Vehicle cover
The policy is attached to a registration number. Anyone driving that car with permission is covered; the car's owner is not covered in any other car. It is the cheapest option for a one-car household and the only sensible option for a car that several people drive, such as a family runabout or a works vehicle.
Personal cover
The policy is attached to a named person, who is covered as a driver or passenger in any eligible private vehicle. Most providers let you add a partner or other household members, and some include the whole household at the same address. It costs more than a single vehicle policy but can replace two or three.
When personal cover wins
- Two drivers, two cars: one joint personal policy is usually cheaper than two vehicle policies.
- You drive other people's cars — company pool cars, a parent's car, hire cars in the UK.
- You ride a motorbike and drive a car: personal cover normally includes both.
- You are a frequent passenger in friends' cars on long journeys.
When vehicle cover wins
- One car, one or more drivers who all drive it.
- A car driven by a young driver or a new driver whose friends also drive it.
- A business vehicle with multiple drivers.
Exclusions that apply to both
Personal cover will not help if the vehicle itself is excluded (over the weight limit, a hire van, a vehicle that was already broken down). Vehicle cover will not help if the car was being used for hire and reward, racing or off-road. Both exclude vehicles that are not road legal.
Joint and family policies
Most major providers sell joint personal cover for two people at one address, and family cover for everyone at the address. If you have teenage drivers at home, family personal cover is often the simplest way to make sure everyone is covered in every car.