Car insurance, decoded
Comprehensive, third party, black box, pay-per-mile: what each one actually covers, when it's the smart pick, and which extras are worth your money.
Last reviewed against official sources
Every UK policy sits on one of these. The difference only shows up when something goes wrong, so pick with that day in mind.
| What's covered | Comprehensive | Third Party, Fire & Theft | Third Party Only |
|---|---|---|---|
| Injury to other people | |||
| Damage to other cars and property | |||
| Your car stolen | |||
| Your car damaged by fire | |||
| Repairs to your car after a crash you caused | |||
| Vandalism to your car | |||
| Windscreen and glass repairs | Usually |
Covers you, your car and everyone else
Best for: Most drivers. It's often the same price as third-party cover, or even cheaper, because insurers see people choosing the bare minimum as riskier. A must if the car is on finance or worth more than you could happily replace.
Everyone else, plus your car if it's stolen or burns
Best for: An older, low-value car where a comprehensive payout would barely beat your excess. Only worth it if the quote is genuinely cheaper, so always price up comprehensive too.
The legal minimum to drive on UK roads
Best for: Rarely the bargain it looks. Consider it only for a car you could write off without a second thought, and expect comprehensive to cost about the same.
The quick test: get a comprehensive quote and a third party, fire and theft quote with identical details. If comprehensive costs the same or less, take it. If it costs more, ask yourself whether the yearly difference, plus your excess, is close to what the car is worth. If it is, the cheaper cover can make sense.
On top of the cover level, these policy types can cut the price a lot if they match your life.
New and young drivers. A box or app scores how smoothly you drive, and careful driving can bring the price down a lot. Some come with night-time curfews.
Low mileage: weekend cars, home workers, second cars. You pay a fixed yearly part plus a charge for each mile you actually drive.
Borrowing a car, test-driving a private sale or sharing a long trip. Cover from an hour to a few weeks, without touching the owner's no-claims discount.
Two or more cars in one household. One renewal date, a combined discount, and each driver still builds their own no-claims bonus.
Practising in a family car. A separate policy means a learner's bump won't dent the owner's no-claims discount.
Older enthusiast cars driven a few thousand miles a year. Often an agreed value, so a write-off pays what the car is really worth.
Weighing up pay-per-mile? A free MOT history check shows the odometer at every test, so you can see how many miles you really do a year. Our guide on how to check car mileage explains how.
A standard courtesy car only appears while an approved garage repairs your car. If it's stolen or written off, you get nothing. The guaranteed version covers those cases too.
Pays the legal costs of recovering money you lose after a crash that wasn't your fault: your excess, a hire car, time off work. Check your home insurance doesn't already include it.
It protects your discount percentage, not your price. After a claim the premium can still rise. Most useful once you've built several claim-free years.
For new or financed cars: tops up a write-off payout to what you paid or still owe. Usually much cheaper bought standalone than from the dealer.
Handy, but many bank accounts and new-car warranties already include it. Don't pay twice.
Replacing modern keys can be pricey, but home insurance often covers them, and life or income cover usually beats personal accident cover.
About the excess: it's the compulsory part plus any voluntary amount you add. A higher voluntary excess lowers the premium, but only choose a figure you could actually pay tomorrow.
Spreading the cost is a loan with a friendlier name. Pop in the two prices from your quote and we'll show the interest you're actually paying. No guesses, just your numbers.
Add the pay-in-full price and the monthly instalment from the same quote to see the difference.
Quotes tend to be cheapest roughly three to four weeks before renewal and creep up in the final days.
It must show last year's price. Since January 2022, FCA rules stop insurers charging you more at renewal than a new customer would pay through the same channel.
Too low and a claim can be cut; too high and you pay for miles you never drive. Your MOT records show what you actually covered.
Job title, overnight address, main driver and modifications all count. A cheaper quote built on a wrong answer is worthless at claim time.
An expired MOT can hand your insurer a reason to refuse a claim, so check whether you can drive without an MOT. If your postcode shows up on our car theft hotspots map, tell your insurer about any Thatcham-approved tracker or immobiliser you fit.
Add your car to My Garage, pop in your policy end date and we'll send insurance renewal reminders alongside your MOT and tax alerts. You can also confirm your car is on the Motor Insurance Database with a free askMID check.
Third party only covers injury to other people and damage to their property. Third party, fire and theft adds cover if your own car is stolen or damaged by fire. Comprehensive also pays to repair or replace your own car after an accident, even if it was your fault, and usually includes windscreen cover.
Often, yes. Insurers tend to see drivers who choose third party cover as higher risk, so comprehensive quotes can be the same price or lower. Always compare both before deciding.
Mainly for an older, low-value car where a comprehensive payout would be close to your excess, and only when the third party, fire and theft quote is genuinely cheaper than comprehensive.
For new and young drivers it is often the cheapest way to get insured, and careful driving can lower the price further at renewal. It suits people who mostly drive in daytime and don't mind their driving being scored.
No. It keeps your no-claims discount percentage after a claim, but the insurer can still raise your base price, so your premium may go up anyway.
Paying annually is almost always cheaper. Monthly instalments are a credit agreement and often carry interest. Use the calculator on this page with the two prices from your quote to see exactly how much extra you would pay.
Checked on . Rules change, so the official pages always have the final word.