A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident. Instead of paying out of pocket for auto accidents, people pay annual premiums to an auto insurance company; the company then pays all or most of the costs associated with an auto accident or other vehicle damage.
Have you bought a car? If yes then what is next? I am not talking about the joyous ride you are going to encounter. Every purchase of car must be followed by taking a car insurance policy. This is the most important thing that one must consider after purchasing a car. But many people are not aware of the right person or the car insurance policy provider. There are many factors to be considered to select the car insurance provider. Every car insurance policy provider would promise several things but a closer look will tell you a different story. This is the reason for anybody to study a lot of factors before zeroing to one car insurance provider. So what is my car insurance cover? This depends on the type of insurance you buy and the type of contract you are in.
In many cases people are not aware of the type of insurance cover they purchase. The proximity of the cover depends on the type of loan we get. There are many types of cover. In some cases the insurance coverage extends to even the pillion rider. This means that whenever the vehicle encounters an accident then the person is eligible to claim the insurance even to the pillion rider. This type if insurance covers the medical expenses of both the people in the car. If the car has more than the driver then everyone in the car can claim the insurance. So the question is how to buy good car insurance. You may buy a good car but the purchase of the car must be followed by a good insurance cover.
A good or a classic car insurance policy is one which covers when the car meets up in a pile up or any other worst situation. One has to spend a lot of time in choosing car insurance. The time we spent on finding the correct car insurance policy is really worth the money. This is because many people just rush to buy a car insurance and end up getting an insurance policy that is not worth paying. There are lots of requirements for anyone to get a good insurance cover. One has to have a good driving record for getting one. It is said by experts that one has to possess a driving license that is at least ten years old. So take care while choosing the same!
Car insurance policy types
Buying car insurance is a legal requirement for any vehicle which is kept on the street, on a driveway or in a garage – provided you don’t have permission to keep it uninsured and off the road.
But although cover is mandatory, you do have a choice in the kind of policy you buy. Here are details of the three types of cover available: third-party, third party, fire and theft, and comprehensive.
When you search for a car insurance quote, it could be worth checking the price of each type before making a final decision. The kind of policy you choose could affect the size of the premiums you pay – but make sure you are comfortable with the level of cover you are afforded. If you need to make a claim, buying a lower level of protection could turn out to be a false economy.
Third-party only policies
The reason motor cover is required by law is so that other road users are protected from any damage you may cause. (The law is not quite so concerned with the damage you inflict on yourself or your own vehicle.) The most basic type of motor policy is third-party only cover, and it provides this minimum protection – against damage you are responsible for – to other people, their vehicles and their property.
In theory, third-party policies should be the cheapest, but do not automatically assume this will be the case: when you shop around, compare the costs for different types of policy. It could be that extra cover may not cost much more. So if you are in an accident that is your fault, your third-party policy will pay for the cost of repairing any other vehicles, and also for medical treatment costs or legal claims against you.
But it won’t insure you for repairs needed to your own car, or any of your own medical expenses. Nor will you be covered if your vehicle is stolen.
And if you’re involved in an accident where the fault can not be attributed, you will also be unable to claim. If your vehicle is not worth much, you could be tempted to opt for third-party cover – but bear in mind this would leave you without insurance against injuries you yourself sustain.
Third-party, fire and theft
As the name suggests, this offers the same cover as third party but also pays out if your car is stolen or damaged by fire. This type of policy is likely to be more expensive than third-party only, but if your car is not worth much you may be willing to do without the fire and theft cover – especially when you consider you’ll always have to pay something towards any claim in the form of an excess.
Comprehensive car insurance
This type of policy will cover you for damage caused to your own vehicle, as well as to other road users, even if an accident is your fault or if blame can’t be attributed.
You are also covered for fire and theft. You might expect comprehensive policies to be the most expensive type of cover, but this is not necessarily the case.
Some insurers have reported that higher-risk drivers – such as the under-25s – are more likely to choose third-party policies. As a result, the risk associated with this type of cover – and therefore its price – has been rising in relation to comprehensive cover.
Despite its name, comprehensive insurance may not cover you against every eventuality. For example, you may need to pay extra for breakdown insurance, or to ensure that you get a courtesy car if your own vehicle needs to be repaired.
Saving money on cover
Choosing a lower level of protection is not the only way to reduce the premiums you pay (and, as mentioned above, you should bear in mind that comprehensive policies are not always the most expensive). There are a number of other steps you can take to cut the cost of insurance without reducing the amount of cover you have:
- Reduce the excess you pay. You can cut your premiums by opting for a larger voluntary excess – so if you agree to pay the first £250 of any claim rather than just the first £100, your policy will cost less.
- Beef up your security. If your car is fitted with an alarm or immobilizer, it should be harder to steal. This should lead to a lower cost of cover.
- Add a named driver. If you are relatively inexperienced on the roads, this is probably making your insurance more expensive. By adding a more experienced named driver, such as a parent, to the policy, you could see premiums fall.
- Shop around. As you’re on Confused.com already, you probably don’t need reminding. But if you’re buying insurance for the first time, or your policy is up for renewal, comparing the best prices from the widest range of providers is the easiest way to cut your premiums.