Correct Car Insurance Policy
Saturday, March 6th, 2010
There are 3 types of insurance policies and so think about your circumstances to select most appropriate one. Most people are guilty of picking wrong policies. So read carefully and then decide what suits you.
(a)- THIRD PARTY
Minimum level of cover required to drive legally in UK is called “third party”. A general misconception is that it is always cheapest, most of time that’s correct but not always, so always get quotes for both “third party” and “comprehensive”.
“Third party” covers you for any harm you cause to another person’s vehicle and protection for any passengers in your car. So in case of an accident caused by your fault, you will be responsible for repair or whatever of your own car.
These sorts of policies are most suitable for,
1- Cheap cars worth less than £1000.
2- Aged under 25.
3- Without no-claim bonus.
4- Living in a high risk area
(b)- THIRD PARTY FIRE AND THEFT
This term is self explanatory, you get additional cover of assistance if your car is stolen or is set on fire.
(c)- FULLY COMPREHENSIVE
This is for sure has widest coverage of risks and may or may not be cheapest. So if there is an accident caused by you, you will be able to claim everything, literally. This policy covers you for accidental damage and vandalism and may also be able to drive other cars. Ideal for high value cars.
SUGGESTION
As in case of third party, policy holder takes responsibility of his own car, so it can be expensive occasionally as they can be viewed as high risks, so you are better off checking quotes for both types. Be wary of this point if your age is under 25, because a strong trend of accidents shown in recent years by youngsters having a third party insurance and are found involved in accidents. So car insurance industry has reacted proactively and increased premiums.
In next post, we are going to show you how you can reduce controllable risks to reduce your insurance bill, click HERE.
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