What is comprehensive car insurance?

If you’re looking for car insurance that offers a broad level of protection, then comprehensive car insurance (also known as fully comprehensive insurance) might be right for you. We’ll outline what this type of policy is, what it typically covers and how it differs from third-party insurance.

To drive your vehicle on UK roads, or in public places, you must have car insurance. The type of cover you choose, however, is up to you and should reflect your personal needs. 

We surveyed 2,000 people between January - May 2024 and around a quarter (24%) of UK drivers find car insurance complicated and hard to understand.  A further 15% also claimed they didn’t know exactly what their policy covers.

To help you find the right protection, this guide will walk you through one common policy option – comprehensive car insurance.

What is comprehensive car insurance?

Comprehensive car insurance (also known as ‘fully comprehensive cover’) covers damage to yourself, your car, as well as someone else’s car or person in the event of an accident – no matter who is at fault. It will also cover you against fire and theft.

Because it offers so much protection, you may find some lease agreements require you to take out comprehensive car insurance for your vehicle, instead of third-party. This is becoming a common practice for newer cars especially.

What does comprehensive insurance cover?

The details of a policy’s cover will differ from one provider to the next. However, there are typical features and benefits you can look for when exploring your comprehensive car insurance options.

By assessing which features feel the most relevant to you, and seeing the financial limits set against each one, you can compare your insurance quotes with more context. Remember, the cheapest insurance isn’t always the best value.

• Fire and theft provides cover when your car and or its accessories are lost or damaged by incidents such as fires, lightning strikes, explosions, thefts or attempted thefts.
• Vandalism or malicious damage offers protection in cases of vandalism, such as damage to your car or its components.
• Medical expenses cover costs resulting from an accident while travelling in your car.
• Protection against natural disasters covers you against damage caused by events such as floods and storms.
• Windscreen cover can provide payment for the repair or replacement of a damaged windscreen, often without affecting your no-claims bonus.
• Personal belongings cover provides insurance for items that may be stolen from your car or damaged in an accident.
• Alternative transportation offers a replacement vehicle or the cost of alternative transportation (such as a taxi) to continue your journey following an accident. It may also provide money for overnight accommodation.
• Misfuelling drainage and damage will pay for your car to be drained and flushed should you use the wrong fuel in your vehicle.
• Replacement locks is used when your car keys are lost or stolen and you need a replacement.
• Legal expenses cover helps to cover legal costs if you need to pursue a claim or defend against legal action related to a car accident.

What are the benefits of comprehensive car insurance?

Drivers with comprehensive car insurance can enjoy a range of benefits, a selection of which have been listed below.

Cover regardless of fault

Comprehensive car insurance covers the cost of repairs to your own vehicle in the case of an accident, regardless of who is at fault.

Cover for non-collision events

Comprehensive insurance doesn’t have to be limited to collision-related incidents. It can also protect against events such as falling objects, fire, or contact with animals.

Additional benefits

Comprehensive policies often come with additional benefits, such as cover for windscreen damage, personal belongings inside the car, and alternative transportation. The exact benefits will vary, depending on your provider.

Common comprehensive car insurance mistakes

According to our recent poll, many drivers aren’t aware of the range of benefits often included in comprehensive car insurance.

• 49% assumed a replacement car wouldn’t be covered.
• 45% thought they wouldn’t be covered for damage to their car, even when they’re not a fault.
• 43% thought they wouldn’t be covered for damage to their car when they were at fault.

Knowing that this cover can be available on comprehensive car insurance, can put you in a stronger position when exploring your policy options or considering a claim.

Do I need comprehensive car insurance?

Here, we share some of the factors you may wish to consider when assessing whether you need a comprehensive car insurance policy.

• The age and cost of your vehicle - if you own a new or high-value vehicle, the wider range of risks covered by comprehensive insurance can help you protect your investment in the vehicle.
• How often you use your vehicle - if you use your car daily or rely heavily on it for work or other activities, you may find comprehensive insurance beneficial as it provides cover for a wider range of incidents that could take your car off the road.
• Local crime rates - if you live in an area with higher rates of vehicle theft or vandalism, comprehensive cover may help to mitigate the financial risks associated with these incidents.
• The local climate and weather - if you live in a region that experiences extreme weather, such as high winds or floods, comprehensive car insurance can help cover the costs of repairing or replacing a vehicle damaged by these events.
• Financing - lenders often require comprehensive insurance for leased or financed vehicles. This ensures that the vehicle's full value is protected, and the lender's financial interest is secured.

How much is comprehensive car insurance?

Like any policy, the cost of comprehensive insurance can vary based on a range of factors. In fact, insurers use hundreds of different factors to determine the price of insurance. These can include:

• Your driving history
• The type of vehicle you own
• The cover limits you require

It’s worth noting that comprehensive insurance is designed to offer increased protection and that will be reflected in the costs of this type of policy when compared to third-party insurance.

You can read more about the cost of car insurance in our article How to reduce your car insurance and Why has my car insurance gone up?

What Is the difference between comprehensive and third-party insurance?

Third-party car insurance covers liability for injuries and property damage to others caused by your vehicle. Comprehensive car insurance provides broader cover. It includes third-party liability and adds protection against damage to your own vehicle in various scenarios.

For further information about the difference between these two types of car insurance, you can read our article here.

How to customise your comprehensive car insurance

With many policies and providers, you can choose to enhance your car insurance with optional extras or additional cover to suit your needs. These features will vary, depending on your provider, but could include:

• Guaranteed hire car provides you with a hire car if your vehicle is being replaced, has been stolen, or is being repaired after an accident by one of your insurer’s recommended repairers
• Cover for personal injuries provides more financial protection in the event of severe injuries or fatalities resulting from a car accident, covering costs such as medical expenses and rehabilitation costs
• Protected No Claims Discount (NCD) allows you to keep your no claim discount no matter how many accidents or claims you have
• Motor legal cover can be used to recover your uninsured losses where you have an accident that’s not your fault, or to defend a motoring prosecution
• Motor Breakdown cover can provide repair or recovery services with a range of options available

Offering broader cover and a range of benefits, comprehensive car insurance can prove an asset for many drivers. To learn more about how Age Co can help you protect your vehicle, click here.

Research Methodology

The research was conducted online by Leadership Factor for Age Co from a nationally representative survey of more than 2,000 UK adults. Data also broken down by Gender (Male/Female), Age (18-24, 25-34, 35-44, 45-54, 55-64, 65-74, 75-84, 85+), City (Belfast, Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Liverpool, London, Manchester, Newcastle, Norwich, Nottingham, Sheffield, Southampton), Insurance Type (Third Party, Third Party Fire and Theft, Fully Comprehensive, Other). Further information available on request via our Contact Us page.