conditions.
Comprehensive policies typically cover:
Everything provided by third-party insurance (and third-party, fire and theft)
Damage to your own car and any other vehicles involved in an accident, including if you’re at fault
Injuries to you and your passengers (depending on the policy)
Windscreen repairs
Flood damage
Compensation costs associated with third-party claims.
While it’s designed to be an all-rounder, the term ‘comprehensive’ can be misleading, as it doesn’t necessarily cover every scenario.
For instance, it typically doesn’t include:
Theft due to carelessness, such as leaving your keys in the car
Damage or injuries caused by driving under the influence of drugs or alcohol
Driving without a valid licence
Driving someone else’s car, unless your policy specifically includes this
General wear and tear.
Quick tip
You’ll often need to pay extra for add-ons, such as breakdown or courtesy car cover.
However, some comprehensive policies may include them, so it's worth double checking what’s included before you buy.
When comprehensive car insurance can be useful
You might find comprehensive car insurance useful if:
Your car is new or high value, as repair costs could be substantial
You use your car every day
Your car is on finance or lease (lenders often require comprehensive policies)
You’d struggle to cover potential repair costs yourself after an accident.
Real life example: Chris owns a three-year-old car worth £12,000 and uses it to travel to work five days a week.
Because repairing or replacing the car would be costly, Chris chooses comprehensive car insurance, so he has cover for accidents, theft and unexpected damage.
Pros and cons of comprehensive car insurance
While it provides the most protection, comprehensive cover may not be for everyone. Here's what you should consider before choosing this policy.
Pros
Can offer good value for low-risk drivers
Provides wider protection than TPO, which can give peace of mind if you rely on your car every day
May include extra policy features like windscreen cover or a courtesy car
Cons
May come with higher excess, meaning you could pay more upfront if you make a claim
You could end up paying for policy features you don't need
May not be cost-effective for some older or low-value cars where the premium outweigh's the car's value
Does comprehensive car insurance cover other drivers?
Comprehensive cover doesn’t automatically insure other people to drive your car, unless they’re a named driver on your policy. It also doesn’t automatically let you legally drive someone else’s car.
Some comprehensive policies may include Driving Other Cars (DOC), but it’s often limited. Always check your policy documents or contact your insurance provider to see who can and can’t drive your vehicle.
Can I switch from third-party car insurance to comprehensive mid-policy?
You may be able to change your policy type before your renewal date. Just be aware that this may involve additional costs such as administrative or adjustment fees.
If you change your insurance provider, you may also need to pay a cancellation fee.
The exact steps to switching your policy will vary between providers, so it’s best to contact them directly and check what it involves.
Should I get comprehensive car insurance or third-party?
The best type of car insurance for you depends on your circumstances and what you need from your car insurance.
Here’s a round-up of the key differences between comprehensive car insurance and TPO:
Policy feature | Comprehensive | Third-party |
|---|---|---|
Damage to others and their property | Usually covered | Usually covered |
Damage to your own car | Usually covered | Not usually covered |
Fire and theft | Usually covered | Not usually covered |
Vandalism and weather damage | Usually covered | Not usually covered |
Injury to you and your passengers | Usually covered, subject to limits | Not usually covered |
Optional extras (e.g. breakdown cover) | Sometimes included, otherwise available at extra cost | Not usually included, available at extra cost |
If you’re still unsure, it might be helpful to ask yourself:
How much is my car worth, and could I afford to repair or replace it myself?
How often do I use my car?
How would unexpected repair costs impact me financially?
Is my car on finance or lease?
Remember, cover varies between insurance providers so it is important to read the policy wording.
Find the right car insurance for you
Ready to find the right cover for you? Just tell us about:
Your car (reg number and market value)
Your personal details (address, age, occupation, etc.)
How you use your car (e.g. for commuting, and where you park
tit overnight)Any claims or convictions
Any named drivers you’d like to add to your policy
The type of car insurance you’re looking for
We’ll then show you available options from some of the UK’s most trusted providers. You can filter policies by features including price, cover and optional add-ons.
Compare car insurance
Over the past decade, Kate has worked in various industries, including company secretarial, small business support and property investing.
Her move to financial services in 2022 not only helped her find her niche in personal finance writing, but also just how alienating finance can be. She’s now motivated by making everyday money a piece of cake for everyone, helping her readers feel informed and in control.
Kate now specialises in savings and current accounts as well as broadband, mobile and energy products.
Stephen Maunder is an experienced personal finance editor, having spent more than a decade working for consumer print and online titles. He won several industry awards for his personal finance features at Which?, before becoming Deputy Editor at Compare the Market.
Amy helps make sure you get the best value when choosing insurance. Thanks to more than four years’ experience at Compare the Market, she understands what people look for, working closely with insurance providers to offer you deals and services that are fair, easy to understand and right for your needs.
Our content is written by a Compare the Market expert, backed by data and enhanced by technology. Find out how we ensure accuracy and quality in our Editorial Guidelines.
