Types of Car Insurance

This type of insurance policy will provide you cover for damage to a third party's or if the third party is injured.  This means you have cover if you hit another car and cause damage to it or you injure the driver or any of its passengers the policy will cover the costs for the repair and any medical treatment required.  However, it will not cover the costs of repair to your vehicle or if you sustain any injuries.  Your vehicle also is not covered if it catches fire or if it is stolen.

Third Party Fire & Theft Motor Insurance
This policy is identical to the Third Party Motor Insurance except with this policy your car is covered if it is stolen or catches fire the insurers will pay out.

Fully Comprehensive Motor Insurance
Usually known as "Fully Comp" this is the most comprehensive policy available and is the most expensive of the three and covers Third Party Fire and Theft and accidental damage to your own vehicle.  Some policies may include additional items, however, if they don't it's usually quite easy to add them to your policy for an additional cost ie:

* A courtesy car if your car is off the road due to an accident
* Medical expenses, windscreens
* Replacement locks
* Personal belongings
* Driving abroad
* Accident recovery
* Breakdown recovery
* Legal Cover

How Your Premiums are Calculated

When buying motor insurance you must ensure you provide your insurer with all your information this will then ensure you are fully covered.  The factors taken into consideration when costing your insurance include who will drive the car, the type of car, where it is kept, is it just you who drives it, whether you use it for business, and the type of cover you require.  For more information about Motor Insurance Policies check the Association of British Insurers.  If you would like to find a specialist insurer or a local insurance broker contact British Insurance Brokers' Association (BIBA).  See also our 12 tips for cutting you insurance premium.