Car insurance is such a major aspect of the fast paced lives that people lead today and has become instrumental in how financial futures are planned. In fact, if you go to a financial planner, it is very likely that you will find him asking you if you have an appropriate car insurance policy. Furthermore, even the government of the UK makes it mandatory for a car to be insured before it can be driven on the roads.

Also, these laws are strictly implemented and if you are found driving your car without it being properly insured, you can be fined a significant amount of money and also have your driving licence disqualified. However, when it comes to insuring your car, you will find yourself facing three different types and in order to choose the one that suits you, you will have to understand them. For this reason, the following are some descriptions of the three types of policies that you can use to insure your car.

1. Third Party Policy:
This is a car policy that is the bare minimum required by the government of the UK. The primary purpose of this kind of a policy is to provide cover to the insured for costs related to personal injury or damage to property. For example, if you have an accident with some other driver and end up damaging his car and injuring him, then it is likely that that person will claim for the money that he has had to spend on repairing his car. If you are insured with a third party policy then these costs will be paid for by your policy provider.

2. Third Party, Fire and Theft:
This kind of a car policy provides more cover than the third party policy because it includes clauses for damage to your vehicle through fire. Furthermore, another aspect that this kind of a policy would protect you from would be the threat of theft. Otherwise if your car gets stolen then you would not only have lost the money already invested but also, probably, will have to spend the same amount of money for a new car.

3. Comprehensive Policy:
A comprehensive car policy is a policy that caters to all types of contingencies that you may face on the road. Apart from the third party claim protection and cover for fire and theft, the comprehensive car insurance policy also protects you from the costs of repairing your own car that was damaged in an accident.

The problem that you may face with getting a car insurance policy is that it can turn out to be fairly expensive. However, finding cheap car insurance policies has been made possible in recent years due to the rise to prominence of the internet. The internet contains a host of car policies that differ on the basis of many things. This is good for customers such as you because it makes the online insurance market very competitive and policy providers try to provide you with cheap car insurance policies which you can take advantage of.