If you own a car, you are legally obliged to have car insurance to drive them on UK roads. Even if you do not use your car, you are still required to insure it, unless you officially register your car as off-the-road (also known as SORN).

What kind of car insurance you go for will depend on your budget and the level of coverage you want. But don’t sweat too much thinking about which insurance plan to choose. Today, we explain the different types of Insurance plans and what they have to offer, to help you pick the right option.

‍

There are three main types of Car Insurance available: 

1. Fully Comprehensive 
2. Third-Party
3. Third-Party, Fire and Theft 

It is worth comparing all your car insurance options to find the deal that’s right for you.

‍

Fully Comprehensive

The highest level of insurance we can have is a fully comprehensive plan. If you're looking to buy a new car, especially an expensive choice, this could be the right plan to help you sleep soundly at night. It covers you, your car and any others involved in an accident. It contains all the cover of a third-party fire and theft policy, but also shields you as a driver and might pay out for damage to your car. It may pay out for medical fees, legal fees and accidental harm.

‍

You can claim for:

• Repairs after an accident.
• Accidental harm.
• Vandalism – for example, if someone purposely wrecks your car.

‍

Depending on the policy, It might mean that you can drive other people’s cars legally if you have their consent. But this does not give you more than third-party cover. This does mean that you have no cover if you damage the car you were driving. Check policy details for this – they may differ. It is vital to note that even though it offers the most coverage, fully comprehensive is not always the most expensive.

‍

Third-Party

This is the legal minimum that you can have. It backs you for the expenses of injury or damage that you may cause to other people or their property and it does shield you if your own car is stolen or damaged. Just because it is the basic level of coverage that you can have, does not mean it is the cheapest. So, it may be fit mainly for people who struggle to get cheap comprehensive insurance.

‍

This cover might be ideal when:

• You do not have a no-claims bonus.
• You live in an area that is deemed high risk for crime and other risks.
• Your car is valued at less than, say, £1,000, and you can afford to buy another one if you have an accident.

‍

Third-Party, Fire and Theft

As for third-party insurance, this covers other people but it does not protect you if your own car is harmed. It is a basic third-party coverage plan with added security against your vehicle being damaged, stolen or destroyed in a fire. Again, it is not exactly cheaper than a fully comprehensive cover – always compare costs. Remember that you won’t be covered for accidental damage in this plan.