Confused About Car Insurance?
You're not alone!
With so many companies offering obviously cheap car insurance, deciding which policy suits you best takes a little time and thought. The rising cost of living, especially in relation to motoring costs, means we are all looking to save money and find the best quotes we can. It's also worth considering the different types of insurance on offer, and if they are suitable for you. There are many uninsured drivers out there – although car insurance is a legal requirement and will in future be better enforced by the DVLA who will be able to 'go compare' themselves. They'll be comparing their own databases with insurance company databases to make sure that all taxed cars are insured.
Third party
Third party insurance is the minimum insurance required to stay legal. Third party insurance basically insures you in the event of damage to other cars or property. It is particularly popular with new drivers which insurance costs are among the highest, but if you have penalties or have had an accident the temptation to pick this option may be strong. If your car is low value and you would be able to replace it in the event of an accident, then this level of insurance may be the one to consider. However, always compare the cost with the other levels of cover, as the difference may not be as much as you think.
Third party, fire and theft
This is the next step up on the car insurance ladder. It operates in much the same way as third party, but includes cover if your car is stolen or damaged due to attempted theft. It also covers your car if it is involved in a fire – either accidentally or as a result of theft or vandalism. For low value cars, as with third party, this may be a reasonable option. Check the level of 'excess' payable on the car insurance policy to ensure it is worthwhile. Again, always compare this type of insurance against the other two.
Comprehensive
This type of car insurance covers you in the same way as the previous two – but also covers the cost of repair or replacement in the event of an accident caused by you. For higher value cars, which you would not be able to replace yourself, this is usually the best cover to go for. Often fully comprehensive car insurance will come with some additional benefits – such as a courtesy car if yours is out of action, windscreen cover and roadside assistance. When comparing the cost of comprehensive car insurance it is worth considering the value of the additional benefits on offer, as they may mean this is actually more competitive than third party, fire and theft.
Whatever your car insurance needs, consider all of the options carefully and think twice before just buying the most basic level of cover. Often it is possible to find competitive quotes for higher levels of cover which can save you hundreds of pounds in the future.
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