Buying a car can be one of the most important purchases of a person's life, and great care and consideration is taken to find the perfect car. More often than not the issue of obtaining insurance for this new vehicle is overlooked in the excitement of the purchase, and to make matters worse there are hundreds of different insurance companies across the UK competing for your money. All companies offer a variety of policies that not only cover your car but also you and any other person who may be involved. What makes it confusing for most vehicle owners is deciding which level of cover is suitable for them and which one will provide the most benefits for the best price.

There are a number of issues all purchasers should consider before shopping around to find cover. First, take time to identify what level of cover is beneficial for you and what you are willing to pay for this policy. There are three different levels of cover offered by insurers, all with varying additional benefits and costs, these include Third Party only, Third Party Fire and Theft and, Fully Comprehensive cover, all of which you have to navigate through before going any further. The most important difference between each policy is the amount of coverage the insurer offers you and your vehicle and the level of premium or excesses associated with each policy.

Third Party car insurance is the minimum amount of insurance required under law when driving in the UK, it includes cover to any loss or damage to other people and their property. However, it does not cover any damage experienced by you or your vehicle in the event of an accident. One step up from this is Third Party Fire and Theft which not only insures cover for a third party but also provides compensation for any act of fire and theft in which your car is involved. In many circumstances it is beneficial to obtain the extra cover offered by Third Party Fire and Theft as there are more companies offering this policy and the price can be similar or in some cases lower due to the competitive rates offered.

Full Comprehensive Cover is the most expensive of all policies on offer but as it says provides maximum coverage for you and your vehicle in the event of an accident. This includes the basic cover included with Third Party, but also offers additional cover and benefits such as breakdown assistance, personal accident insurance, and also windscreen cover to name a few. There is however some areas Comprehensive insurance does not cover such general wear and tear of a vehicle and manufacturers faults. You need to be completely aware of all fine print before agreeing to its terms to ensure you're not paying for something you don't need.

With each policy it is important for you to consider which cover is more appropriate for you. As Third Party insurance, whether fire and theft or third party only, is basic cover it will not safeguard you against any additional costs associated when repairing or replacing a damaged vehicle. Therefore, you need to consider what your car is worth and whether the additional costs associated in the event of an accident can be offset with the extra required for full coverage. This choice of cover is usually advised if you own a vehicle of low value as the insurers compensation if insured fully would be minimal after excesses have been calculated.