What Are The Different Levels Of Car Insurance And What Do They Mean?

Car insurance (and for motorbikes as well) falls into three distinct categories. The first level is the cheapest and known as 'Third Party' and insures you against any damages to other people or their property (i.e. a third party). This is the legal minimum required in the UK and driving without it will result in fines and points being deducted from your license.

The second level is known as Third Party, Fire and Theft (or TPF&T), which will cover you for exactly those things, damage by fire or loss by theft of the automobile or bike, as well as damages to third parties or their property. This is a little more expensive.

The third level is 'Comprehensive' and essentially adds damage done by you, the main category not covered by the other two levels. This is the most expensive, as you would expect, and there will also be many other extra services. For example, some policies will provide a vehicle for you to use while yours is being repaired or replaced, while others may not. There are different services offered, sometimes built-in and sometimes at an extra cost, so when shopping around it is important to find out exactly what is included and what is additional.