If you drive a car you need to have insurance, not only in an effort to protect yourself and your vehicle, but also in order to comply with local laws and regulations that likely demand at least some level of coverage. But with such a wide array of options and different types of available policies, selecting suitable car insurance can often be a challenging task. To help you make the best choice for your unique needs and requirements, it’s important to understand the different forms of car insurance that are currently available.
Being the minimum legally required cover in a number of countries, third-party only insurance helps to cover the damage caused to other vehicles in case of accidents, as well as treatment costs relating to individuals you might have hurt. If they sustain injuries during the accidents, your passengers could be compensated with this insurance as well.
The main downside of this insurance option is that it only protects other vehicles, people, and property in case of an accident that was your fault. This means that if your car gets damaged during such an accident, if you sustain any injuries, or if your vehicle gets stolen, you won’t be covered with third-party only insurance.
But despite the lower coverage, third-party only policies can often be more expensive than comprehensive insurance for some drivers, likely due to a disproportionate amount of claims made by higher-risk drivers.
Comprehensive car insurance tends to offer the widest protection and the highest level of cover compared with other insurance options. The biggest benefit of these policies is the fact they will pay for necessary replacements or repairs in case of accidents that were your fault, and even in cases when fault can’t be determined.
If you opt for the best car insurance policy, these options won’t only cover the loss or damages to your own vehicle, but also the damage you cause to other people’s property. A good policy can also give you additional perks such as roadside assistance, flood and storm cover, choice of repairer, and even car hire options after a theft, as long as you make the right choice.
While it might seem logical that such broad coverage also comes with the highest cost, that might not actually be the case. As many higher-risk drivers historically chose third-party options in an effort to lower their costs, comprehensive car insurance can often be a more affordable option, particularly for individuals deemed to be high risk.
In contrast with third-party only policies, third-party fire and theft insurance offers slightly wider coverage, but still not quite as broad as comprehensive insurance. This insurance option will replace your vehicle in case of theft, pay for damages sustained as a result of attempted theft, and cover fire damage caused by arson and accidental fire, along with the extent of third-party only coverage.
However, if you decide on a third-party fire and theft policy, keep in mind it won’t protect you against any damage to your own vehicle, pay for medical expenses and replacements in case your car is written off, or offer windscreen and breakdown covers.
In terms of premiums, third-party fire and theft insurance can also turn out to be quite a costly option for many drivers, especially compared with the prices and the coverage comprehensive car insurance offers.
Ultimately, the type of car insurance policy you select will depend on how much it would financially hurt you to go without your vehicle if you ever wrote it off. Of course, the rates of premiums are quite important for most individuals as well, which is why it pays to know how you could acquire more affordable policies.
For instance, simply being a more experienced driver with a good history and track record can get you a better deal. If this doesn’t apply to you, however, your monthly premium can also go down if your driving habits make you less of an insurance risk, such as increasing your excess, having good car safety and security features, as well as limiting your miles.
Car insurance is not only a legal requirement in most countries, but also an essential method for protecting yourself and your vehicle on the road. And while choosing a good policy might often be a difficult task, the guide outlined above will hopefully allow you to make the best, most suitable decision for your personal needs.