When insuring your car, you have three main options: third party insurance, third party, fire and theft insurance or fully comprehensive car insurance.
As its name suggests, comprehensive car insurance (sometimes called a 'fully comp car insurance policy') provides the most wide ranging cover against a number of different risks.
But, what is the difference between third party and comprehensive car insurance? And what should you look for when buying it?
What is the difference between third party and comprehensive car insurance?
Third party insurance is the minimum legal requirement to drive a car in the UK and it provides cover for damage to another person or property.
Third party, fire and theft insurance provides the same cover and you'd also be able to claim if you car was damaged or destroyed in a fire or if it was stolen.
However, neither of these types of cover would pay out in the event that your car was damaged or written off in an accident that was your fault. You would have to pay
for the cost of repairs or the cost of a new car.
That's where a fully comp car insurance policy comes in.
Fully comprehensive car insurance typically covers:
Injuries to other people
Damage to other people's property
Fire damage to your car
Theft of your car
Accidental damage to your own car
Personal effects up to a specified limit
For example, if you wrote your car off in an accident that was your fault, a fully comp car insurance policy would generally cover you.
In addition, when you take out fully comp cover you'll often benefit from comprehensive insurance driving another car.
Shopping for fully comprehensive car insurance
While fully comprehensive car insurance offers the widest cover, there are still significant differences between policies offered by the major insurers. That's why it's still important to compare comprehensive car insurance before you buy.
When you compare comprehensive car insurance, take into account:
Whether a courtesy car is included if your car is off the road