It is a legal requirement to purchase motor insurance before using a vehicle on roads and highways within the United Kingdom. A minimum level of auto insurance is required to help cover bodily injury liability and property damage costs although there are higher levels of coverage available.
Third Party Motor insurance
Third party motor insurance is the absolute minimum level of motor insurance and is purchased to provide effective cover for any third parties injured in a road traffic accident where the policyholder is at fault. Additionally, third party motor insurance will also cover the cost of any subsequent repairs to a third party vehicle as a result of the same accident
Third Party (Fire and Theft) Motor Insurance
Third party (fire and theft) motor insurance is very similar to a standard third party policy but also offers a minimal level of protection to the vehicle of the policyholder. If the policyholder loses their vehicle as a result of fire or if the vehicle is stolen, the insurance company will be obliged to pay out to the current market value the vehicle. Third party (fire and theft) motor insurance still covers bodily injury liability and property damage to any other driver involved in an accident where the policyholder is deemed to be at fault.
Comprehensive Motor Insurance
Comprehensive motor insurance is the most detailed package available in the United Kingdom and as well as covering bodily injuries and property damage to third parties, an insurance carrier will also cover the cost of repairs to the vehicle of the policyholder. However, any subsequent claim on a comprehensive motor insurance policy will result in a higher premium upon renewal unless a protected no-claims bonus agreement is in place.