Types of Cover

Levels of cover available

The UK car insurance market is highly competitive, and as such an increasing number of providers are now offering a range of different levels of cover and plans combined with discount deals on secondary services such as breakdown cover and money off other insurance plans. Despite this, there are three main types of car insurance policies available which provide more or less the same levels of cover across insurers. The main types of car insurance policy available to UK drivers are:

• Third Party Only (TPO)

• Third Party Fire and Theft (TPFT)

• Comprehensive / All Risk

Third Party Only (TPO)

Third Party Only or TPO insurance is the absolute legal minimum amount of cover drivers are required to have. Third Party covers your liability for damage to other people's vehicles and property as well as personal injuries to other people, including passengers in your car. If you damage somebody's car, your insurance pays for their damage, but not your own. Conversely if your car is damaged in an accident and you are not to blame, then expenses should be covered by the other driver's policy.

• Third Party insurance is the minimum level of cover that you are legally required to have for your vehicle

• This type of insurance protects you against any claims made against you in the event of an accident

• This type of policy will also cover any property damage that is proven to be your fault in the event of an accident.

• Third Party cover usually comes with some measure of cover to provide for legal costs, should any claims made by you or against you require you to seek advice from a solicitor.

• If you cause an accident, third party car insurance only covers you for the damage or injury caused to a third party – this includes passengers and other drivers but not yourself

• If your car is stolen and the thief causes an accident, you will be covered for the damage or injury caused to a third party, but you will not be covered for any damages to your own vehicle. Similarly, you will not be able to make a claim for damages to your vehicle if it is set on fire and/or stolen.

• You will not be covered if you drive a car that does not belong to you, if you have third party only insurance.

Third Party, Fire and Theft (TPFT)

Third Party Fire and Theft, commonly abbreviated to 'TPFT', provides the minimum required amount of cover to protect other drivers and passengers in the event of an accident and come with, as is suggested, additional financial cover for your car in the event of it being stolen or set on fire. As with most Third Party insurance plans, you will still not be insured to drive a car that does not belong to you, nor will you be able to claim for damages if you are at fault in the event of an accident.

• TPFT provides insurance against any claims made against you in the event of an accident. Property damage proven to be your fault in the event of an accident will also be covered.

• You will be able to claim for damages if your car is stolen or sustains damage as a result of theft, or is damaged or destroyed by fire.

• The theft and associated damage has to be reported to the police before you contact your insurer to make a claim with this type of policy.

• Cover for solicitors fees should you need to resort to legal action is also included.

• TPFT insurance only covers you for the damage or injury caused to a third party – other drivers and passengers – in an accident, and not yourself

• You will not be covered if you drive a car that is not registered in your name with TPFT.

• You will not be covered for repairs for your vehicle if you are at fault in an accident.

Comprehensive / All Risk

Comprehensive covers every party involved for damage and/or personal injury, including the named policyholder, regardless of who is at fault – cover for fire and theft is also included.

Whereas the limitations of Third Party and Third Party Fire and Theft cover provided are more or less the same between insurers, Comprehensive or All Risk policies often differ between companies in that alongside the level of cover described above, some also supply additional benefits, with cover extending to the loss or damage to personal effects left in the vehicle; other Comprehensive policies allow you to drive other people's cars whilst still being covered, some come with windscreen cover, and some allow you to claim back any excess if the accident was not your fault.

• This type of insurance allows you to claim for damages to your vehicle in the event of an accident in almost any circumstance.

• Provides full cover for you, your passengers and any other third party.

• Cover for damage caused by fire, theft and accidental damage not resulting from a crash included.

The following benefits, often themselves available as separate cover options, are common features of many Comprehensive car insurance policies but are not typical of every Comprehensive plan available:

• Protected No Claims bonuses, insuring that the NCB discount remains the same in the event of an accident – the premium overall may rise but the rate of discount will remain the same.

• Small claims discount schemes allow you to make claims for small repairs to your car, such as replacement windscreens without affecting your NCB and in some cases, without having to pay for any excess as well.

• Full personal cover with a comprehensive policy allows you to drive other vehicles and still enjoy all the benefits of your insurance plan.

• Provision of hire cars and replacement vehicles should your car need extensive repairs or is written off in the event of an accident.

• Cover for items such as mobile phones, chargers and audio/stereo equipment stored in your car – as these items are high risk, policies providing cover for them are rare.

Related Frequent Questions:

• Accidents & Incidents
• How to Claim - A Step by Step Guide