Levels of cover in the UK
- Third party only: covers injury to others and damage to their property. Not your own car.
- Third party, fire and theft: adds cover if your car is stolen or catches fire.
- Comprehensive: adds damage to your own car, even if the accident was your fault. Despite what you might expect, comprehensive is sometimes cheaper than third party, so always compare all three.
Driving without insurance in the UK can lead to a fixed penalty of £300 and 6 penalty points, and if it goes to court, an unlimited fine and disqualification. The police can also seize the vehicle.
How US auto insurance works
US policies are built from coverages: bodily injury and property damage liability (shown as limits like 25/50/25), collision (your car in a crash), comprehensive (theft, weather, animals), uninsured/underinsured motorist and, in no-fault states, personal injury protection (PIP). State minimums are low compared with the cost of a serious accident, so many drivers choose higher liability limits.
Driving in Europe
Every EU country requires third-party motor insurance, and a policy issued in one member state covers the legal minimum across the EU. UK drivers no longer need a green card to drive their own insured car in the EU, EEA, Switzerland and several other countries, but should check what their policy covers abroad (often third party only unless extended). Read driving in Europe: insurance checks.
What affects the price
Insurers price risk from factors such as the driver’s age and experience, claims and convictions history, the car’s value and insurance group, where it’s kept overnight, annual mileage and how it’s used (social, commuting or business). Since December 2012, following a European Court of Justice ruling, insurers in the EU and UK can’t use gender as a pricing factor.
Don’t “front”. Naming a parent as the main driver of a car really driven by a young driver is fraud and can invalidate the policy.
No claims discount (bonus)
Each claim-free year usually earns a discount. Protected no claims discount lets you make a limited number of claims without losing the discount, but your premium can still rise after a claim. The name varies: no claims bonus (UK), claims-free discount (US), bonus-malus (much of Europe).
Last updated: 15 October 2026
