Types of car insurance

This isn't an easy question to answer, as there's no one-size-fits-all rule. The cost of car insurance is calculated by each insurer based on many factors, all to work out how much of a risk it thinks you are. 

The riskier you appear, the more likely the insurer thinks you'll be to make a claim – which it will then have to fork out to pay. For example, a driver who has caused two accidents in the last three years and has an expensive, fast car will pay more than someone who can prove they've been accident-free for years and drives a smaller runaround.

The type of policy you choose will also affect the price. You might expect third-party insurance to work out the cheapest (as it offers the lowest level of cover) – but car insurance isn't always that straightforward. In fact, choosing fully comprehensive insurance can be seen by certain insurers as the more responsible, lower-risk option, so it's often cheaper than opting for third-party.

The only way to know for sure is to use trial and error when getting quotes: get a quote for third-party, then third-party, fire and theft and finally fully comprehensive. You can then see which is cheapest and, if it's not fully comp, which level suits you the best.