It’s illegal to drive a car without insurance, but knowing which cover to choose can be a tricky decision. Before choosing your policy, it’s important to understand the different car insurance types and what they provide.
What are the different types of car insurance?
There are three types of car insurance and they include:
- Fully comprehensive
- Third party fire and theft
- Third party
What is third party insurance?
If you have a car and want to drive on the roads, third party car insurance is legally required. Even if you’re not planning on driving every day, you must insure your car.
Third party cover pays out if you’ve caused an accident and injured another driver, their passengers or damaged their vehicle. Your passengers are also covered under this cover. The only person not covered, is you.
Third party doesn’t cover the cost of repairs to your vehicle or if your vehicle is stolen or damaged by fire.
If you’ve got an expensive sporty car, it’s not usually advised to get third party coverage.
What is third party fire and theft insurance?
This type of insurance offers the same level of cover as third party, but also protects you if your car is stolen or damaged by fire.
What is fully comprehensive insurance?
Fully comprehensive provides the largest amount of cover for your car. It covers:
- Accident, theft and fire
- Damage suffered by others
- Damage to your own car
It’s important to remember that not all comprehensive policies are the same. Some may allow you to drive another car or allow you to drive your own car abroad.
Some policies offer additional features such as:
- Courtesy cars
- Legal cover
- Breakdown cover
These will not be included in all covers so check the terms and conditions of every cover before making your final choice.
Before buying any additional features, think about whether you’ll actually need them. It’s also a good idea to shop around as sometimes you can get breakdown cover cheaper on its own, rather than as part of your car insurance.
The key thing is to do some research into the different covers and remember that premiums will vary depending on the make and model of your car. As a driver, you need to take some time to look into the terms and conditions to ensure which cover is right for you and your card.
Remember, before you sign up to any policy, it’s worth looking at the other types of insurance to check you’re getting the best deal.