Best car insurance

Car insurance works by paying a monthly or yearly premium to your provider in return for financial protection if your car is damaged, stolen or involved in an accident. This helps cover expensive repairs and other costs. Policies vary in the level of cover they offer ranging from Third Party to Comprehensive.

The cost of your car insurance premium is calculated on the probability of risk. Insurers assess various factors including your age and occupation, make and model of your vehicle and whether you've made claims on car insurance before.

There are several ways to get cheaper car insurance. These include protecting your no-claims bonus, bundling insurance policies with the same provider and limiting your annual mileage. Shopping around is a great way to find cheaper car insurance, so compare providers and find the best deal.

Car insurance excess is the amount you'll pay towards any claim you make. There are two types of excess: compulsory and voluntary. Your insurer decides the compulsory excess and you choose your voluntary excess amount. Selecting a higher voluntary excess can lower your premiums, but it should only be an amount you know you can pay if you need to make a claim.

There are three main levels of car insurance cover in the UK. Third party only is the legal minimum and covers damage or injury you cause to other people and their property. Third party, fire and theft adds cover for your own car if it’s stolen or damaged by fire. Comprehensive cover is the most extensive option and also covers damage to your own vehicle, even if you’re at fault.

Not necessarily. Comprehensive car insurance is often competitively priced and can sometimes cost less than third party cover. This is because drivers who choose comprehensive cover tend to be statistically lower risk. It’s always worth comparing all levels of cover when shopping around.