When buying vehicle insurance there are three different policy options to choose from. Choosing the appropriate policy for you is the most crucial element of the process of buying the right car insurance for you.
Third party only insurance policies
The lowest priced policies on offer are third party, this is the minimum legal requirement to drive a vehicle and only covers damage you inflict on a third party. Any injuries to you are not covered although your passengers are normally covered by your policy. It also does not cover damage to your vehicle although if another driver is involved in the crash and they have insurance you may receive some compensation for damage done to your vehicle.
In most countries, third party insurance is a minimum requirement. It is the cheapest type of cover available, but it is not necessarily a good idea because there are many things that are not covered.
Third party fire and theft insurance
Third party fire and theft (TPFT) will cover your vehicle if it is stolen or set on fire as well as third party coverage to pay for the damage you cause to another party or their vehicle. Sometimes there are limits to the type of coverage provided. For example if you normally keep your car in a secure garage and you leave it out one night and it is stolen in some countries the payout may be limited. Always check details like this before signing up for a policy.
Fully Comp insurance
Fully comprehensive covers fire and theft. In addition, it covers you against injuries to other people and damage to other peoples’ property. You are also covered for accidental damage as well as the loss of individual items like music players, which may be stolen or damaged in a crash.
There are, though, different types of fully comprehensive coverage and not all services will offer you with the same things. For example, some agencies will offer a courtesy car, while others will require you to add that to your plan.
European cover, legal expenses and windscreen cover are also normally included. However, these will bump up your estimate, so if you do not need this type of cover ask for it to be excluded and get a new quote.
A like for like quote comparison is the best way to choose your provider and remember, the cheapest deal might not always be the ideal for your personal needs. The number one way to get really comprehensive cover, is to go through the small print thoroughly. Ensure that you ask for what you need when asking for a quote, and be very clear about what that is when asking for quotes.
Are you insured to drive other people’s vehicles?
It is worth checking if you are covered to drive other peoples’ cars. The other car would have to be privately owned and of course, you would require the actual owner’s permission.