What does car insurance cover?

Car insurance protects you, your car, and other people if something goes wrong on the road. It’s a legal requirement in the UK, so it’s a must have if you want to get on the road.

But different policies offer different types of cover. If you’re new to the UK, this can be confusing. This guide explains what car insurance usually covers, what it does not cover, and what to check before choosing a policy.

What does Fully Comprehensive car insurance cover?

Fully Comprehensive insurance generally gives the highest level of protection.

It usually covers:

• Damage to your own car, even if you caused the accident
• Damage to other cars
• Damage to property such as walls, fences or buildings
• Fire, theft and vandalism
• Storm or flood damage
• Accidents on public or private roads
• Personal injury cover to you and others

Other common features include:

• Windscreen repairs or replacement
• A courtesy car if your policy includes it
• Driving someone else’s car (only if your policy clearly says this)

Find out more about Fully Comprehensive car insurance.

What does Third Party car insurance cover?

Third Party insurance gives the minimum level of protection required by law.

It usually covers:

• Damage to other cars
• Damage to property such as walls, fences or buildings
• Personal injury cover to other people

You can also get Third Party, Fire and Theft. As the name suggests, this includes the same cover as Third Party only, plus:

• Damage caused by a fire
• Theft of your vehicle

Find out more about Third Party car insurance.

Does car insurance cover mechanical problems?

Most car insurance does not cover mechanical problems. This includes:

• Engine failure
• Electrical faults
• Wear and tear
• Old or damaged parts
• Tyre problems

Insurance only covers mechanical issues if they were caused by an insured event, such as:

• Flood water entering the engine
• A fire started by an electrical fault

If your car breaks down due to age or normal use, your policy will not pay for repairs.

Does car insurance cover breakdowns?

Breakdown cover is usually not included in standard car insurance. You often need to buy it as an extra.

Breakdown cover can help with:

• Roadside assistance
• Towing after a breakdown
• Recovery to a garage

Your car insurance may cover towing after an accident. It will not cover towing after a mechanical failure unless you have added breakdown cover.

Find out more about Marshmallow Breakdown Cover.

What does car insurance cover in the first month?

Your cover begins the moment your policy starts. This means your first month offers the same cover as the rest of the year, including:

• Accident cover
• Fire, theft and weather cover
• Third-party injury cover
• Any extras you added

The cooling-off period does not reduce your cover. It simply gives you 14 days to cancel if you want to.

Does car insurance cover damage on private property?

Yes. Most car insurance covers damage on private land, including:

• Hitting a gate or wall
• Damage in a private car park
• Someone damaging your car on a driveway

It usually does not cover:

• Driving on private land without permission
• Off-road driving
• Business use carried out on private land

If you often drive or park on private land, check your policy to make sure what you are covered for.

Does car insurance cover business use?

Not always. Most standard policies will only cover you for day-to-day driving and commuting to and from work. This is called Social, Domestic, Pleasure and Commuting (SDPC).

If you drive for work, visit clients, or travel between different workplaces, you may need business car insurance.

What does business car insurance cover?

Business car insurance provides cover when you use your car for work.

There are three common types:

• Class 1 business use: Covers driving to different work sites and visiting clients.
• Class 2 business use: Covers everything in Class 1 but also includes named drivers.
• Class 3 business use: Covers jobs that involve a lot of driving, such as sales visits. It usually does not cover delivery or courier work unless stated.

Always check that your specific job is allowed under your policy. At Marshmallow, Class 1 Business use is covered as part of our comprehensive car insurance.

Does car insurance cover rental or hire cars?

Your own car insurance usually does not cover rental cars.

Rental companies normally include basic cover, but it may have a high excess. You can often add a Collision Damage Waiver (CDW) or excess insurance.

These extras reduce what you must pay if the rental car is damaged or stolen. Some insurers sell temporary insurance for rental cars, but not all.

What does liability insurance cover?

Liability insurance is the ‘third-party’ part of every UK car insurance policy. It covers:

• Injury to other people
• Damage to other vehicles
• Damage to buildings or property
• Legal costs

It does not cover damage to your own car.

Find out more about third-party car insurance.

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