Car insurance protects you financially if your vehicle is involved in an accident, is stolen, or sustains damage. It typically covers damage to your own vehicle, damage you cause to others’ property, and injuries to other people. Coverage tiers range from basic third-party liability (the legal minimum in most places) to comprehensive coverage that also protects your own vehicle regardless of fault.
What it covers
- Third-party liability for injury or property damage to others
- Collision damage to your own vehicle
- Theft and attempted theft
- Fire, vandalism, and natural disaster damage
- Windscreen and glass replacement
- Towing and roadside assistance (with many policies)
- Rental car while yours is being repaired (with comprehensive policies)
What it doesn’t cover
- Intentional damage
- Driving under the influence of alcohol or drugs
- Using your vehicle for commercial purposes without declaring it
- Wear and tear and mechanical breakdown
- Personal belongings stolen from the vehicle (unless specified)
How to choose
Determine your coverage need: third-party only (minimum legal), third-party fire & theft, or comprehensive. Compare premiums against the excess (deductible) you’ll pay per claim. Consider agreed value vs market value for your vehicle. Check if the policy includes a choice of repairer, windscreen cover, and a hire car after an accident. Young drivers and high-value vehicles will pay higher premiums.