Insurance basics

Car insurance explained

A plain guide to car insurance in the UK: what it covers, the main levels of cover, and the legal requirement to insure a car used on public roads.

Car insurance is a policy for people and businesses that own and drive cars. It covers a range of risks that come with driving, from damage to your own car to injury or damage you cause to other people.

What car insurance can cover

Road risks

This covers the car while it is being driven on public roads. Depending on the level of cover, it may include accidental damage, theft and fire.

Liability to others

This covers the policyholder if they cause injury to someone else, or damage to another person's property, while driving.

Personal accident

This pays out if the driver, or in some policies a passenger, is seriously injured or killed in an accident.

Uninsured drivers

Some policies include extra protection if you are hit by a driver who has no insurance. In the UK, claims involving uninsured and untraced drivers are handled by the Motor Insurers' Bureau.

Comprehensive cover

This covers damage to your own car, including events that are not collisions, such as storms, theft or vandalism.

The three levels of cover

In the UK, car policies usually come in three levels:

• Third party only, which covers injury or damage you cause to other people and their property.
• Third party, fire and theft, which adds cover if your car is stolen or damaged by fire.
• Comprehensive, which also covers damage to your own car.

The cover you get depends on the policy you choose and on your own circumstances. It is worth looking at the excess, the limits and any extras, such as a courtesy car or legal expenses, and comparing policies on the same level of cover rather than on price alone.

Is car insurance a legal requirement?

Yes. In the UK you must have at least third party insurance to drive a car on public roads. The government explains the rules on gov.uk.

Kompare doesn't currently offer quotes for car insurance. If you drive a van or a taxi, or run a motor trade business, see our van insurance, taxi insurance and motor trade insurance pages.