Whereas the US car insurance marketplace operates by using either the Tort or no-fault systems, the UK has three different levels of coverage. While the United States has different liability car insurance levels that vary from state to state, the basic car insurance policies offered by carriers in the United Kingdom are applicable to all counties.
Third Party coverage is the cheapest form of UK car insurance and only provides basic coverage that allows the policyholder to operate a vehicle legally. Coverage only extends to damage caused to the vehicles of other road users if the policyholder is found to be at fault in a road traffic accident.
Third Party (Fire and Theft) coverage is a little more detailed. As well as covering the cost of repairs to third party vehicles, car insurance companies will also reach a settlement if the vehicle of the policyholder is stolen or damaged in a fire-related incident.
Fully Comprehensive coverage is the most detailed form of UK car insurance and this makes it more expensive than the Third Party alternatives. A Fully Comprehensive policy will cover the cost of repairs to third party vehicles in an at-fault road traffic accident and will also be able to provide a financial settlement for the vehicle of the policyholder as well.
Fully Comprehensive car insurance often comes with a series of additional features such as roadside recovery and windscreen replacement but road users are advised to check the terms and conditions of their policy to see how far their coverage actually extends.