Car insurance – the different types explained

Car insurance covers a wide range of policies, from bare-bones options to cover with all the bells and whistles.

Added to that are the specialist policies launched by insurers, targeting everyone from classic car enthusiasts to electric vehicle converts.

Here, we unravel the different types of car insurance and explain who they're for, so you can avoid spending money on cover you don't need.

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Comprehensive car insurance

Comprehensive car insurance is the widest level of coverage available. It includes third-party cover and fire and theft, and also covers wider damage to your vehicle.

Some policies will also cover you to drive the cars of others, but usually only up to third-party level. If you want to be fully covered to drive someone else's car, you need to be a named driver on their policy.

Crucially, not all comprehensive car insurance is equal. Our annual rating of the best car insurance found huge differences between the best and worst comprehensive policies, as well as between the customer service of the insurers that offer them.

Third-party car insurance

Third-party is the lowest level of cover. This is the minimum level of cover you need to be driving legally. 

It covers you if you're liable for damage or harm done while driving. That includes damage or injury to other drivers and their vehicles, as well as accidental damage to lampposts and walls. 

Third party does not cover your own car – you'll have to foot the bill yourself if your car is damaged, stolen or vandalised.

Third-party, fire and theft covers everything included in third-party cover, but it will also pay to repair or replace your car if it's stolen or damaged by fire.

Why Which? only rates comprehensive car insurance

Dean Sobers, Which? car insurance expert, says:

'In our ratings of car insurance policies, we focus on "comprehensive" insurance – which means policies that include accidental damage cover, while also affording protection for third-party, fire and theft claims. 

'We don’t compare policies offering less cover than this, such as third-party-only policies (TP), and third-party, fire and theft (TPF&T) cover.

'The simple reason for this is that while those variants allow you to drive legally, they don’t really protect your car – with TP just covering your liabilities towards others and TPF&T adding protection in a few other circumstances.

'But by some margin, the most likely use you’ll have for insurance is if your car is damaged in a collision, with nearly half of claimants we quizzed in our last survey reporting making an accidental damage claim. Only comprehensive cover offers this.'   

• Find out more: Best car insurance companies in the UK 2026 .

Over-50s car insurance

If you’re aged over 50, you don’t need a dedicated over-50s car insurance policy: you should still have access to comprehensive policies from a wide range of insurers, at competitive prices.

As you turn 70, however, you may find prices start to rise, meaning you’ll need to shop around more, and you may exceed some insurers' maximum age limits.

We’ve listed insurers’ age limits and average quotes by age in our guide to over-50s car insurance.

Learner and new driver insurance

While learning to drive, you could get a dedicated learner driver car insurance policy or become a named driver on someone else’s policy.

If you're driving your own car, a learner policy may be your only option. If you're sharing a car with a licenced driver, it will probably be most straightforward (and cheapest) to be added to their policy as a named driver.

Black box car insurance

Once you’ve qualified, you’re likely to find that premiums are high, and that the cheapest policies are ‘black box’ or ‘telematics’ policies.

These policies use GPS technology to monitor your driving, with some scoring factors such as your acceleration and cornering, while others focus on your mileage.

These policies used to involve a device being installed in your car; nowadays, you may simply have to download an app onto your phone.

Black box and telematics policies could also be useful if you only occasionally use your car, as regular car insurance policies assume you drive an average number of miles and price accordingly.

Multi-car insurance

If there’s more than one vehicle at your address, multi-car insurance could help you save money and time spent on admin.

These car insurance policies cover all cars at a single address, and in some cases, family members living elsewhere, such as a child at university.

Our guide to multi-car insurance lists insurers that offer discounts for insuring more than one vehicle.

Electric car insurance

EV drivers don’t need to buy specialist electric car insurance (although some insurers only deal with EVs), as standard comprehensive car insurance also covers EVs.

However, EV drivers should check if policies include features such as protection for chargers and recovery to the nearest charging point.

Our guide to the best electric car insurance policies on their EV-specific cover.

Temporary car insurance

Driving a friend’s car or trying out a new car? 

If you’re already insured, you may already be covered (as listed in our car insurance reviews), but temporary car insurance may provide more protection.

Our guide to temporary car insurance goes through your options. 

We also have separate ratings for car hire excess insurance, if you’re renting a vehicle.

Overseas car insurance

If you’re planning a road trip across the Channel, it’s vital you check what cover you have.

Policies will automatically cover a trip to Europe, but you may only get third-party cover, depending on your insurer.

You could ask your insurer to upgrade your cover for the duration of the trip or buy separate temporary car insurance.

Classic car insurance

If you own a classic car – generally defined as being more than 15 years old and with a value of at least £15,000 – classic car insurance could be for you.

It can prove cheaper than the equivalent comprehensive car insurance policies, as it’s intended for vehicles that are rarely used and well-maintained.

While some mainstream insurers offer this cover, it’s also available from specialist insurers, brokers and car clubs. Read more in our guide to classic car insurance.

Gap insurance

Guaranteed asset protection (Gap) insurance is an extra policy that you can get on top of standard car insurance if you have a brand-new car.

It’s intended to cover the difference between what your car insurer would pay out if your car were stolen or written off, and the price you paid for your car, which is typically higher.

Gap insurance is particularly important if you’ve bought your car on finance; our gap insurance guide explains why.

Car insurance add-ons

When buying car insurance, you may be given the option to buy certain add-on types of insurance.

These include breakdown cover, enhanced courtesy car cover, key cover, legal expenses cover and personal accident insurance.

Our guide to car insurance add-ons explains how these work and whether you really need them.