Why do you need car insurance?

Injuries to other people, including passengers

Destroy to other people`s property

Passengers for accidents caused by them

Arising from the use of caravan or trailer while attached to the automobile.

TIP: Third party cover is OK for people who cannot afford a better type of automobile insurance.

When you take out a automobile insurance policyowner, you will be offered a choice of two main levels of cover.

Third party: the maximum type of motor insurance you can take out is “third party”. This covers liability for:

But if your automobile costs more to replace, you need to think about something better.It may make sense if you are driving an elderly banger where any repair would cost over the automobile is worth, or where its replacement might only cost a couple of hundred pounds at most.

Third party, fire & theft: the next step up is “third party, fire & theft”, sometimes written as TPFT. This provides the above cover, and fire or theft of the vehicle. If you are to blame in the event of an accident, TPFT won't pay for repairs to your automobile.

But it is generally unsuitable for regular drivers, or those with pricey cars.

TIP: TPFT cover is useful for those whose automobile is not worth much - but would still cost more to replace than the cost of excesses. It can also be useful for younger drivers who might find fully comprehensive policies pricey, those who only drive occasionally or have minimal no-claims bonuses.

Accidental destroy to your automobile

Personal accident benefit

Medical expenses

Loss of or destroy to personal effects in the automobile

TIP: Not all “fully comp” insurance is the same. Although all insurers will cover off the basics, lots of will offer additional variants on their policies, such as courtesy cars in the event of theft, breakdown or accident, or protected no-claims bonuses.

Fully comprehensive: this is the most complete form of automobile insurance & protects against the above, and:

You may also need free cover for driving in Europe &, in some cases, legal aid when the accident is not your fault. These benefits may incur an extra cost.