In the UK the bottom line is that you have to have car insurance; that’s the law. However, it’s a very competitive market and there is a lot of choice. Costs can vary widely therefore it’s an area that does benefit from you shopping around.

No one thinks it will happen to them but if your car is stolen or badly damaged in an accident your car insurance will cover you. If you damage something or someone else in an accident, and you become liable for compensation, you’ll be very glad of your car insurance as it will cover that too.

The lowest level of legal car insurance that you can drive with is called 3rd party.  It’s cheaper but it only covers the damage to other cars, people and property.  If your car is stolen then you get nothing and you get nothing for any damage done to your car.

3rd party, fire and theft is a little more expensive but it does cover your car if it’s stolen or lost to fire. The top of the range in terms of car insurance is called fully comprehensive or ‘fully comp’ which covers most eventualities and leaves car owners safe in the knowledge that damage to their own car will be paid for by the insurance.