Types of car insurance coverage: what do you really need in the UK
Car insurance is a legal requirement in the United Kingdom, and it’s essential for protecting yourself and others on the
Compare car insurance quotes
Compare quotes in minutes and you could save up to £523*
- Compare quotes from over 120+ UK providers
- You could save up to £523* on car insurance
Why compare car insurance
Compare car insurance quotes online and you could start saving today.
You can compare car insurance from the UK's biggest brands
Compare car insurance in 3 easy steps
Provide information
Enter a few details about what you are looking for.
Compare quotes
Save money by comparing instant quotes online.
Apply online
You can then apply online and your application will be processed directly by the insurance provider.
Do I need car insurance?
You are required to have car insurance in the UK if you own or drive a motor vehicle on public roads. The minimum level of insurance required in the UK is known as “third-party insurance.”
Driving without insurance in the UK is a serious offence. If you’re caught without insurance, you could face fines, penalty points on your driving license, and even having your vehicle seized and crushed.
How do I get cheaper car insurance?
Consider the car
Consider the make, model, age, and value of your vehicle when purchasing a car.
Security
Improve the security of your vehicle by installing anti-theft devices, alarms, immobilisers, and tracking systems.
Parking
Consider where you park your car overnight.
Excess
Opt for a higher voluntary excess if you can afford it.
No claims bonus
Pay for no claims bonus protection and maintain your no claims discount even if you make a claim.
Named driver
If possible, add an experienced and low-risk driver to your policy, such as a spouse or parent.
Blackbox
Consider blackbox insurance, where your driving behaviour is monitored.
Pay annually
If you can afford it, pay your premium annually instead of monthly.
Renewal
Don't automatically renew your policy without comparing quotes.
Types of car insurance
This is the minimum legal requirement. It covers liability for injury or damage to other people and property caused by your vehicle.
In addition to third-party coverage, TPFT insurance also covers your vehicle if it’s stolen or damaged by fire.
Comprehensive insurance covers you if you damage your car, somebody else’s car or if you injure somebody in an accident, regardless of who’s at fault. It also covers your vehicle if it’s damaged by fire or stolen.
Telematics insurance involves the use of a black box device installed in your vehicle or a smartphone app to monitor your driving behaviour.
PAYG insurance allows you to pay for coverage only when you’re using your vehicle. It’s often used by occasional drivers and can be a cost-effective option.
Multi-car insurance allows you to cover multiple vehicles and drivers under a single policy.
Temporary car insurance provides coverage for a short duration, typically from one day up to a few months.
If you use your vehicle for business purposes, you may need commercial car insurance.
Factors that affect the price of car insurance
The price of car insurance in the UK is influenced by various factors that insurance providers consider when calculating premiums, including:
- Age and driving experience
- Type of coverage
- Vehicle type and value
- Engine size
- Security features
- Where you park and live
- Annual mileage
- Claims history
- Occupation
- Named drivers
- No-claims bonus protection
- Telematics devices
- Previous penalties
- Policy extras
FAQ
Need more help?
What is a no claims bonus?
A no-claims bonus is a discount offered to policyholders who have not made any claims on their car insurance policy. It rewards safe and claim-free driving.
How can I protect my NCB if I make a claim?
You can protect your NCB by purchasing NCB protection as an optional extra. With this protection, you can make a certain number of claims without affecting your bonus.
Can I drive someone else's car with my insurance?
It depends on your policy. Some policies offer “driving other cars” coverage, but it’s usually limited and may not be available with all policies.
What should I do if I am involved in an accident?
After an accident, you should prioritise safety, exchange information with the other party, report the incident to your insurer promptly, and gather evidence if possible, including photos and witness details.
Can I cancel my insurance policy at any time?
You can usually cancel your policy, but there may be cancellation fees or terms and conditions to consider. It’s important to review your policy’s cancellation policy and check with your insurer.
What happens if my car is stolen or written off?
If your car is stolen or declared a total loss (written off), your insurance provider will typically compensate you based on your policy’s terms, which may include the market value of the vehicle or an agreed-upon value.
Recent guides & articles
Car insurance discounts: how to save money on your premiums
Car insurance is a necessity for drivers in the United Kingdom, but it can also be a significant expense. Fortunately,
How you could save money on your car insurance
Car insurance is a legal requirement for drivers in the UK, but it doesn’t have to break the bank. With
