• Car insurance isn't transferable in the UK.car image by sasha from Fotolia.com
  
  Car insurance in the UK covers named drivers in specific vehicles and is non-transferable. The insurance cost or premium payable is dependent on the type of car, the experience and age of the driver and a history of accidents. There are three main classes of insurance that are categorized as only personal use, personal and business use and commercial use.
  
  

Fully Comprehensive Insurance

• This is the most expensive insurance coverage, as it covers you and any injured party in an accident. This type of insurance also covers you for third-party liability if you are driving someone else's car. There are standard exclusions to this cover such as damage caused by terrorism, earthquakes and nuclear explosions that most comprehensive policies have in common. Other exclusions include own damage such as wear and tear and tire damage.
  
  

Third Party, Fire and Theft (TPFT) Insurance

• This insurance covers a third party for all damages and covers you in the event of theft or fire. Your car is are not covered if the accident is your fault.
  
  

Third Party Insurance

• This insurance is the cheapest available insurance. It covers a third party for damages if you cause an accident and is the minimum coverage you have to take out by law to drive in the UK. If you are involved in an accident that is not your fault, you are covered by the other driver's third party insurance. If the other driver is not legally insured, you have the right to claim compensation from the Motor Insurer's Bureau.
  
  

Specialized Insurance

• Car insurance is a lucrative business in the UK. Insurance providers capitalize on this and provide alternative forms of insurance that offer a variety of combinations of comprehensive, TPFT and third party insurance to attract customers who want insurance that meets their specific needs. Coverage designed specifically for young drivers and woman drivers are some of the popular alternatives to the more expensive general comprehensive insurance packages available.
  
  

Pay As You Go (PAYG) Insurance

• If you do not use your car often, this type insurance is suitable for you. It is a comprehensive coverage that you only pay for when you use it. It works by fitting your car with a global positioning system (GPS), which measures the distance you travel each month. A cost is calculated which is dependent on the distance, class of road and time of day you have traveled, and a monthly bill is sent to you.