Car insurance is essentially a contractual promise of cover guaranteed by an insurer.
There are three main types of car insurance policies in the UK:
Third party,✔ fire and theft
The different policies have varying levels of cover.
Comprehensive car insurance:💎
this covers you for damage to your car as well as damage to other cars which you are involved in a collision with. It covers fire, theft and accidents. These policies are usually the most expensive.
This is the minimum level of cover needed in the UK. With a third party insurance your car int covered but anyone you are involved in a collision with is covered. It will cover them for damage to their car or themselves. Uniquely this cover will cover your passengers and the passengers of anyone you hit but not you.
Third party insurance used to be cheap but now it's actually the most expensive in the UK due to too many people opting for it as a way to save money. These people eventually made claims which increased the risk for the insurers and their only choice was too raise prices.
Third party, fire and theft:💎
This policy covers just the same as third party but it also covers if your own car is losted due to fire or theft. It is of course an added benefit and may cost slightly more than third party due t the increased exposure to the insurer.
Insurers will also provide extras which you can buy such as breakdown cover, legal cover and courtesy cars.
You can also get GAP insurance which covers the difference between the value of your car at a time of claim and the price which you paid for it.