Your car is probably one of the most expensive purchases you’ll make. Many of us rely on our motor vehicles to go about our daily lives, so may find it hard to cope without it. How would you cope if you found yourself without the use of your car following an accident or theft?
It’s important to have the right level of car insurance in place should the worst happen – the right policy can be the difference between staying mobile and being stuck with no wheels. A certain level of insurance is also required to legally drive on public roads and cover third party damage. Read on to find out more about the different types of cover.
Third Party Only
The most basic level of cover, this policy can help protect any third party in the event of an accident, but your vehicle and you are not covered. Third party means any person or vehicle you cause injury or damage to as well as any passengers that are travelling in the vehicle with you.
It’s important to note with this type of policy that fire, theft, and vandalism are not covered –you’re only protected for your third party liabilities.
While the low premiums may look appealing, make sure you consider whether you could manage to replace your vehicle out of your own pocket should it be written off, or pay for hefty repair bills for damage caused due theft or vandalism.
Typically, this type of cover is used for low value cars and new drivers who my struggle to afford the higher premiums with comprehensive cover.
Third Party, Fire & Theft
Like third party only cover, this type of policy can help cover the other person, their vehicle and property as well as your passengers, but not you or your vehicle. However, your vehicle is also covered if it is stolen or destroyed by fire. The difference in cost is usually small so it could be worth paying a little extra for the extended cover.
Typically, this type of insurance is only recommended for vehicles of around £1500 or less in value.
Fully Comprehensive
This type of policy could help cover costs if you’re involved in an accident, if your car is stolen, vandalised or burnt out. If a claim is successful, your vehicle will be either fully repaired or written off and the current market value paid to you for a replacement vehicle.
If you own a high value car, then this is the policy you should be looking for.