Third party only insurance
The minimum legal requirement for car insurance is third party, which pays for damage caused to other people's property, or provides compensation for injuries that other people or animals sustain, in an incident judged as your fault.
It doesn’t cover the cost of repairs to your own vehicle and wouldn’t cover you if your vehicle was stolen or damaged by fire. So you’d have to pay for your own repairs and maybe even an entirely new vehicle.
Third party insurance policies can cost less than more extensive policies because the cover is very limited. So if your vehicle isn’t worth very much and wouldn’t cost you a lot to replace, this could be the most suitable level of cover for you. However, you should think very carefully about whether you could afford to repair or replace your vehicle and any other expenses.
Third party, fire and theft insurance
Third party, fire and theft is the next level up and covers the costs of repairing any damage that occurs as a result of fire or theft, or if your vehicle is stolen or damaged in a fire.
Comprehensive car insurance
Comprehensive car insurance is the highest cover level and protects against damage to your own vehicle, even if you are to blame for the accident. As with all cover levels, policy terms and conditions vary so don’t assume that one comprehensive package is the same as the other – always read the documents your insurance provider sends you.