Insurance Policy Types

Third Party Vehicle Insurance

Third party car insurance is a legal requirement in the UK. It covers loss or damage to other people's property and any injury caused to any person other than the driver of the insured vehicle.

If your car is only worth a few hundred pounds, Third party car insurance may be the most sensible option as other forms of insurance may cost more than the car is worth. However, you should consider additional cover such as Fire and Theft or Legal Protection cover to strengthen the Third party policy.

In law, you are the first party, your insurance company is referred to as the second party and any person with whom (or thing with which) you have an accident is called the third party. Therefore if you are involved in an accident with another vehicle they are the third party. If you damage a wall which belongs to a local business then the owner of the wall (the business) would be the third party.

Third Party Fire and Theft

If you choose to have Third party Fire and Theft insurance, you will be covered for damage to property belonging to and personal injury of third parties as well as fire and theft cover for your own car. With third party only car insurance there is no cover at all for your vehicle.

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Fully Comprehensive Insurance

Fully Comprehensive insurance provides additional cover to that offered by Third Party Fire and Theft car insurance. The most important differences are that the following are included in a policy: Damage to your car (subject to any excess that may apply); windscreen cover; personal accident cover for yourself and personal affects cover, including stereo/audio equipment. You can check exactly what is included when you discuss your quotation.

You may have bought your new car using a credit agreement or loan. In this case you'd be advised to insure the vehicle for Fully Comprehensive cover. There are many stories about people who have to carry on with payments on a car which was written off or stolen long ago.

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Social Domestic & Pleasure Insurance

This covers you for daily journeys in your car which are not related to any form of business use. If you travel to work in your car you must have Social Domestic and Pleasure including commuting to and from a permanent place of work included in your policy.

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Uninsured Loss Recovery

If you are involved in an accident with an uninsured motorist and you have comprehensive insurance your policy will pay for repairs to your car, but you will still have to pay any excess that is applicable. In addition, if you or your passengers were injured then you would have no recourse against the other driver without legal representation.

The uninsured loss recovery option works to seek recompense for the expenses you have had to pay, the excess, a hire car, perhaps loss of earnings and any personal injury claims. This saves you the effort of seeking redress from the third party directly.

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