What Kind of Car Insurance Do I Need?

Understanding what kind of car insurance you need can seem complex. With so many companies offering so many packages with different names, it can feel as if you are missing out.

Our team at Riviera Insurance are here to help. In this article, we break down your options into four easy-to-understand choices.

Car insurance types come in three main categories (four, counting SORN, which is only applicable under specific circumstances):

• Third-Party Only Car Insurance
• Third-Party, Fire, and Theft Car Insurance
• Comprehensive Car Insurance
• Uninsured\SORN
• Specialist Policies

Third-party only insurance is the legal minimum required to drive a vehicle in the UK. It is often the cheapest form of insurance when it comes to monthly payments, but this is because of how little it covers.

• Damages inflicted upon third parties in the event that you have an accident, causing damage or injury to another.
  • It will not cover any damages to you. This means that you could end up paying out of pocket for very expensive repairs without any financial aid.

• People with inexpensive vehicles
• People who are looking to make the bare minimum monthly payments

In addition to covering damages against third parties in accidents, it also covers you in the event of fire damage or the theft of your car. It still does not cover any accidental damages for the policyholder if they are the cause of an accident.

• Damages against third parties in accidents.
• Damage against the policyholder in the event of fire damage or the theft of their car.
  • It does not cover any accidental damages for the policyholder if they are the cause of an accident.

• People looking for low-cost monthly premiums, but who still want to cover the worst-case scenarios.
• Those with vehicles at risk of fire or theft.

Comprehensive is the highest level of cover available for motorists in the UK. As the name suggests, it includes everything covered under third-party, fire, and theft. In addition, you gain protection for your vehicle, even if an accident is your fault.

• Damage to your own vehicle, regardless of who is at fault.
• Fire, theft, and vandalism.
• Accidental damage.
• Personal injury (in some policies).
• Windscreen repair in most cases
• Courtesy car (depending on the provider).
• Legal expenses (in some packages).

• Drivers who own a high-value or new car
• People who drive regularly or long distances
• Those who want the most complete financial protection
• People who can’t afford to be without a car after an accident

Under normal circumstances, it is illegal to own a vehicle without insurance.

In order to legally own an uninsured vehicle, you must register a Statutory Off Road Notification (SORN). This is a legal notification to the government. It states that your vehicle is uninsured and does not need to be because it will not be going on the road.

It is legal to own an uninsured SORN vehicle, but it is illegal to drive it.

• Nothing: Being uninsured with a SORN covers no damage to your vehicle under any circumstances; it is illegal to drive your vehicle with a SORN.

• Drivers who own a high-value or new car
• People who drive regularly or long distances
• Those who want the most complete financial protection
• People who can’t afford to be without a car after an accident

While these are the main types of car insurance (and SORN), there are also a number of specialist policies. These policies are for specific types of policyholders and are tailored to their specific needs. These include:

• Convicted Driver Insurance
• Learner Driver Insurance
• Super Car Insurance
• Sports and Performance Car Insurance
• Motorhome Insurance
• Guaranteed Asset Protection (GAP) Insurance
• Short-Term Car Insurance
• Van Insurance
• Breakdown Insurance

This is to name a few of the specialist policies out there. If you think you need a special insurance package, check out our guide to specialist car insurance.