Complete Car Insurance Guide

Everything you need to know about car insurance in the UK

Types of Car Insurance

1. Third Party Only (TPO)

The minimum legal requirement in the UK.

What's Covered:
  • Damage to other vehicles
  • Injury to other people
  • Damage to property
  • Legal costs
What's NOT Covered:
  • Your own vehicle damage
  • Your injuries
  • Theft of your vehicle
  • Fire damage

Best for: Older, low-value vehicles where repair costs might exceed value

Average cost: £500-£800 per year

2. Third Party, Fire and Theft (TPFT)

Adds protection against fire and theft to basic third party cover.

Additional Coverage:
  • Theft of your vehicle
  • Attempted theft damage
  • Fire damage
  • All third party coverage
Still NOT Covered:
  • Accidental damage to your car
  • Vandalism
  • Weather damage
  • Personal belongings

Best for: Moderate value vehicles in low-crime areas

Average cost: £550-£900 per year

3. Comprehensive (Fully Comp)

The highest level of coverage available.

Full Coverage Includes:
  • All third party coverage
  • Fire and theft protection
  • Accidental damage to your car
  • Vandalism coverage
  • Windscreen repair/replacement
  • Personal injury cover
  • Courtesy car (often)
  • Legal expenses (often)
Optional Extras:
  • Breakdown cover
  • Key cover
  • No claims bonus protection
  • Enhanced courtesy car
  • European cover
  • Personal belongings cover
  • GAP insurance

Best for: New or valuable vehicles, regular drivers

Average cost: £400-£1,200 per year (varies significantly)

Factors Affecting Your Premium

Personal Factors
  • Age: Younger drivers (17-25) pay more
  • Driving Experience: New drivers face higher premiums
  • Claims History: Previous claims increase costs
  • No Claims Bonus: Can reduce premium by up to 75%
  • Occupation: Some jobs considered higher risk
  • Address: Crime rates affect premium
  • Credit Score: Poor credit may increase costs
  • Driving Convictions: Points increase premium
  • Medical Conditions: Must be declared to DVLA
  • Named Drivers: Adding experienced drivers may help
Vehicle Factors
  • Insurance Group: Groups 1-50 (1 cheapest)
  • Vehicle Value: More expensive = higher premium
  • Engine Size: Larger engines cost more
  • Vehicle Age: Newer cars cost more to repair
  • Security Features: Alarms/immobilisers reduce cost
  • Modifications: Most increase premium
  • Performance: Sports cars cost more
  • Safety Rating: Better ratings may reduce cost
  • Parts Availability: Rare parts increase cost
  • Fuel Type: Electric cars may have different rates
Policy Factors
  • Excess Level: Higher voluntary excess = lower premium
  • Mileage: Lower annual mileage reduces cost
  • Usage Type: Social only cheaper than business use
  • Payment Method: Annual payment cheaper than monthly
  • Start Date: Starting immediately often costs more

Understanding Insurance Groups

All vehicles are assigned to insurance groups 1-50, with 1 being cheapest to insure.

How Groups Are Determined
  • Damage and Parts: Cost of common repairs and parts
  • Repair Time: Longer repairs mean higher costs
  • New Car Value: List price when new
  • Performance: Acceleration and top speed
  • Safety: Euro NCAP ratings and safety features
  • Security: Standard security features
  • Bumper Compatibility: Alignment with standard heights
Example Groups
Group Range Typical Vehicles Average Premium
1-10 Fiat Panda, VW Up!, Nissan Micra £300-500/year
11-20 Ford Fiesta, VW Polo, Mini Cooper £400-700/year
21-30 VW Golf, BMW 1 Series, Audi A3 £500-900/year
31-40 BMW 3 Series, Audi A4, Mercedes C-Class £700-1,200/year
41-50 Porsche 911, BMW M3, Range Rover Sport £1,000-3,000+/year

How to Save on Car Insurance

Before Buying a Car
  • Check insurance group before purchasing
  • Avoid high-performance models
  • Consider cars with good safety ratings
  • Look for vehicles with standard security features
When Getting Quotes
  • Shop Around: Compare at least 5 different insurers
  • Use Comparison Sites: But also check direct insurers
  • Timing: Buy 20-26 days before renewal for best prices
  • Accurate Information: Be precise about job title and mileage
  • Consider Telematics: Black box policies for young drivers
Policy Adjustments
  • Increase voluntary excess (but keep affordable)
  • Limit mileage if possible
  • Add experienced named driver
  • Pay annually instead of monthly
  • Remove unnecessary extras
  • Build no claims bonus
  • Consider multi-car policies
  • Park securely (garage/driveway)
  • Improve security (approved devices)
  • Take advanced driving courses
Never Do These:
  • Fronting: Falsely naming someone else as main driver
  • Lying: About modifications, claims, or convictions
  • Underestimating Mileage: Can invalidate your policy
  • Auto-Renewal: Always check for better deals

Making a Claim

At the Scene of an Accident
  1. Stop: It's illegal to leave the scene
  2. Check Injuries: Call 999 if anyone is hurt
  3. Make Safe: Turn on hazards, set up warning triangle
  4. Exchange Details: Names, addresses, insurance details
  5. Take Photos: Damage, road layout, weather conditions
  6. Get Witnesses: Names and contact details
  7. Don't Admit Fault: Let insurers determine liability
Information to Collect
  • Other driver's name and address
  • Registration numbers
  • Insurance company names
  • Time and date
  • Weather and road conditions
  • Photos of damage
  • Sketch of accident scene
  • Witness details
  • Police incident number (if attended)
  • Dashcam footage
Claims Process
  1. Report Immediately: Most insurers have 24-hour hotlines
  2. Provide Information: Be honest and thorough
  3. Assessment: Insurer will assess damage
  4. Repair Approval: Use approved repairer or get quotes
  5. Pay Excess: Due when collecting repaired vehicle
  6. Settlement: For write-offs, negotiate market value

Young Driver Insurance

Drivers aged 17-25 face the highest premiums. Here's how to reduce costs:

Best Options for Young Drivers
  • Black Box Insurance: Can save 20-40% by monitoring driving
  • Named Driver: Start as named driver on parent's policy
  • Pass Plus: Advanced driving course can reduce premiums
  • Student Discounts: Some insurers offer student rates
  • Multi-car Policies: Family policies may be cheaper
Best First Cars (Low Insurance)
  • Volkswagen Up! (Group 1-3)
  • Ford Ka+ (Group 2-3)
  • Fiat 500 (Group 3-6)
  • Vauxhall Corsa (Group 2-8)
  • Citroën C1 (Group 1-3)
Quick Tools
Premium Calculator Group Checker Compare Quotes
No Claims Bonus
Years Discount
1 30%
2 40%
3 50%
4 60%
5+ 65-75%
Did You Know?

The average UK driver makes an insurance claim once every 10 years. Building your no claims bonus is one of the best ways to reduce premiums.