The different policies available

Third Party Insurance: Before using any vehicle in a public place, every motorist needs at least third party motor insurance. This is to make sure that, in the event of an accident; there is financial compensation available to cover any injuries caused to other people or damage to other people's property.

A third party policy is the minimum legal requirement in the United Kingdom. This level of cover ensures that compensation is available in respect of injury to other people (including your passengers) or damage to other peoples' property as a result of an accident caused by you. It does not however cover any costs you might incur as the result of an accident.

This policy can be embellished somewhat to cover other eventualities. Third party fire and theft is the obvious upgrade from a basic third party policy and as the nature of the title suggests this level of cover would ensure that should your car be stolen or set on fire in some way then you would be able to claim either for the cost of replacing your vehicle or for any repairs that might be required as a result of a fire.

For those drivers on a budget or driving an older car, a third party fire and theft policy is generally considered sufficient cover. If you have a no claims bonus then a policy of this nature is the cheapest available. New young drivers invariably purchase second hand vehicles and since they have an untarnished accident record their no claims bonus is intact which means a third party fire and theft policy is the cheapest means of getting them out onto the road.