Fully comprehensive car insurance explained

If you are looking for car insurance, you will need to know about the different levels of insurance cover available. Car insurance is a legal requirement to drive on UK roads and third party insurance provides the minimal level of cover, while fully comprehensive insurance offers the highest level of cover and, in some cases, greater peace of mind. If you want to know more about fully comprehensive insurance, then read on for our detailed guide.

What is fully comprehensive car insurance?

When buying car insurance, there are three types of policy that you can choose from, depending on the type of coverage you want. These levels are defined as follows:

• Third party is the most basic level of car insurance and the minimum legal requirement in the UK. With third party insurance you are covered for injury to someone else (known as the third party) or their property (for instance a vehicle or building) in the event of an accident.

• Third party, fire and theft offers mid-level insurance coverage. With this type of insurance you will have the same coverage as that as third party insurance but, in addition, you will be covered for the cost of repairing your car if damaged in fire or replacing your car if it is stolen.

• Fully comprehensive provides the highest level of protection that you can have. This type of insurance covers you for injuries sustained by a third party, damage to their property, the cost of repairing your car if damaged in fire, or the cost of replacement if your car is stolen. You will have protection irrespective of who is at fault, so you will be covered in cases where fault cannot be determined.

What is covered under comprehensive car insurance?

When deciding on the appropriate amount of cover, it’s important to understand what you get when you opt for fully comprehensive car insurance cover. The table below shows what is covered and what is not covered when you take out a typical fully comprehensive car insurance policy.

Typically covered	Typically not covered as standard
Damage to third party cars	General wear or tear
Injuries sustained by a third party	Driving with an invalid driving licence
Fire damage to your car	Damage or injuries caused when driving under the influence of alcohol or drugs
Theft of your car	Theft caused by carelessness
Damage caused by flooding	Damage by vandalism (but check your policy)
The full cost of repairs if your car is damaged
Accidental damage to your car
Personal belongings cover
Windscreen and glass cover
Replacement locks and keys cover

It’s important to note that insurance policies do vary, and these lists are for a typical policy. It’s worth checking with your insurance provider for further details.

What are potential add-ons to fully comprehensive insurance cover?

There are plenty of add-ons, or optional extras, that you can add to your car insurance policy for an additional cost. Typical add-ons available with fully comprehensive car insurance policies are listed below.

Breakdown cover

With this type of protection, you are typically covered for the cost of vehicle recovery in the event of a breakdown due to mechanical failure. There are different types of breakdown cover available, but bear in mind that it is often worth shopping around since it might be possible to get a cheaper deal if you purchase it separately, depending on the type of cover you need. The main types of breakdown cover are shown below:

• Roadside assistance: This covers the cost of vehicle recovery and transportation to a garage nearby. The cost of repairs and parts are not covered with this type of policy.
• National recovery: The main difference between this type of cover and roadside assistance is that your vehicle can be taken to a garage anywhere in the UK. This is useful cover if you regularly travel long distances in the UK.
• At home or on drive cover: Covers the cost if your vehicle breaks down at home, as opposed to on the road. If necessary, the cost of transporting your car to a local garage is also covered.
• Onward journey cover: If your car cannot be repaired on the roadside, you will be covered for any costs associated with onward travel, such as a taxi or public transportation.
• European breakdown cover: Covers the cost of breakdown anywhere in Europe. This type of cover can be customised to suit your particular circumstances. Do pay attention to the small print, as there can be a lot of variation in terms of what is and what isn’t included.
• Personal cover: With this type of add-on, you are covered for any car that you are driving. In effect, this type of insurance covers the driver rather than the vehicle. This type of breakdown protection is useful if you regularly drive hire vehicles.

Courtesy or hire car cover

If your car is temporarily out of action, stolen or written off, you are covered for the cost of a temporary replacement. This type of cover is good if you rely on your car on a daily basis, but do read the small print.

While many comprehensive policies will include a courtesy car as standard, it will only kick-in if your car is in an accident and can be prepared. If you’d need a temporary replacement vehicle in the event your car is stolen or written-off, you’d likely need to look into additional hire car cover. 

Things to look out for include the cover limit, which can vary from 14 to 60 days. This could be an issue in the case of time consuming repairs. And while courtesy car cover will normally provide a small hatchback, it is possible to find add-on hire car policies that will send out a car the same size as your own.

Enhanced keys cover

While most comprehensive car insurance policies include replacement locks and keys cover as standard, you can get additional cover that will raise the claims limit associated with such an event. Some keycare policies also cover house and business keys, alongside ignition devices.

No claims bonus protection 

Insurance providers will give you a discount on your insurance premium based on the number of years you have had a car insurance policy in your name without making a claim. The greater the number of years, the bigger the discount. However, in the event of a claim your insurance provider will typically increase your insurance premium and you will lose your discount.

This discount, or no claims bonus, is so highly prized that you can purchase additional insurance for its protection. With no claims bonus protection, you will retain the original level of years accrued at the point of renewal, even if you made a claim. However, you may need to fulfil certain criteria to be eligible, such as accumulating a specific amount of years without making a claim. Also, there may be a limit on the number of claims of this type that you can make.

Legal cover 

Motor legal protection will cover the cost of any legal expenses accrued while pursuing a claim for expenses not covered by your main car insurance policy. This is typically used in the event of an accident that wasn’t your fault. For a claim to be accepted, your insurer needs to be convinced that you have a reasonable chance of success with your legal action. There will also be limits on the solicitor’s rates.

Wrong fuel cover

Putting the wrong fuel in your car, or misfuelling, can be an expensive mistake to make, in some cases costing as much as £1,000. With wrong fuel cover you will be typically covered for the cost of draining and cleaning your tank and the additional repairs as and where required.

If you already have breakdown cover, check this insurance policy since this may already be included as part of the breakdown package. If you are thinking about purchasing this cover as an add-on, things to look out for include the cover limit, and the accidental damage excess if you make a claim.

Car excess cover

When you buy a car insurance policy you usually have to agree to pay a compulsory excess towards the cost incurred in the event of an insurance claim. With car excess cover, you are covered in the event that you have to make a claim because the excess is paid by the insurance provider.

In the event of a claim, you will have to pay the excess in the first instance, then apply for a reimbursement from the insurance provider. You will therefore need to make sure you have enough funds to cover any upfront costs.

How much does comprehensive car insurance cost?

You may think that selecting a policy with less coverage will be cheaper, but in fact this is not necessarily the case. Insurance providers recognise that high risk drivers are more likely to select third party or third party fire and theft insurance policies in a bid to reduce their premiums. As a result, an insurance provider may charge you more for taking out this type of cover, especially if you have a claim record. It’s therefore worth checking all of the possible options before making a commitment. The average cost of the different types of cover are shown below:

Type of cover	Average cost
Third party	£795.91
Third party, fire and theft	£938.55
Fully comprehensive	£671.60

How to find fully comprehensive insurance cover

Looking for the best car insurance deal is the same as looking for the best deal for any other financial product. Quotes can vary over a wide range so it is definitely worth shopping around. Do some market research on the best car insurance deals available.

Check comparison sites and read any credible reviews. Remember that you are looking for the best fully comprehensive insurance cover for your specific circumstances, which might not necessarily be the cheapest.

As part of your decision making process, make sure you understand what is included in the cover. Find out about any additional add-ons that are available and check the additional fees. It may be cheaper to purchase add-ons such as breakdown cover and personal accident cover elsewhere so it’s worth comparing these fees with standalone products.

What affects the price of fully comprehensive insurance?

Insurance providers use a diverse range of factors to work out the cost of your insurance premiums. These factors can be classified as personal, financial or automotive.

Personal

• Age: drivers under the age of 25 tend to be involved in more road traffic accidents than drivers in other age groups. As a result, new driver insurance premiums tend to be more expensive. Alternatively, insurance premiums increase for drivers aged 70 and above. As with younger drivers, this is due to the increased likelihood of being involved in a car accident.

• Gender: there is evidence to suggest that women still receive cheaper insurance quotes, despite the fact that it is illegal for insurance companies to use gender as a criteria for working out insurance premiums. In addition, some insurance companies continue to use marketing campaigns in an attempt to target female drivers.

• Address: where you live is a key risk factor because the majority of drivers use and park their cars close to home. The level of risk will depend on the following characteristics:
  • Population density – Car owners living in built up urban areas tend to pay higher premiums than those living in the suburbs or the countryside. This is because the number of thefts and car accidents tends to be higher in more densely populated areas.
  • Traffic density and trends – The higher the number of vehicles on the road, the higher the risk of accidents and insurance claims. Also, insurance providers will check for the presence of traffic systems such as roundabouts and crossroads which pose an increased risk.
  • Number of accidents – Insurance providers will look at the number of claims made in your area and use this to assess the risk for drivers living in that area.
  • Crime rates – Unsurprisingly, drivers living in areas with high crime rates will tend to pay more for car insurance. In particular, high instances of theft and vandalism will increase premiums.
  • Uninsured drivers – Unfortunately, drivers living areas with high numbers of uninsured drivers could potentially pay more for car insurance. An increased risk of an accident with an uninsured driver could result in a large insurance payout, even if the insured driver is not at fault.
  • Number of fraudulent claims – A high number of fraudulent claims in a specific area could be an indication of an ongoing trend.

• Occupation: drivers with occupations such as anything secretarial or clerical, personal assistants, teachers, librarians, management professionals, insurance workers or local government employees are classified as low risk because they tend to be safe and sensible drivers. Insurance providers tend to be put off by occupations such as professional footballers, waiters, bar staff, builders and construction workers.

• Driving history: insurance providers will check for penalty points, suspensions, convictions and previous insurance claims. Evidence of irresponsible driving could increase the price of your premium, and in more serious cases could lead to a rejection of your application.

Financial

• Excess chosen: insurance providers will typically set a compulsory excess, but you can decide on an additional voluntary excess in exchange for a reduction in your insurance premium. You are expected to pay an excess on any insurance claim even if you are not at fault. Make sure the excess you decide on is an amount you can comfortably afford.

• Payment method: you can purchase your car insurance annually in the form of a one-off payment, or monthly by direct debit. Paying by direct debit is more convenient, but like-for-like is more expensive than the one off payment over 12 months.
  
  When you pay in monthly instalments, you are taking out a 12-month loan with the insurance company. You will have to pay interest on the amount borrowed, which increases the total amount paid. As a result, a one-off annual payment in advance is cheaper because you don’t pay interest.

• Credit history and score: if you have a poor credit history, you are more likely to pay more for your car insurance than someone with a good credit history, all things being equal. Part of the reason is that car insurance is treated like any other financial product and someone with bad credit is more likely to miss monthly payments. While choosing to pay annually is a possible solution, an insurer may charge more anyway. This is because a driver with bad credit is statistically more likely to make an insurance claim.

Automotive

• Model and year: as a general rule of thumb, the more expensive and powerful the car, the more it will cost to insure. Cars in lower insurance groups tend to be cheaper to insure because they are smaller, less powerful and the replacement parts are cheaper.
  
  Newer cars cost more to repair and replace and are therefore more expensive to insure. So, when an insurance provider is assessing cars of similar make and model, the cost of insurance could differ depending on their age, even if they are members of the same car insurance group.

• Mileage: cars with a high annual mileage spend more time on the road than those with a lower mileage and are therefore at higher risk of being involved in an accident. So, the lower the mileage, the lower the insurance premium. Some insurance providers offer specialist low-mileage insurance policies. These are worth looking into if your mileage is less than the average 7,400 miles a year.

Is fully comprehensive insurance right for me?

At the end of the day, it comes down to personal choice, but fully comprehensive cover has an important advantage over the other two options that you need to be aware of before making a decision.

Fully comprehensive cover is the only option that protects you against damage to your own car in the event of an accident, regardless of who was at fault. With third party insurance cover, you would have to pay for all repairs to your own car in the event of an accident unless you could prove that the other party was to blame. With fully comprehensive cover, you can make a claim for damages to your car without the added complication of trying to prove who was at fault.

This is a crucial difference, because there are many unforeseen situations that can happen on the road which result in damage to your car. Circumstances beyond your control, such as an accident involving a wild animal, damage to your car while parked, an accident where the driver at fault leaves the scene, or an accident with an uninsured driver, are all extremely common occurrences. In all of these circumstances you would have to take responsibility for the damage to your car, but with fully comprehensive cover you could make an insurance claim.

Frequently asked questions about fully comprehensive car insurance

Can I drive other cars and be covered by fully comprehensive insurance?

No, it doesn’t. A fully comprehensive insurance policy provides cover for you to drive a specific car. If you have this type of cover, you will only be insured to drive the car stated in the insurance documents.

The only exception to this is if you and your car are named as part of a fully comprehensive multi-car insurance policy. This type of policy includes multiple drivers and multiple cars, the main advantage being that it’s possible to buy this type of insurance at a discount when compared to individual car insurance policies.

If you are included on a multi-car insurance policy, you will be able to drive any car included in the policy where you are registered as either the main driver or an additional driver.

I’m a young driver, can I get fully comprehensive insurance?

Yes you can. Young drivers have the option to choose the same types of coverage that are available to older drivers.