Car insurance in the UK falls into three main cover categories – Comprehensive (often incorrectly referred to 'fully comprehensive'), Third Party, Fire and Theft, and probably the least common, Third Party Only. There are other types of cover available in certain circumstances, for example if your car is off the road for a period time, some insurers may offer ‘laid up’ cover.

The three main cover types are:
If you use or keep a motor vehicle on a public highway, you have legal obligation (a duty of care) to other road users. If you are in some way negligent, resulting in injury to a third party and/or damage to their property you are legally liable for their resultant damages.

A Third Party insurance policy will pay the costs of any compensation you are legally liable for in respect of damage to third party’s property and/or third party injuries.

It is important to understand that a Third Party insurance policy does not provide any cover for loss or damage to your own vehicle, although if you are involved in an accident with another party who is liable, you may be able to claim for damage to your car from the other party’s insurance company.

UK Road Traffic Act legislation requires that all motor vehicles used on a public highway must have adequate Third Party insurance. TOP
 
Essentially, as the name suggests, Third Party Fire and Theft cover is Third Party insurance (as described above) plus cover for your own vehicle in the event of loss or damage to it resulting from fire or theft.

Many policies now carry a specific excess for theft (and/or fire) claims – usually in the region of £100 - so check with the insurer the level of any such excess. An excess is the amount you need to pay towards the cost of claim. For example, if your policy carries a £100 excess and you are claiming £500 for damage to your car, you will only receive £400 in settlement. TOP
 
Comprehensive cover offers the widest of the three types of car insurance described here. As you would expect, Third Party insurance is included, but the largest difference between Comprehensive cover and the other two types of cover is in relation to damage to your own car.

Comprehensive policies cover accidental loss or damage to your car, including loss of damage by fire and/or theft. For example, if your car is damaged in a motor accident, a Comprehensive policy will pay for the cost of the repairs to your car, or a replacement car should the car be beyond economical repair (commonly known as a ‘write-off’ or ‘total loss’). Remember if your policy has an excess, any settlement will be reduced by the amount of the excess. TOP