If you drive a car or other motor vehicle, you will need to be insured in order to operate it on the roads. It can seem slightly baffling when you first start to look for car insurance, as there will be so many different options. How do you know quite what everything means? What exactly is included? What will happen if you have an accident?

The main thing to understand is that there are three basic levels of car insurance – third party, third party fire and theft, and fully comprehensive. We have put together a brief guide for you so that you can gain an understanding of what this terminology means and what kind of insurance is right for you.

Third Party Car Insurance 

This is the minimum level of car insurance in the UK. It will only cover the other driver and the damage caused to their car if you are involved in an accident. It won’t cover anything to do with your own vehicle.

People choose third party insurance because of the cost, and it can come in significantly cheaper. However, it damage occurs to your car and you can’t afford to pay for it, you will have to sell the car of send it to be scrapped without any kind of compensation.

Third Party Fire and Theft Insurance

This gives you more protection than third party insurance, but still won’t cover your vehicle if you are involved in an accident. It will, however, cover you for damages and loss caused by fires or theft. This could be a good option if you own an older vehicle and high premiums just don’t seem worth it.

Fully Comprehensive Insurance 

This will cover both you and the other driver if you are involved in an accident, so it is the most useful type of insurance to have as it will cover a range of situation. The premiums are the downside, and they will usually be high. There may also be variations between policies, such as the ability to drive your car and still be covered when abroad.