Car Insurance Guide
Our guide to car insurance contains all you need to know about finding the right type of motor insurance policy, how to lower the cost of your premium and what to do in the event of a claim.
How to get the best car insurance deal
Car insurance is almost certainly the financial product most commonly held by consumers in the UK, with the possible exception of a bank or savings account. This is hardly surprising: if you drive a vehicle, insurance is compulsory.
In theory, this ought to make everyone a car insurance expert, able to get the best deal on their motor cover.
Yet too many of us tend to stick with the same insurer for too long and end up paying hundreds of pounds more a year than we need to. We only change policies when premiums become very noticeably too dear.
Conversely, we pat ourselves on the back because we have found ultra-cheap car insurance – only to discover that when we make a claim, certain items were never covered under the terms of that policy.
Shopping around is the starting point for anyone who wants the best car insurance deal. Our car insurance comparison tool allows you to search for and compare quotes from more than 60 top insurers and brokers in the UK.
But knowing how motor insurance works can help you get an even better deal – not just on price but in terms of the service you may need from your insurer. This guide is designed to help you achieve that.
It tries to answer some of the most typical concerns of motorists: everything from explaining how your quote is set and tips on how to cut the cost of your cover, to the various steps involved in making a claim.
We also offer a jargon-buster – explaining some of the more typical terms used when taking out car insurance.
Of course, no guide can ever attempt to answer every query. If you have any further questions, feel free to visit the Car Insurance or Motoring sections in our Forums, where one of our experts – or even other forum members – will do their best to help.
What kind of motor insurance do you need?
When you take out a car insurance policy, you will be offered a choice of three main levels of cover.
Third party: the minimum type of motor insurance you can take out is “third party”. This covers liability for:
- Injuries to other people, including passengers
- Damage to other people`s property
- Passengers for accidents caused by them
- Arising from the use of caravan or trailer while attached to the car.
TIP: Third party cover is OK for people who cannot afford a better type of car insurance.
It may make sense if you are driving an old banger where almost any repair would cost more than the car is worth, or where its replacement might only cost a couple of hundred pounds at most.
But if your car costs more to replace, you need to consider something better.
Third party, fire and theft: the next step up is “third party, fire and theft”, sometimes written as TPFT. This provides the above cover, plus fire or theft of the vehicle. If you are at fault in the event of an accident, TPFT will not pay for repairs to your car.
TIP: TPFT cover is useful for those whose car is not worth much – but would still cost more to replace than the cost of excesses. It can also be useful for younger drivers who might find fully comprehensive policies very costly, those who only drive occasionally or have minimal no-claims bonuses.
But it is generally unsuitable for regular drivers, or those with expensive cars.
Fully comprehensive: this is the most complete form of car insurance and protects against the above, plus:
- Accidental damage to your car
- Personal accident benefit
- Medical expenses
- Loss of or damage to personal effects in the car
TIP: Not all “fully comp” insurance is the same. Although all insurers will cover off the basics, many will offer additional variants on their policies, such as courtesy cars in the event of theft, breakdown or accident, or protected no-claims bonuses.
You may also want free cover for driving in Europe and, in some cases, legal aid when the accident is not your fault. These benefits may incur an extra cost. |
