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Choosing the right car insurance policy

Choosing the right car insurance policy

If you’re looking for car insurance, you might assume that a third party policy will be the cheapest. This isn’t always the case. It’s worth comparing all your car insurance options to find the deal that’s right for you.

Daniel Hutson
From the Motor team
5
minute read
posted 24 JANUARY 2020

Is third party car insurance right for me?

Third party insurance is the minimum level of insurance you need by law. You’d expect third party only insurance to be the cheapest option as it offers the least protection of all the types of cover available, so you might be surprised to learn otherwise.

Third party insurance typically covers:

  • Damage to someone else’s car or property
  • Injury you may cause to others
  • Injury to your passengers during an accident  

Third party insurance doesn’t cover:

  • You
  • Your car

Watch out: in the event that your car is stolen or damaged in an accident or a fire, you’ll have to pay to replace it. Also take note that your policy won’t cover you if you’re injured in an accident.

Is third party, fire and theft car insurance right for me?

Third party fire and theft insurance covers everything a third party car insurance policy does, but with added protection against fire and theft. It’s useful if you’re looking for more than just the bare minimum of cover or if you live in an area that’s considered high risk for crime. It’s worth noting that damage caused by attempted theft may not be covered by some policies, so think carefully about what you might need.

Third party, fire and theft insurance typically covers:

  • Damage to someone else’s car or property
  • Injury you may cause to others
  • Injury to your passengers during an accident
  • Fire damage**
  • Theft (and possibly damage caused by attempted theft)**

**After paying any agreed compulsory and voluntary excess.

Third party, fire and theft insurance doesn’t cover:

  • You
  • Your car (except for fire damage and theft)

Watch out: bear in mind that this type of car insurance won’t cover your car for accidental damage.

Is fully comprehensive car insurance right for me?

Fully comprehensive car insurance offers the highest level of cover available. If you have a new or expensive car, or often travel with expensive tech or belongings in your car, this could be the type of policy for you.

Fully comprehensive insurance typically covers**:

  • Damage to someone else’s car or property
  • Injury you may cause to others
  • Injury to your passengers during an accident
  • Fire damage**
  • Theft (and possibly damage caused by attempted theft)**
  • Chipping/scratching**
  • Malicious damage and vandalism**
  • Accidental damage to your car**

**After paying any agreed compulsory and voluntary excess.

Watch out: comprehensive car insurance doesn’t necessarily mean everything. Extras such as a courtesy car, windscreen cover and personal belongings (like a sat nav) might not be covered by your policy. Furthermore, it may not always cover personal injury you cause to yourself, so remember to check all these details with each insurance provider when you get a quote.

What affects the cost of car insurance?  

The cost of car insurance will depend on your age, where you live, the make and model of your car, the insurance group it is in, how much your car is worth and how many miles a year you drive.

Which type of car insurance is the cheapest?

The cheapest car insurance will depend on your personal circumstances – and it won’t always be third party insurance. You’d be forgiven for thinking that comprehensive car insurance is going to be the most expensive level of cover because of what it includes. But you might be surprised to hear that’s not the case for the average quote on our site.

The average comprehensive policy premium with Compare the Market is £698^^. But the average third party, fire and theft policy is just over £1,082^^^. For third party, the minimum level of cover, the average price was £1,832, more than twice the cost of comprehensive^^^^. 

This is because insurance providers know that drivers who take out third party policies are generally higher risk drivers, such as young drivers or drivers with convictions, compared to those with comprehensive insurance. 

^^50% of people could achieve a quote of £698.00 per year for their fully comprehensive car insurance based on Compare the Market data in November 2019.     
^^^50% of people could achieve a quote of £1,082.00 per year for their third party fire and theft car insurance based on Compare the Market data in November 2019.
^^^^50% of people could achieve a quote of £1,832.00 per year for their third party car insurance based on Compare the Market data in November 2019.

How can I find car insurance that’s right for me?

You can find the car insurance policy that’s right for you by comparing quotes from multiple insurance providers.  

Our price comparison service is an effective way to compare a variety of insurance providers and get an overview of deals on the market.

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