When searching for car insurance you will be presented with three broad options by most providers that determine your level of cover – third party only, third party fire and theft and comprehensive car insurance. So how do you decide which is best for you?
To make a decision you need to understand how each type of policy works. Here is a brief explanation:
Third party only: This covers damage to vehicles driven by third parties that you are involved in an accident with as well as its occupants. It also covers the property of third parties – so for example if you drove into somebody’s garden wall, the expenses of repairing the wall would be covered. However, there is no protection for you or your vehicle.
Third party fire and theft: This offers the same protection as third party only but with additional protection for your own vehicle from fire damage and theft. However, your vehicle is not covered in the event of an accident.
Comprehensive cover: This is the most complete form of car insurance and will protect your car – typically paying for repairs or a replacement – in the event of a crash. These types of policies also offer a number of policy features that vary from insurer to insurer – for example you may be offered breakdown cover; personal accident cover; personal possessions cover; or even a courtesy car if you are off the road for a set period.
Clearly, the more cover you have the better – and so comprehensive cover on paper sounds like the better choice. However, premiums for comprehensive cover can be sky high because of the additional protection on offer.
As such you should weigh up how much your vehicle is worth before determining the right cover for you – if your car is worth less than the comprehensive cover’s annual premiums you may be best to stick with a lower grade policy.