Car Insurance Policies in the United Kingdom

Third Party

This is the legal minimum level of insurance required in the U.K. It provides coverage to anyone who may be affected by your driving and to their property. It specifically does not cover damage of any kind to you or to your car. However, if the accident is not your fault, you will be able to file a claim against the other party’s insurance. Some insurers will only provide this coverage on cars with a value of less than 5,000 pounds. Other insurers no longer offer it at all because it is usually bought by young drivers with low value cars, who are statistically more likely to be involved in accidents and have claims made against them.

Third Party, Fire and Theft

This extends third party cover to damage to you, your car and your passengers if the car catches fire or is stolen. It may also cover damage by lightning or explosion. It does not cover possessions inside your car, except for the radio or CD player in some cases. Some insurance companies charge less for this type of policy than for third party only because they believe that the minimum coverage is too restrictive and basic. As with all policies, premiums can be reduced if you choose to pay a larger proportion of any claim yourself, called the excess amount, or if you make no claims in a year. This last benefit is called a no-claim discount or no-claim bonus and can reduce your premium by as much as 60 percent after several years.

Fully Comprehensive

This policy further extends TPFT cover to any damage caused to your passengers or your car even if the accident was your fault. Insurers usually insist that cars worth more than 5000 pounds have fully comprehensive coverage. The protection provided by this type of policy can vary a great deal between insurance companies. For example, it may include coverage for personal injury, personal possessions, windshield replacement and the rental of a car or hire of a driver while your vehicle is being repaired. Fully comprehensive is the most popular car insurance in the U.K. and approximately 75 percent of all car insurance policies are of this type.

Specialist Insurance

Specialist insurance companies offer coverage based primarily on the driver’s profile. There are companies that specialize in policies for young or old drivers, women, journalists, people in the entertainment industry or those who use their cars very infrequently.

Supplementary Insurance

Optional, supplementary cover includes legal representation for driving-related claims made against you or on your behalf, personal accident benefits if you are injured in a car accident and breakdown coverage for roadside assistance or transporting you and your car after an accident or breakdown.

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