Auto Trader

Types of Insurance

Third party only
Third party fire and theft
Comprehensive
No claims bonus
Legal cover
Breakdown
Courtesy car
Vehicle excess

Third party only

This is the minimum level of insurance cover the law requires you to have to drive a car in the UK.

It does not cover any damage to your own vehicle only your liabilities to other parties. If you crash into someone and you’re to blame then your insurance will cover the damage to the other driver's car. You’re not covered if the accident was your fault or  if your vehicle is stolen or damaged by fire. Third Party insurance is recommended if your vehicle is worth less than £500.

Third party fire and theft

In addition to third party only cover, this will insure your own vehicle against theft or damage caused by fire.

Comprehensive

Full comprehensive cover is the most expensive car insurance you can buy. In addition to the cover provided by Third Party Fire and Theft, Comprehensive also covers accidental damage to your own vehicle. It is strongly recommended if your vehicle is worth more than £3000.

Protected and guaranteed no claims bonus

For each year of claim free motoring, drivers get a no claims bonus which will lower premiums by up to 70 per cent. Motorists can protect this benefit for an additional price. When protected, drivers are allowed up to one claim for that year or two over a three year period.

A guaranteed no claims bonus enables you to protect your no claims for life. You will normally need at least five years’ no claims then the insurance company will guarantee your bonus for life but they will increase your premium if you continue to claim.

Legal cover

For an additional charge, you can get legal cover. If you are involved in a legal suit then you will be covered through your insurance. Always find out how much legal cover your policy entitles you to.

Breakdown

Many insurance companies offer breakdown cover at an additional price. Always check the extra cost and compare this against some other breakdown organisations who may offer a better deal.

Courtesy car

If your car is off the road as a result of an accident, some insurance companies will provide you with a courtesy car. Most fully comprehensive policies offer a courtesy car at an extra cost which you can opt out of. The garage which is carrying out the work on your car may be able to provide you with a courtesy car while your vehicle is being fixed.

Vehicle excess

An excess is the amount you will have to pay in the event of a claim. Younger drivers normally have a higher excess as part of their policy due to the higher chance of a claim.  By increasing the excess on your policy your premium will be lowered.