What does Car Insurance cover?

There are four basic forms of car insurance policy accessible within the UK, which are available regardless of the type of car you have. These include:

Act Only: The act only car insurance policy is the minimum legal policy you can obtain for driving, which covers all of the legal points of the Road Traffic Act 1988. The act only policy covers only third party liability on a public road and is a very limited form of cover. This type of cover doesn't cover damage to property and is deemed better suited to people unable to sign up to other forms of cover.

Third Party: Third party car insurance covers people driving on private and public property/roads and covers much more that the act only policy. It provides cover damage to property as well as legal liabilities, i.e. passenger indemnity. Third party car insurance also covers you for legal costs.

Third Party Fire and Theft: Third party fire and theft car insurance is the same as the basic third party cover, but offers additional cover for damage/loss caused by attempted theft or a fire. Third party fire and theft car insurance is cheaper with older vehicles that only need to be covered against basic risks.

Comprehensive: Comprehensive car insurance provides the same cover as all of the above policies, with additional accidental damage cover, which covers vehicle repairs from any kind of damage. Comprehensive car insurance is the widest form of cover you can get and is one of the more popular choices amongst drivers.

There are a number of additional policies you can take out, such as multiple driver policies, breakdown cover, no claims bonus protection cover and several other possibilities.

Different types of Car Insurance

There are several other factors that can affect your car insurance policy cost, these are often a specialty of a specific motor insurance company and they will gear their advertising towards that specific demographic. For example, some car insurance companies will offer cheaper insurance to female drivers or perhaps people driving electric or eco vehicles. If you fall into one of the following categories, you may wish to shop around for insurance quotes:

•  A female under 25 years of age.

•  Owner of a high performance/sports vehicle.

•  Owner of a classic car.

•  Have a bad driving record/convictions.

•  Use a vehicle commercially.

•  Own a motorcycle, van or camper van.

•  Import/own a non-standard vehicle.

•  Are under 30 years of age.

•  Are over 50 years of age.

•  Drive a green/eco car.

There are other companies gearing their car insurance towards other demographics, so if you fall out of the normal bracket of motorists then it is worth comparing your policies. These tailor made policies from specialist insurers understand these different types of motorist and the cost of the policy and as a result they condense their company into specialising in this form of car insurance.

As an example, a new car will depreciate in value per annum, whereas a classic car is insured for a fixed sum agreed by the insurance provider and the owner of the vehicle. Another example is that of young drivers: some of these may have been competing in rally cars from a young age and should not pay a higher premium due to age as their range of experience probably outweighs this.

Using these specialist providers offers you protection for specific risks associated with your vehicle, assistance from experts who understand your needs and cover for things the vehicle might be used for i.e. work purposes or racing. Motor insurance can also vary due to regional differences, i.e. London is largely populated and car insurance may be high whereas low crime rate areas will offer a lower cost.

Car Insurance for Learner Drivers

If you are learning how to drive you still need to be covered by a car insurance policy, whether you own your own car or are learning how to drive in a parents or friends car. Unfortunately a number of your friends or family members will be apprehensive about you driving with them, due to the cost of adding another driver or the risk of destroying their no claims bonus.

Fortunately, it is not difficult to get cheap car insurance cover for learner drivers if you shop around for your best quote. Learner drivers fall into a higher risk category of drivers and as a result you need to find a company that specialises in this type of driver. One of the concerns for insurers in that learner drivers often opt for an older car with a larger engine because they are cheaper to buy, however the car insurance premium will be higher.

It would be more feasible for a learner driver to be insured on a smaller engine car with a lower car insurance group. It can often be a cheaper option to get insured on someone else's policy, particularly if they are on a low-cost policy with no claims, however it is up to the individuals discretion as to whether they want to accept the risk to their vehicle. Going to a number of car insurance providers will give you a broader spectrum of what is available to you and can save you money.