Types of car insurance policies

What is the correct Level of cover for you?

The entire area of car insurance can be highly confusing as there are various policies on offer from numerous insurance companies. You need to understand the levels of cover available in order that you can purchase the correct policy for your needs. Essentially there are three types of car insurance policy available:

Third party car insurance

Third party car insurance is the minimum legal requirement should you wish to drive on a public road within the UK. A third party policy covers the driver should he or she cause damage to another individual, his or her vehicle or property. Say, you lose control of your car and knock down a neighbour's garden wall, the policy ought to pay out. In the same way, you would be covered should you cause an accident and injure another motorist or passenger.

However, third party insurance is limited as it does not provide cover for your vehicle should it be stolen or damaged by fire. Hence, it is most appropriate for motorists who drive an old runabout as opposed to a high performance sports car.

You can get third party car insurance cover which is cheaper than a fully comprehensive policy. However, but it is always worth checking whether or not you could buy more extensive cover at the same price. Given that the cost of insurance has gone up over recent years, a greater number of young drivers have chosen third party cover to save money. Statistically younger people are more likely to claim on their policies, increasing the cost to insurers. Hence, the premiums for third party cover have gone up.

Third party fire and theft car insurance

Should you wish to opt for extra insurance protection, third party fire and theft car insurance also covers your vehicle should it be stolen or damaged by a fire. Premiums can differ due to several factors, including car make, model and security features. It is advisable to compare the cost of third party fire and theft with comprehensive cover to ensure that any cost savings are worthwhile.

Fully comprehensive car insurance

The majority of motorists select fully comprehensive car insurance because it covers the car as well as the driver against various risks. Do not presume that each comprehensive policy is identical. Some do insure policyholders for driving another vehicle or driving their car abroad and some do not. Hence, it is crucial to read the terms and conditions in order that you get the level of cover necessary.

You can normally purchase add-ons to a fully comprehensive car cover like legal expenses insurance and breakdown cover.

However, only opt for any extra benefits if you are going to use them or you will be throwing your money away.

Compare the types of third party, third party fire and theft and fully comprehensive cover available to ensure that you get value for money. The correct cover is obviously dependent on your specific circumstances.