Car insurance is a mandatory requirement for drivers in the UK, but there's more than just one type of insurance policy to choose from. Your choice of cover should be influenced by your available budget, how much you expect to use your vehicle and the types of driving activities you'll be doing, and it's generally recommended to take out the highest level of cover you are able to comfortably afford.

The minimum requirement for car insurance is a third party policy, which covers injuries to passengers in your vehicle during collisions and other road accidents as well as damage to other vehicles, but will not cover repair costs to your own car. These policies may also cover emergency medical costs, but will not extend to ongoing care or recovery costs. Third party insurance is the most affordable option for drivers, but due to the comparatively low level of cover it offers, it could result in your repair costs being much higher.

There are some circumstances in which third party cover may be sufficient however, such as if you're insuring a low value car that won't cost so much to repair or replace if needed. Drivers in higher risk insurance categories, such as young male drivers, may choose third party cover to lower the cost of their monthly premiums, but this could be putting them at greater financial risk in the event that accidents do take place.

Third party fire and theft insurance provides a similar level of cover to third party insurance, but your insurance company will also pay out if your car is damaged by fire or stolen. The levels of damage covered often vary between insurers, such as cover for accidental damage, so you should always check the terms and conditions of policies before you buy.

The highest level of cover available, and the type of car insurance chosen by the majority of drivers, is fully comprehensive car insurance. These policies typically cover damage not included in standard insurance cover, such as broken windows, damage to entertainment systems and cover for accidents when driving abroad. Comparing comprehensive car insurance policies is essential if you're hoping to find the best level of cover.

In some situations, you could benefit from specialised insurance policies, which are tailor-made for the needs of certain drivers. These include women's car insurance that aims to offer fairer premiums, short term car insurance, student car insurance and insurance for senior drivers.

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