Types of car insurance

Whichever type of driver you are - male or female, old or young, experienced or novice - the type of insurance you take out can affect the cost of your policy. Even within each category, it may be possible to save money by shopping around and playing insurers off against each other.

Third Party Car Insurance

The basic option, a 3rd party policy covers injury to passengers in your car and damage to other vehicles. It will typically cover any emergency medical costs too, although it is unlikely that any ongoing costs will be included in the policy.
Furthermore, broken windows, overheating engines and theft or damage to property within the car all usually fall outside the scope of the cover.
As it is the basic option, 3rd party cover is also generally the most affordable, so might be a good idea for newly qualified drivers, students or those in a high-risk category such as young males. However, if you know you are at risk of needing to make a claim, it may be worth spending a little extra and ensuring you get the cover you need.

Third Party Fire and Theft

This provides the same cover as 3rd party, but with a few extra benefits. For instance, if your car catches fire - or is torched - your insurance company should still pay out. If it is stolen, you should also still be covered.
Other kinds of accidental damage may be included, but it is likely that these will vary between providers. As always, it is a good idea to check the small-print before signing any contracts.

Fully Comprehensive Car Insurance

The most complete insurance policy generally available, fully comp - short for fully comprehensive - includes a wealth of features not usually covered by other policies.
These typically include broken windows and audio-visual equipment such as your car radio, CD or DVD player.
Some providers will include extra features under this designation, which also means that a change in provider may mean a change in what's covered - again, the small-print will make clear exactly what is included.

Short Term Car Insurance

Short-term car insurance provides cover in a range of different circumstances including emergencies and when it's convenient to be insured for less than a month or so.
If you are purchasing a new car, short-term cover may provide you with the opportunity to test-drive the vehicle or, if you've already bought it, to drive it home legally.
If something happens and you cannot drive your own vehicle, short-term car insurance may be required to allow you to take control of a courtesy car or a privately obtained extra vehicle.

Pay As You Drive

A relatively new introduction to the range of policies available, pay-as-you-drive is based on global positioning systems (GPS) and tracks where and when you drive your car. Insurance premiums are usually charged by the mile at different rates depending on the time of day and the class of road on which you drive.
For example, a car driving in the rush hour every morning might be charged more per mile than one driving on an empty motorway in the middle of the night. Insurance companies say this is a good option for those who don't drive often or who only drive at off-peak times, as it may be able to save money overall.

Female Car Insurance

Since women are statistically less likely to have an accident, there have been many policies and insurers designed to provide female drivers with cheaper insurance.
This practice will be coming to an end in December 2012, however, as a 2011 European Court ruling has banned insurers from using gender in their premium calculations.
Therefore, women drivers can still find cheaper policies tailored to them on the market - but not for long.

Student Car Insurance

Because a student is normally a young person they typically pay a higher premium for car insurance.
Students should consider the options on what type of car insurance policy to have. Overall there are 3 main types of car insurance: Third party only insurance, third party fire and theft and fully comprehensive.

Young Driver Car Insurance

If you are a newly qualified or learner driver (provisional licence) with a you have probably discovered that it is difficult to find cheap car insurance.
Many factors can influence the quote price you receive such as car modifications, not having an alarm fitted.
Try to get as many quotes as possible as some insurance companies deal specifically with insuring younger drivers.

Grey Import Car Insurance

If you have a car that is not built and designed for the UK market then you must look to a specialist company to provide your car insurance.
In order to classify your car as a grey import it must have no British equivalent. Many of the bigger companies offer this kind of insurance, but its worth checking before you ask for a quote.
Many of these grey import car insurance providers can be found on specialist car insurance websites or classic car magazines.

Northern Ireland Insurance

Many insurance providers provide comprehensive car insurance cover to most UK countries, although it can be difficult to find a UK based company that will cover Northern island.
You should make sure that your car is covered if you are a resident of Northern Island.

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