Types of Car Insurance
There are many different types of car insurance that are currently available in the UK. They each have their advantages and disadvantages but you must have one as it is a compulsory legal requirement. It is important to think about your own specific circumstances before you decide upon which type of cover it is that you are going to pay for.
There are three main types of car insurance that are available in the UK - third party, third party fire and theft and fully comprehensive.
Third Party Car Insurance
Third party insurance is the minimum level of insurance that is required in order to drive on any public road in the UK.
This is the most basic level of insurance that you can have. In the event of an accident, third party insurance will cover the costs of any damage that your car causes to the vehicle of the other person that was involved. This type of cover also provides payment for any injury related compensation or other property damage that is present. This is of course only the case if you are the driver at fault for the accident.
There some drawbacks to this type of insurance because it does not cover the cost of the damage to your vehicle if you are involved in a crash that you are at fault for. It would also not cover your vehicle if it was damaged by a fire or if it was stolen. This means that if any of these things happen, you would end up with a rather big bill to pay. People often choose third party car insurance if they drive an older car because the cost of repairs will be much smaller than if you drive a car from a more expensive manufacturer.
Third Party, Fire and Theft Insurance
Third party, fire and theft insurance is the second type of insurance that is offered by companies in the UK. It offers slightly more cover than third party but is still not as extensive as a fully comprehensive policy.
As the name suggests it offers the same protection as third party policies but in addition to this it will cover the cost of damage if your car is involved in a fire. These types of policy will also cover the cost of your vehicle if it is stolen.
Similarly to third party insurance, third party fire and theft policies are often less expensive than fully comprehensive plans. However if you are involved in an accident that you are at fault for, then you will have to pay for the cost of repairs to your vehicle.
Fully Comprehensive Car Insurance
The highest level of cover that you can get in the UK is fully comprehensive insurance. If you want to insure yourself against any eventuality, then this is the type of policy that you should go for. This type of policy will cover damages to your own car as well as the costs of repairs from fire, or replacement in the case of a theft.
Fully comprehensive car insurance offers a higher level of protection than either third party or third party fire and theft. However these types of policy do not come cheap and are often much more expensive than the other two forms of insurance. Many people still think that this price is worth paying for the peace of mind that it gives to a driver.
Not all fully comprehensive plans are the same. Some of them cover you to drive any vehicle and others allow you to drive outside of the UK. It is important to check the small print of any plan that you decide to sign up to. Some plans offer you a complimentary courtesy car in the case of a breakdown or an accident. Others offer you the chance to have free breakdown cover.
It is important that you consider whether or not you will use all of the features of this type of policy. If you don't think that you will, then it may not be worth paying for any of these additional services as they will just be a waste of money.