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Insurance glossary

Car insurance

Car insurance is a policy that protects the car owner and other road users from monetary loss if their vehicles are damaged.

Third party cover, which only pays for the damage done to other cars, people, and property caused by the car owner, is a legal requirement for UK motorists.

But cover can be extended beyond this up to "fully comprehensive" insurance, which protects against monetary loss for damage caused in an accident, with or without another car, and other circumstances such as fire and theft.

Car insurance costs are based on many factors, including the age and sex of the driver, where they live, how powerful the car is, how much it is normally driven, and even its colour. It is generally cheaper for women than men, and more expensive for young drivers.

If no claim is made on a car insurance policy over a period, then a no-claims bonus builds up reducing the amount charged on insurance policies.
    • Get a car insurance quote

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