Car insurance basics

Cover levels

The main cover levels are third party, third party fire and theft, and comprehensive. Third party cover helps with damage or injury you cause to someone else. Third party, fire and theft adds cover for some risks to your own vehicle. Comprehensive cover can also include damage to your vehicle, subject to the policy terms and exclusions.

A higher-sounding cover level does not automatically mean every situation is covered. Read the policy wording and schedule to understand the actual protection provided.

Terms worth knowing

• Premium: the amount you pay for the policy, either annually or through an agreed payment plan.
• Excess: the amount you may need to pay towards an eligible claim. It can include compulsory and voluntary parts.
• Exclusions: situations, uses or losses that the policy does not cover.
• Named driver: a person listed as able to drive the insured vehicle under the policy.

Before buying or renewing

Check that the driver, vehicle, address, estimated mileage and use of the car are described accurately. Also compare the cover, excess, exclusions and any optional extras, rather than looking only at the headline price.

Keep the policy documents somewhere easy to find. If your circumstances change during the policy term, tell the insurer and check whether the change affects your cover or price.