Understanding the Different Types of Motor Insurance

Choosing the right motor insurance can be difficult due to the sheer amount of cover available. From third party to GAP insurance, how can you tell which one is right for you? To help you make a decision, below you’ll discover more about the different types on offer.

What different types are available?

There’s numerous types of car insurance available in the UK, but the three main ones include:


Third party

Third party including fire and theft

Many drivers assume when you take out any type of car insurance, it automatically covers everything, including theft and fire. However, the majority of insurers require you to pay extra if you want to protect against fire and theft, unless you opt for the comprehensive cover option.

Comprehensive cover is typically the most extensive and best option if you can afford it. Not only does it cover third party, fire and theft, but it also covers any damage done to your own vehicle.

Even when looking into the above types of insurance, it’s important to compare different insurers. Each has their own terms and conditions you need to be aware of and some insurers will be more expensive than others. It’s also worth noting there’s a fourth type of cover available which many drivers are unaware of – GAP insurance.

What is GAP insurance?

GAP is short for Guaranteed Asset Protection. This type of insurance is designed to provide you with the funds needed to cover the difference between how much the insurer is willing to pay and what you originally paid for the car in case of a write off. There’s actually different types of this cover available, so it is worth looking into each one to determine which would be most beneficial.

One of the biggest problems drivers have when their car gets written off, is they don’t receive enough money from the insurer to afford a replacement. GAP insurance really helps to limit the financial damage caused by an accident, ensuring you can either replace the car with the same make and model, or upgrade to a new car with the same value you originally paid.

Overall, when trying to decide which type of motor insurance to invest in, you need to consider how much spare cash you have available if anything does go wrong. Always opt for the most comprehensive cover you can afford and if you haven’t already, you might want to consider taking out GAP insurance too.