Car insurance

There are three main levels of cover to choose from:

• Third-party is the lowest level of cover available. It insures you against damage caused to someone else or their property, including your passengers, as the result of an accident. It doesn't cover your car against repair or replacement.
• Third-party, fire and theft offers the same level of cover as third-party, but also covers your car for repair or replacement if it's stolen or damaged by fire.
• Comprehensive offers the most protection, covering you and your car, as well as other people and their property.

We've covered the three levels of cover in more detail in our guide to insurance policy types.

A standard policy will usually cover a single car for 12 months. But, depending on your needs, other types are available. These include:

• Multi-car: Insure all the cars at your address and get a discount.
• Temporary: Short-term cover from one to 28 days.
• Black box/telematics: Uses an app on your phone or box installed in your car to monitor your driving. Information such as when you drive, your speed, braking and handling is captured and shared with the insurance company to base policy prices on.
• Learner: Cover for those learning to drive in their own or someone else's car.
• Classic car: Cover specifically designed for owners of classic cars. For insurance purposes, a classic car can be any car that's older than 15 years.
• Business: If you use your car for more than just domestic use, including business driving away from your normal place of work, you’ll need a business policy.

With the average comprehensive policy now costing £847 a year**, it’s more important than ever to shop around and compare prices.

Even while you compare, there are things you can change that may help you get cheaper car insurance:

• Consider the car you drive: More powerful cars tend to have more expensive accidents, can be pricier to repair and fall into higher insurance groups. Older cars with more miles on the clock, smaller engines and lower price tags usually fall into lower insurance groups.
• Increase your voluntary excess: Prices may change if you’re willing to a pay a little more towards any claims. Make sure to also consider any compulsory excess listed on a policy, as you’ll need to have funds available to cover the total policy excess.
• Add a named driver: Adding an experienced driver to your policy can lower prices. You should always list the person who drives the car most often as the main driver, and any occasional drivers as additional.
• Extra security: Increasing the security of your car above the standard manufacturer level can help, but even basics like parking off-road can affect prices.
• No-claims bonus: Building up a no-claims bonus can help shave pounds off your premium.
• Telematics: If you’re a young or inexperienced driver, black box policies can make insurance more affordable.