The Different Types of Car Insurance

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Written by Michael Foote , founder of Quote Goat, with over 13 years experience working in the finance, insurance and currency sectors.

Car insurance is a legal requirement for every driver in order to protect yourself and other people on both public and private roads. With this said, it may not always be wise to opt for the most basic level of cover in order to save money on your premium. After all, many first-time drivers are led into a false sense of security when obtaining a quote because the big industry words make a policy sound reliable. Of course, every driver’s requirements can differ considerably. Read on as we go over the three different types of car insurance…

Third Party Only

As the most basic level of cover, third-party only (TPO) insurance is also the cheapest on the market. It provides protection for other drivers, vehicles, and property in the event of an accident that is the fault of the policy owner. With this said, any damage to the driver’s vehicle or any injuries that may be sustained by the driver are not covered by third-party only insurance which can land people with some pretty hefty bills to pay.

Third Party, Fire And Theft

Some drivers don’t want to pay a lot to insure their vehicle, however third-party only insurance isn’t always the best decision. After all, any damage to your car in the event of an accident will be paid for out of your pocket! Third Party Fire and Theft (TPFT) insurance is the second level of car insurance cover on the market and it provides the same benefits as Third Party Only insurance as well as additional cover for damage in the event of attempted theft or fire damage to the vehicle, and even provides a replacement should the car ever be stolen. Plus, a third-party, fire and theft policy applies to both accidental fires and arson.


The highest level of cover that a driver can obtain is fully comprehensive insurance. This covers both you and your vehicle as well as other road users and pedestrians in the event of an accident. For instance, comprehensive policies will insure a vehicle for damage caused by both accidental or arson related fires, theft and vandalism, accidental damage, personal injuries where the driver is at fault, and even windscreen repairs. In fact, the majority of companies will also provide a courtesy car that the policy holder can use whilst theirs is being repaired.

Although it is thought to be the most expensive level of cover, a comprehensive policy can actually be cheaper than third-party only or third-party, fire, and theft insurance because drivers with these lower levels of cover are statistically more likely to make an at-fault claim so the policy premiums are increased accordingly.

In layman’s terms, insurance provides financial protection in the event of an accident, covering a driver in the case of injuries to themselves or passengers, other drivers, and even pedestrians depending on the level of cover that they invest in. After all, cars are a lot more dangerous than we realise. Interestingly, car insurance has been a legal requirement since it was introduced alongside the Road Traffic Act in 1930! For all your insurance needs, check out Quote Goats’ trusted comparison site today.

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