What level of cover do I need in my car insurance?

Opting for the right cover and not the cheapest could save you more money down the line. There are a few misconceptions about which cover guarantees you the cheapest premiums and we’re going to clear that up for you, so you can make informed decisions about your car insurance.

You are legally obligated to have insurance on your vehicle before you drive it. There are three levels of cover to choose from and

Do you need car insurance?

Yes, you are legally required to have car insurance on your vehicle before you drive. In the UK, you need to have at least a third party only (TPO) on your vehicle to legally drive it.

Three levels of cover

  • Third-party only.
  • Third-party, fire, and theft.
  • Comprehensive.

Third-Party Only

Third-party only covers third-parties only (other people) and not you.

For example, if you get into an accident and injure another driver or damage their car, the damages will be covered by your insurance provider. however, if your car is damaged or stolen, you will have to pay for the damages and loss by yourself.

There’s a popular assumption that third party only will give you the cheapest premiums. This is not the case. Make sure you do your due diligence when you’re looking for cover. Get quotes from all levels of cover and tweak the excess to suit your needs and lifestyle.

However, if you cannot get a price that fits your means and TPO is your best option, these are probably the factors that have affected you.

  • You don’t have a no claims bonus discount. Building your NCB requires driving each year without making claims.
  • The area you live in is marked as high risk to crime and theft by insurance providers.
  • Your car is only worth £1000 and you can afford to buy another if the gets damaged.

Third-party, fire and theft

Similar to TPO, third-party, fire and theft only covers other people.

If you damage another driver’s car or injure them, their covered by your insurance provider. Additionally, you will have to cover damages sustained to your car.

However, there is a difference with third-party, fire and theft. If your vehicle gets stolen or damaged by fire, your insurance provider will pay for damages or replace your stolen vehicle.

This cover won’t always be the cheapest either, it depends on your circumstances. We suggest you shop around properly.


This is the highest level of cover.

On top of including all the basic features of third-party only and third-party, fire and theft, it’s the only cover that covers damages to your car even if the accident was your fault.

List of things you can claim on

  • Accident damage
  • Vandalism
  • Fire damage
  • Theft
  • Repairs from an accident

Things you need to declare to your insurance provider

Before you take out a new policy, you need to ensure that you provide your insurance provider with accurate and up-to-date details about yourself and your car.

If you fail to provide up-to-date information, your policy could be invalidated when you make a claim. Additionally, it can be harder and more expensive to get insurance in the future.

Things you must declare

  • Modifications to your car.
  • Using your vehicle for business.
  • Been involved in an accident and or made a claim.
  • Got points on your license.
  • Changed your occupation.
  • Changed your address.

How to get the best deals on your car insurance?

If you’re shopping for your next policy, look at our 10 tips that will save you money on your car insurance