There are many different types of car insurance, so when it comes to attaining car insurance, it is important to know all the relevant information, which includes the different types of car insurance on offer. In this article, we have outlined the three basic types of car insurance and explained how each one works.
Comprehensive cover is the most extensive car insurance option available and it means that you are covered for theft and hijacking, as well as any damage caused by weather conditions or accidents. Comprehensive car insurance also covers you if you are responsible for an accident and need to pay for damages sustained to another vehicle. It is the most expensive car insurance option available, but it is usually well worth it.
This type of car insurance is similar to comprehensive cover, except for the fact that it does not cover you if you accidentally damage your car. If your car is damaged or lost due to hijacking, weather conditions, or fire, then this type of insurance will have you covered. However, if you are involved in a vehicle accident, or if you accidentally damage your car and it is within your control, then you would have to cover the repair or replacement costs of your own vehicle yourself. In the event of your car being damaged due to theft, fire or weather conditions, any third party involved will also be covered.
Third Party Only car insurance will only cover any damage caused to another person’s vehicle (the third party), as well as any injuries incurred by the third party involved in the accident. This option does not cover you against loss or damage to your own vehicle caused by accidents, fire or theft. This is therefore usually the cheapest of the three options. If your car is paid off or is of a relatively low value, then it may be a wise option to opt for the Third Party Only cover in order to avoid having to endure the costs of a third party’s expensive car repairs.
When attaining car insurance, one needs to look carefully at these three main options and weigh up the pros and cons. Although it may be tempting to opt for a cheaper type of car insurance such as Third Party Only cover, it could become very costly if you are involved in an accident and have to pay all of the repair and replacement costs out of your own pocket.