Motor insurance, unlike many other forms of insurance, is something you cannot get out of - not without breaking the law…
Whereas you might not want to insure your collection of StarWars action figures, legally you must have insurance cover to drive a car. This is so that if you are involved in an accident, there will be financial cover for damage or injuries that occur.
There are 3 types of motor insurance:-
1) Third Party
2) Third Party, Fire and Theft
3) Comprehensive (often referred to as "Fully Comprehensive" or "Fully Comp")
Third Party
At a minimum you have to provide insurance cover to others - motorists, pedestrians, cyclists etc - and their property - car, fence, lamppost etc. They are the third party. with this type of insurance you and your property (your car for example), are not covered. So if you are involved in an accident that is all, or partially, your fault, then you won't get any money back to pay any medical expenses or to fix or replace your car. This is the reason that it is the cheapest form of motor insurance.
Third Party, Fire and Theft
The next cheapest form of motor insurance is 'Third Party, Fire and Theft' - simply it gives you cover if your car catches fire and is damaged or if it is stolen. There are certain restrictions to this so you should be very careful when taking out this (or any insurance for that matter) type of insurance to read and understand the small print.
Comprehensive
This is the most expensive type of motor insurance. It is the most expensive as it offers the most cover. It will cover you and your car in many situations. Generally the more expensive the car, the more sense it makes to have this type of insurance. Imagine having a big shunt a brand new Merc SL that you've just bought with your lottery winnings, wrapping it 'round a lamppost, then realising that you've only got Third Party insurance … your sense of humour failure will be related to how big your lottery win was, as you'll be getting nothing back from your insurance company.
With Comprehensive insurance, you are covered even if the accident is your fault.
Excess
Not the type of excess that you'll enjoy. This is the amount of money that you'll have pay if you make an insurance claim if you are fully or partially at fault in the accident or in the event of a theft or vandalism claim.
Obviously you need to keep an eye on this as the bigger your excess, the less you'll get back when you make a claim.
For example, you have a bump and it needs a new front wing and a bit of painting to repair it. This is going to cost £800 but your excess is £300, so you have to pay out £300 and your insurance company will cover the remaining £500. In the case of relatively low cost repairs you may even be better off paying the whole amount as your insurance premium the following year will be more expensive if you make a claim ( unless you have a policy with 'protected no-claims bonus' , which is very unlikely for young drivers).
You can often reduce your insurance premium by accepting a higher excess as you'll pay more in the event of any claim but you need to weigh this up when choosing your insurance policy.
Insurance information confirmed by 
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