What Does Car Insurance Cover UK 2026

Last reviewed: 26 April 2026

The three tiers and what each one covers

UK car insurance comes in three tiers, and understanding what each covers is the starting point for any purchase decision.

Third Party Only (TPO) is the minimum the law requires. The Road Traffic Act 1988, section 143 states that every vehicle driven on a UK public road must be insured at minimum against the driver's liability to other people, covering injury to third parties and damage to other vehicles or property. TPO covers nothing about your own vehicle. If you cause an accident and damage your own car, your repair costs are yours to bear.

Third Party Fire and Theft (TPFT) adds two specific protections for your own vehicle on top of the TPO base: cover if your vehicle is damaged or destroyed by fire, and cover if it is stolen. TPFT does not cover accidental damage to your vehicle from a collision.

Comprehensive is the highest tier and the most commonly purchased, the ABI reports approximately 85 percent of UK private motor policies are Comprehensive as of 2025. Comprehensive adds accidental damage to your own vehicle, regardless of whether you were at fault. If you cause an accident and damage your car, Comprehensive covers the repair.

What Comprehensive typically includes as standard

A standard Comprehensive policy from most UK FCA-authorised motor insurers includes the following as standard inclusions:

Third-party liability, injury to others and damage to their property. Fire and theft of your own vehicle. Accidental damage to your own vehicle, subject to your excess amounts. Windscreen cover, repair of chips and cracks, and replacement if needed (usually subject to a separate windscreen excess, often lower than the main excess). Personal accident benefit, a lump sum if you are killed or permanently disabled as a direct result of a road accident, typically £5,000 to £10,000. Foreign travel, Third Party cover for driving in EU and listed countries for up to 90 days, with some policies providing full Comprehensive cover abroad.

Not all policies include the same standard features. The Insurance Product Information Document (IPID), a standardised two-page summary required by the FCA for all motor insurance products, sets out the key inclusions and exclusions in a consistent format. Always read the IPID before purchasing.

What is typically NOT covered as standard

Several important protections are commonly misunderstood to be part of Comprehensive cover, when in fact they are paid add-ons or separate products entirely.

Breakdown cover is not motor insurance. It is a separate product covering mechanical failure that leaves the vehicle unable to drive. Most Comprehensive policies do not include breakdown cover as standard, it is a paid add-on. The exception is U K Insurance Limited's Direct Line (FRN 202810), which includes breakdown cover in its standard Comprehensive price.

Motor legal protection covers legal costs for pursuing uninsured losses from an at-fault third party. It is not a standard Comprehensive inclusion, it is a paid add-on.

Tools and equipment in a vehicle are not covered by standard motor insurance. A contractor whose tools are stolen from their van needs a separate goods-in-transit or trade tools policy.

Personal belongings in the vehicle, a laptop left on the back seat, for example, are generally not covered by motor insurance. They may be covered under home contents insurance subject to specific policy conditions.

Courtesy car while your vehicle is being repaired is commonly included in Comprehensive policies but only as a standard small saloon while your vehicle is with an approved network repairer following an insured claim. A like-for-like replacement vehicle, or a hire car while you are waiting for a write-off settlement, is typically a paid add-on.

The excess: what you pay when making a claim

Every motor insurance policy carries an excess, the amount you pay yourself toward any claim before the insurer contributes. The excess has two components.

The compulsory excess is set by the insurer based on your risk profile and cannot be reduced. High-risk profiles, young drivers, vehicles in high insurance groups, drivers with recent claims, carry higher compulsory excesses.

The voluntary excess is an additional amount you choose at quotation. Selecting a higher voluntary excess reduces the annual premium but increases your out-of-pocket cost if you claim. Your total excess at claim time is compulsory plus voluntary.

The excess applies per claim. If your Comprehensive policy carries a £200 compulsory excess and a £150 voluntary excess, any claim requires you to fund the first £350 of repair or replacement costs before the insurer contributes.

How Insurance Premium Tax affects the price

Insurance Premium Tax at 12 percent (HMRC, gov.uk) is applied to all UK motor insurance premiums. It is included in the price displayed to consumers, the quoted price is always the all-inclusive price with IPT already applied. IPT cannot be avoided or reclaimed by most consumers, and it applies equally across all three cover tiers.

Key Figures

How to check exactly what your policy covers

Every UK motor insurance policy sold since October 2018 must come with an Insurance Product Information Document (IPID), a standardised two-page summary required by the FCA. The IPID presents the key inclusions, exclusions, and conditions of the policy in a consistent format designed to make comparison between policies straightforward.

Before purchasing, read the IPID for the specific policy. The standard policy wording, a longer document, contains the full legal terms. The IPID provides a quick reference for inclusions and exclusions.

If you are unsure whether a specific situation is covered, ask the insurer directly before an incident arises. Insurers are required under FCA ICOBS rules to provide clear and accurate pre-contractual information. A written confirmation from the insurer on a specific coverage question provides documentation you can rely on if a dispute arises later. For specialist risk profiles, classic vehicles, modified cars, high-value vehicles, a BIBA-registered specialist broker (biba.org.uk/find-insurance/) can advise on which policy terms are most appropriate for the specific exposure.

Frequently Asked Questions

Does car insurance cover breakdown?

Breakdown cover is not included in standard Comprehensive motor insurance policies at most insurers. It is a separate product covering mechanical failure. One notable exception is Direct Line (FRN 202810), which includes breakdown cover as standard in its Comprehensive price. All others treat breakdown as a paid add-on.

Does car insurance cover personal belongings left in the car?

Motor insurance policies generally do not cover personal property left in the vehicle. A laptop, bag, or other personal item stolen from a car is typically covered, if at all, under home contents insurance, subject to specific policy conditions. Check your home contents policy for away-from-home personal property cover.

Is Third Party always cheaper than Comprehensive?

Not always. Due to a statistical pattern called adverse selection, where higher-risk drivers disproportionately choose Third Party, the actuarial cost of the Third Party tier can exceed Comprehensive for the same driver profile. Always run quotes across all three tiers before assuming any tier is cheapest.

What is the excess on a Comprehensive car insurance policy?

The excess is the amount you pay toward any claim before the insurer contributes. It has two components: a compulsory excess set by the insurer and a voluntary excess you choose at quotation. Your total excess at claim time is the sum of both.

Does Comprehensive cover driving abroad?

Most standard Comprehensive policies include Third Party cover for driving in EU and listed countries for up to 90 days. Some policies provide full Comprehensive cover abroad; many revert to Third Party cover outside the UK. Verify the foreign travel terms in your specific policy before driving abroad.

Sources & Verification

• Road Traffic Act 1988, section 143: https://www.legislation.gov.uk/ukpga/1988/52
• ABI Motor Insurance Premium Tracker Q4 2025: https://www.abi.org.uk
• FCA, Insurance Product Information Document: https://www.fca.org.uk
• HMRC Insurance Premium Tax: https://www.gov.uk/guidance/insurance-premium-tax
• FCA Register: https://register.fca.org.uk
• BIBA, Find a specialist broker: https://www.biba.org.uk/find-insurance/
• gov.uk, Driving without insurance: https://www.gov.uk/vehicle-insurance/penalty-for-driving-without-insurance

This article is for informational purposes only and does not constitute financial advice. Always verify rates with official sources before making any financial decision.