Policy types
There are many different types of insurance policies available, and it is important to choose the right insurance deal for you. The main types of policy are:
Third Party
- This type of insurance is the minimum level of cover that you are legally required to have.
- If you cause an accident, third party car insurance only covers you for the damage or injury caused to a third party.
- This type of policy will also cover any property damage that is proven to be your fault in the event of an accident.
- Should your car be stolen and the thief causes an accident, you will be covered for the damage or injury caused to a third party, but you will not be covered for any damages to your own vehicle.
- You cannot claim any money for personal injury to yourself, or damage to your vehicle.
- You cannot claim any money for damages to your vehicle if it is set on fire or stolen.
- You are not allowed to drive a car that does not belong to you if you only have third party only insurance.
- This type of insurance protects you against any claims made against you in the event of an accident.
Third Party, Fire and Theft
- This type of insurance is the same as the third party only policy, except you can claim money in the event of your car being stolen and set on fire.
- The theft and damage has to be reported to the police before you can make a claim with this type of policy.
- Third party, fire and theft insurance is often used by younger drivers who have lower value cars.
- These cars are often easier to break into, and as a result are more likely to be stolen and burned.
- Making such a claim can cause your premiums to rise considerably, so it is recommended to install an alarm and immobiliser in your car to prevent theft.
Comprehensive
- Also known as fully comprehensive insurance or all risk insurance.
- This type of insurance allows you to claim for damages to your vehicle caused by almost any means.
- It also allows you to claim for damage to your vehicle caused by vandalism, fire, theft and accidental damage not resulting from a crash.
- Often included in comprehensive insurance is windscreen cover. You can often claim money for small repairs to your windscreen without having to pay an excess and without affecting your no claims bonus.
- Some comprehensive policies allow you to drive other peoples cars.
Even comprehensive insurance does not cover for every eventually, check the small print for any exclusions that are not covered by the policy.
- Should you have an accident you will always have to pay an excess, even if the accident wasn't your fault. Although in this case, you can claim the excess back from the other persons insurance company.
- Some comprehensive policies offer car hire if you cannot use your own for a short period of time due to repairs. Check if you are entitled to car hire in the event that your vehicle needs to be sent away for repairs.
- Most insurance companies will not cover damages caused to communication or audio equipment in your car.
- If you pay for your vehicle on a finance package, most insurance policies will not cover any outstanding credit owed. It may be worth getting GAP insurance to pay for any outstanding credit that a comprehensive policy would not cover.