A guide to the different types of car insurance policies you can get

Selecting and paying for car insurance is hardly the most exiting or interesting part of being a driver but the law requires you to deal with it, so it is an unavoidable part of being a motorist. There are several thousands of insurance companies operating in the UK, all of them use similar terms to describe what they do, and the types of car insurance that they provide.

If you don't understand the basics of what these different terms mean, you could select a type of car insurance that is not suitable for your individual circumstances and needs. Below we'll take a look at the common terms that you will come across when looking for the three different car insurance types that we have.

What kind of car insurance policies are there?

All UK insurance companies no matter how they word it for their advertising campaign have the same standard types of motor insurance and they are listed below.

Comprehensive Insurance (fully comp)

Also commonly known as 'fully comp', this is always the type of policy with the highest premium but on the other hand, it covers you against almost any motoring eventuality you can imagine. What exactly will be covered will vary from one insurer to another but basically, it will cover you against all the odds.

The main advantage with fully comp is that it will cover repair costs should your vehicle be damaged, even if it is your fault and this is what separates it from other kinds of car insurance policies; it will also cover against injury to yourself or someone else. It may even, depending on the company, cover you against loss of non car related items that could be stolen from your vehicle, such as birthday presents or an expensive coat.

Coverage with Third Party Fire and Theft (TPFT)

Often wrongly referred to as Third Party, which it should not be confused with, third party fire and theft (TPFT) covers you against those three occurrences. Damage to a third party, meaning it will cover you against damage to someone else's vehicle or injury to people involved in the accident, caused by you. However, most importantly, unlike comprehensive it will not pay for damage to your vehicle if the accident is your fault. If it is the other drivers fault, you would need to claim off their insurance. You will also be covered if your car is stolen and also if it catches fire due to mechanical failure or arson. This coverage is only suitable for a vehicle that has a low replacement value.

Third Party (TP) Car Insurance

Third Party is the least insurance cover that companies offer and is the minimum legal requirement as well. It is the least coverage available and is only suitable for vehicles that have an extremely low value. It will only cover you for injury to someone else and damage to another vehicle. It never covers you or your car against any kind of damage, loss or injury. If for example the car is stolen, the insurance company will not pay to replace it. This is why it is only suitable for very low value vehicles and should only be chosen if you cannot afford any other type of car insurance cover.