What Are the Different Car Insurances?
Are you looking for the right car insurance policy? It’s highly important to get one to cover any unexpected expenses on your car. However, since there are different car insurances, it can be quite challenging picking the best one for your needs. With this guide, we’ll help you out so you’ll have an easier time choosing your auto insurance.
How Car Insurance Works
Every car owner needs car insurance to have protection and peace of mind while driving on the road. When you have car insurance, you will be paid by the insurance provider in the event that your vehicle gets vandalised, catches fire, gets stolen, or gets in an accident.
The insurance will also protect you from the damage you may cause to properties, other cars, or injuries to people. All these are what is called “third parties.” You can claim your car insurance policy if the accident was due to a fault from your end. However, if the other driver caused the accident, then it will be their insurance that will pay for the damage.
Why You Need Auto Insurance
In the UK, it’s an absolute must that you have car insurance because it’s the law. You cannot drive if you don’t have one. And since it’s illegal to not have your car insured, you could be fined a significant amount.
It’s also possible that your car will be seized and then destroyed. You can check more on the Government's website for other consequences you may face if you’re caught driving a car without insurance.
What Car Insurance Covers
Basically, car insurance protects you from costly financial losses you may incur if your car gets damaged. However, keep in mind that the kind of protection you get will vary on the type of insurance policy you get for your car.
In the event of an accident, and it’s found that the fault was yours, your car insurance provider will be the one to cover the expenses. You’re still going to pay the excess though, which will be the fee set by the provider. Along with that, you will also pay voluntary excess which will be an extra amount you’ll set.
Once you’ve claimed your policy, it’s likely that your premiums will also increase. The cover of the car insurance has varying levels. The one you select will set how much the insurance provider will cover.
Types of Car Insurance
Three types of car insurance covers are available to car owners. They are the comprehensive cover, third party, fire and theft car insurance, and third party. There are also other types that are for more specific vehicles, drivers, and needs.
This kind of car insurance is also called fully comprehensive or fully comp. Its main features include cover for you, your vehicle, the passengers of your car, and property. Also included are third parties that may incur injuries in an accident. And since it is a comprehensive cover, it will also protect your vehicle against theft and vandalism.
A comprehensive car insurance policy is suitable for every car owner. In fact, most drivers in the UK choose this type of insurance because it gives the most protection among the other types. There are also some comprehensive car insurance policies that will still cover you when you’re driving another car. Check the policy if you want this kind of cover to be included.
Third Party, Fire and Theft Car Insurance
This kind of cover is also known as TPFT. With it, third parties that are affected by an accident will be covered. Your car will also be protected from damage from fire and theft. However, TPFT doesn’t cover damage to your car in an accident or if it was vandalised. TPFT is a good choice for car owners who want a more affordable car insurance policy.
Third Party Car Insurance Policy
If you’re only looking for a basic car insurance policy, Third Party would be suitable for you. It will cover costs of damage to properties of third parties, as well as injuries. Third Party car insurance is the minimum requirement for UK motorists according to the law. If you don’t drive often and you only need a basic cover with cheap premiums, this is a good choice. However, take note that not every car insurance policy provider offers Third Party car insurance.
Other Kinds of Auto Insurance Cover
- Short-term Car Insurance - this is a temporary cover if you’re going to drive a vehicle for only a few hours or a number of days.
- Taxi Insurance - cab drivers usually have to pay more expensive premiums since they are driving for several hours a day.
- Learner Car Insurance - if you’re still learning how to drive, this is the cover you should get until such time that you’ve passed your driving test.
- Young Driver Car Insurance - insurance providers see young drivers as high-risk. This cover is suitable for younger drivers.
- Black Box Insurance - young drivers or those who have just passed their driving exam may get this cover. They can get a more affordable policy from the insurance provider if the telematics device monitors their driving to be safe.
- Multi-car Insurance - if you have several vehicles, you can get a discount from the insurance company if you get covers for all of them from the same provider.
Now you have an idea of the different types of car insurance plans. Depending on your needs and finances, you may get a basic cover such as the Third Party. However many people prefer to get a Fully Comprehensive car insurance cover. This way, you’re sure that you’re fully protected from financial losses in the event of accidents, fire, theft, or vandalism.
Sometimes you might be able to get car insurance as part of your car finance deal, this can be a useful option for younger drivers with no insurance history, but always do your research as this might not always be the cheapest option. Also if you are a younger driver and premiums are high, why not look into "black box" insurance - then if you do drive carefully and sensible you will benefit from lower premiums.
Be sure to check the details of the insurance policy you choose for your car before you commit to it. Since specific details of various policies may differ, you need to ensure that you’re going to get the cover that you need for your particular situation.