The main reason is because all car drivers in the UK must be insured under the Road Traffic Act. The reason for this is not primarily to protect your own vehicle but to protect others from damages which your driving could be responsible for. This is known as Third Party Insurance and this is the minimum insurance cover UK law requires.
There are other reasons why car insurance is highly recommended and lots of people would say essential beyond the legal requirements, this is because people value their cars and the essential function they play in their lives. Lots of motorists rely on their cars daily and being without use of a car is a serious inconvenience. Car Insurance is extended by most drivers beyond the minimal level of Third Party cover as required by law, to also include cover for accidental damage for their own car and often courtesy car cover and breakdown cover as well. The reason for this is to minimise the inconvenience caused through the car not being operable because of accidental damage or breakdown.
There are other reasons too, lots of people love their cars and want to retain them in the best condition possible. They want Fully Comprehensive Insurance to ensure they are covered for as many eventualities as possible.
*Third Party Insurance is a legal requirement in the United Kingdom.
This depends largely on the type of car you have, your age, your driving record and where you live, other factors such as your occupation can also be important.
Type of cover and average annual cost* in GBP.
*Average annual cost based on MoneySuperMarket data from March and April 2024.
It may seem surprising, but fully comprehensive car insurance often turns out to be the most affordable option, even though it provides the highest level of coverage.
Our research shows that comprehensive policies average £559.07 per year, compared to £703.71 for third party, fire and theft (TPFT), and as much as £804.80 for third party-only.
One major reason is that drivers who choose third party-only cover tend to have a higher risk of being involved in accidents.
No matter your vehicle or driving history, there are effective ways to boost your chances of getting a better price on car insurance quotes.
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The insurance comparison service accessed through the affiliate link is provided by Quotezone, a trading style of Seopa Ltd. Seopa Ltd are authorised and regulated by the Financial Conduct Authority (FCA FRN: 313860). Seopa Ltd is located at Floor 4, Blackstaff Studios, 8-10 Amelia Street, Belfast, Northern Ireland, BT2 7GS. We are paid a fee for policies purchased, at no extra cost to you.
*51% of consumers could save £518.14 on their Car Insurance. The saving was calculated by comparing the cheapest price found with the average of the next four cheapest prices quoted by insurance providers on Seopa Ltd’s insurance comparison website. This is based on representative cost savings from June 2025 data. The savings you could achieve are dependent on your individual circumstances and how you selected your current insurance supplier.
