Car Insurance or Motor Insurance is a legal necessity for anyone driving on the roads, whether you are a learner driver or passed fifty years ago it is a crime to drive without insurance. Many people try to get round this, somewhere in the region of 1.6 million drivers on the roads do not have suitable insurance, and estimates suggest that this pushes up the price of everyone’s policy by somewhere in the region of £40.

For many drivers, particularly drivers who have only recent passed their tests, insurance can be an expensive commodity. Generally speaking there are two different options, Comprehensive Motor Insurance, and Third Party Motor Insurance, the former is, by definition, more comprehensive, but is also much more expensive. If you are looking for a policy, it is best to know the difference between these two types

Comprehensive Motor Insurance Policies

Comprehensive policies usually cover liability for injuries to other people, including your own passengers, as well as damage to other people’s property. It will also cover any costs that your passengers are liable for if the accident was caused by them. Though not many will require it, it also covers anything relating to a caravan or a trailer while it is attached to the car (though possibly not if it becomes unattached from the car and causes damage to others).

Most comprehensive policies will also pay out certain amounts in the event of the death or specific permanent disablement of the policy holder, and it is possible to get policies that will pay out for the death or disablement of family members. It may also pay for medical expenses incurred in an accident, up to a stated limit.

All comprehensive policies will cover fire damage, theft, accidental damage that you cause to your own car and loss of or damage to personal items within the car, though generally only up to a certain limit that will be detailed on your policy.

Third Party Insurance

Third party insurance offers significantly less protection. It will cover the costs for injuries to other people including passengers, and pay for damage to other people’s property. Like a comprehensive policy it will cover passengers for any accidents that are caused by them, and for caravans or trailers. A particularly well known type of Third Party Insurance is “Third Party Fire and Theft” and offers the additional protection against losses suffered from fire or the theft of your vehicle.

For all drivers third party insurance is significantly cheaper, but should a serious accident occur it offers a lot less in the way of protection, particularly in terms of your own belongings and your own car. Car Insurance is not always a massive expense, however, and if you are looking for a good value Comprehensive Policy it might be worth looking at Co-operative Insurance.