How to choose the right car insurance for you

14 Posted: 14th Aug 2023
How to choose the right car insurance for you

Choosing car insurance may seem like a pain, and can often be daunting, but it’s a much-needed necessity for all car owners who use the roads. But with so many providers out there, offering so many different policies, finding what’s right for you can be a bit of a headache.

Whether you’re looking to renew your car insurance, or you’ve just passed your driving test and need some information, fear not, as we try to add some clarity to the situation and steer you in the right direction of getting the most suitable car insurance for you.


  • What Are the Three Most Common Types of Car Insurance?

    You will often find that there are three main types of car insurance that are offered almost everywhere.

    Third-Party Only:

    Third-party only is the bare minimum car insurance that you can have if you wish to legally drive on the roads. It offers the least protection as it covers damage or injury you may cause to others, their property, or their car. 

    If you hit someone else, it will cover their repairs as well as medical expenses for anyone, apart from yourself, in either car. However, it can be more costly should you find yourself in an accident, as you would then have to pay for repairs, replacements, or any medical costs for yourself that you’ve incurred, out of your own pocket.


    Third-Party, Fire and Theft:

    The next step up from Third-party only, this level of insurance provides you the same basic coverage as the aforementioned type, but also covers you should your car be stolen or suffer damage in a fire or explosion. 

    However, you remain uncovered for accidental damages meaning that if you are deemed at fault for an accident, then you still have to fork out for repairs to your own car and medical costs for yourself.


    Fully Comprehensive:

    As the name suggests, this is the most complete coverage of the main three types of insurance you can find on the market. Covering all of the above, it also includes coverage for you and your car, as well as its contents, any passengers and may even include extras. 

    When you buy fully comprehensive insurance, you’ll agree an excess fee to pay should an accident be your fault, meaning you’ll only have to pay the pre-agreed fee towards any claim and not the full amount.

  • Which is The Cheapest Type of Car Insurance?

    So, after all that’s been said, which of these three main options is actually the cheapest insurance choice? 

    Well, many consider Third-party only as the cheapest option, at least on face value, using the logic that it offers less so it should cost less. This has shifted as of late with more policy providers offering cheaper fully comprehensive insurance because they are less likely to receive a claim from it. This will vary from company to company, but it’s always worth comparing prices of fully comprehensive and third-party options.

  • Are There Other Types of Car Insurance?

    Outside of the main three types of car insurance, there are also a handful of other options. These typically offer cover for specific needs but can be useful and more cost-effective depending on your requirements.

    Provisional Licence Insurance:

    Also known as Learner Driver Car Insurance, this covers those who don’t have a full licence yet and so are undertaking lessons and practice sessions. 

    Telematics Insurance:

    This involves having a device fitted to your car or using an app when driving that monitors your speed and other aspects of your driving. By monitoring whether you are a safe driver, it can offer you a cheaper premium and so is popular with younger drivers who may typically pay more for premiums otherwise.

    Pay-as-you-go Cover:

    Like telematics insurance, in that your driving is monitored, there are a few versions of this type of insurance. Essentially, by tracking your mileage or time on the road, you can keep costs low, and with pay-per-mile or pay-per-hour policies, it’s a choice for those who need a car, but its use is few and far between.

    Driving Abroad Cover:

    This covers you when driving overseas so you needn’t worry about differing insurance rules and regulations when travelling in a foreign country. This can sometimes be offered for a limited period when you take out fully comprehensive insurance, or you can add it onto your existing coverage.

    Multi-Car Insurance:

    For multi-car households, this can be easier and cheaper (depending on individual needs) as you can insure two or more cars on one policy, typically at a discounted price.

    Temporary Car Insurance:

    Short term cover over a period of days, weeks, or months, is good for trips away or borrowing someone else’s car. Alternatively, there’s also the option of becoming a named driver on someone else’s car.

    Electric Car Cover:

    Tailored for electric cars, this will likely include extra cover for charging kits and batteries.

    Business Car Insurance:

    If your car is used for work, beyond regular commuting, then this offers cover for those situations that may arise.

    Classic Car Insurance:

    If you have an older car that’s used primarily for pleasure, then this is designed for those who admire their cars more than they use them.

    Track Day Insurance:

    Be it drifting, or dragging, this provides cover for any accidents or mishaps that may happen on organised track days.

  • Which Car Insurance is Best?

    So, which car insurance is best? Well, there’s no definitive answer to that as different motorists will have different needs and budgets. However, if you want the most coverage without getting specialised insurance then fully comprehensive policies offer you that.

  • What Extras Can I Get On My Insurance?

    Different policy providers will offer different extras, so it’s worth looking around for exactly what you need:

    • Breakdown Cover – Often purchased separately, this can be included in your policy and allows you to get roadside assistance should your car break down.
    • Personal Accident Cover – This is designed to pay out if you suffer life changing consequences from an accident, or to loved ones in the case of death. Whilst many policies will pay out for medical costs, this can cover ongoing treatment as a result of such accidents.
    • Courtesy Car Cover – If your car is out of action for repairs, a courtesy car will be provided for you to use in the meantime.
    • Windscreen Cover – Covering the cost of repairs for cracks, chips or even smashed windscreens, this isn’t always covered by your insurance so it’s worth checking your policy. Depending on the windscreen cover, it may also cover all glass in the car, including mirrors, windows, and sunroofs.
    • Motor Legal Expenses Cover – If you have to pursue a claim or defend yourself against a claim in a non-fault accident, this covers the cost of the associated legal fees up to an agreed amount on the policy.
    • Tyre Protector Cover – Very few insurance policies cover tyre damage so, if you want protection against accidental loss or damage to the car’s tyres, you may well have to seek it out as an extra.
  • Am I Insured to Drive Other Cars?

    Driving Other Cars (or DOC) is not usually included in policies, and even when it was, it still only offered third-party only cover and you needed permission from the vehicle owner. 

    The best way of making sure you are covered on another car now is to get either temporary car insurance on that car, or be added as a named driver on the existing policy of the owner.

  • What Factors Can Affect Your Insurance?

    Insurers take a range of factors into account. These include:

    • Age – Young drivers tend to pay higher premiums.
    • Driving history – Insurers will consider your experience, any claims, and any convictions.
    • Where You Live – Some areas experience a higher number of burglaries than others, so insurers will assess your local crime rate.
    • Your Car’s Insurance Group – Vehicles fall into different insurance groups; the higher the group, the more you’re likely to have to pay for car insurance.
    • Your Car’s Make and Model – More powerful cars are usually more expensive to insure.
    • The Value of Your Car – The higher the value, the more it will appeal to thieves – and cost to repair.
    • Your Annual Mileage – The more you drive, the higher your risk of being in an accident.

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