In many places, almost all drivers have car insurance. In UK however, we found out that people are more interested in buying insurance for their health, life, travel, etc. than buying car insurance. It is just recently that some of them realized the importance of car insurance.

So if you’re one of those people who are just about to get car insurance, here’s one thing you must know: there are numerous types of car insurance. You should learn and understand each if you don’t want to end up getting a bad deal.

Generally, there are three types of insurance policies for cars – Third Party Only (TPO), Third Party Fire & Theft (TPFT) and Comprehensive (Fully Comp.). The Third Party only insurance policy covers you, the policyholder, against the damage of vehicle of any third part. For instance, if you are driving the car of any of your friend, and meet an accident. Then according to this insurance policy, your injured friend and damaged car will get the insurance cover, and not you. Third Party Fire & Theft (TPFT) also acts the same way like Third Party Only (TPO) but as the name suggests, it covers the third party when it encounter a car accident that involves fire or robbery. On the other hand, a Comprehensive policy plan covers all car related damages and physical injuries of persons sitting in the car.

So again, make sure you carefully read and understand these policies before making a final decision.